Money Management

Since credit card debt is expensive, it’s best to pay it off as quickly as possible. Learn more about why you shouldn’t disregard credit card debt. 

Credit card debt is, unfortunately, a common issue for many people. While credit cards offer convenience, it can be easy to overspend beyond your means if you’re not cautious. Since credit card interest rates are usually high, a debt problem can quickly get out of control and negatively impact your personal finances. For those with existing credit card debt, it’s essential to tackle it quickly. Here’s what happens if you ignore your credit card debt.

Your credit card balance will climb as interest accrues

You’re not alone if you have credit card debt you’re trying to pay off. However, knowing the risk of delaying eliminating your debt is essential. It’s important to remember that you’ll continue to pay interest charges when you carry a balance on your credit cards.

That’s because, for most credit cards, credit card interest accumulates daily. As you might imagine, credit card debt can add up quickly the longer you carry a balance. As your credit card balance climbs, reaching other financial goals can become more challenging. Plus, it can cause added stress. Tackling your credit card debt sooner rather than later is best.

Your credit score can suffer

When you disregard your credit card debt, your credit rating and credit score can be negatively impacted. One factor that makes up your credit score is your credit utilization, or how much available credit you use. Experts recommend keeping your credit utilization ratio below 30% if you’re trying to maintain a good credit score.

When your credit card balance grows, you’ll use more available credit. That means your credit utilization ratio can increase, which could result in a lower credit score. Paying down your debt can help to reduce your credit utilization ratio and may help to improve your credit score.

How to pay off credit card debt quickly

Are you ready to eliminate your credit card debt? When it comes to paying off debt, it can be beneficial to prioritize your highest-interest debt to save money on interest fees. This popular debt payoff strategy is known as the debt avalanche method. With this method, you put more money towards your highest-interest debt first.

If you choose this method, make sure you continue to pay at least the minimum amount due on all your other debts, including your credit cards with lower interest rates. It’s never a good idea to skip credit card payments. If you miss a payment, you’ll be charged late fees. You could also see negative marks on your credit report if you pay your bills late.

If your credit card balance is overwhelming and you’re worried about additional interest charges hitting your account, you might consider getting a balance transfer credit card. If this option is available, it can help you save money on interest so you can get rid of your debt faster.

A balance transfer credit card lets you transfer your debt from another card and take advantage of a promotional 0% APR for a set amount of time. During that timeline, no additional interest will be charged. For many consumers, this makes tackling their credit card debt more manageable.

Most balance transfer credit cards charge a balance transfer fee. You can expect to pay around 3% to 5% of your transferred balance. For most people, this fee is worth paying to avoid continued interest charges on their debt. You can eliminate your debt without paying interest fees if you pay the entire balance off before your 0% interest promotional period ends.

Don’t ignore your credit card debt

Credit card debt can be overwhelming, but it’s possible to pay it off. The first step is to be honest about the amount of debt you have so you can devise a strategy to eliminate it for good.

You can use our credit card interest calculator to determine how much money you should put towards payments to eliminate your debt in a timely manner.

By tackling your debt quickly, you can free up some of your income for other expenses or start working on other essential goals, like building a solid emergency fund.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

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 until 2024, 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.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Avalanche. The Motley Fool has a disclosure policy.

 Read More 

Buying tires at Sam’s Club comes with some great perks you won’t want to pass up — including the guaranteed best “all-in” price. Find out more. 

Sam’s Club is a great place to buy many different kinds of items, from household goods to clothing and electronics. These items come with prices that are friendly to your bank account, and you’ll have a pretty good selection of them at most Sam’s Club stores.

Beyond the basics, though, Sam’s Club also offers great deals on items you might not expect — like tires. While Sam’s Club may not be the first place you’d think of to get new tires for your vehicle, there are plenty of great reasons to break out your credit cards and get some new wheels there.

Here are a few big perks of buying tires at Sam’s Club.

1. Sam’s Club offers great prices

Sam’s Club offers affordable prices on tires, especially when the store is running one of its frequent promotions.

Best of all, you’re actually guaranteed the lowest price there thanks to Sam’s Club’s “Dare to Compare” offer. With this offer, if you can find a better “all-in” price for tires, installation, and a comparable warranty, Sam’s Club will match it.

While this guarantee has some fine print associated with it, including the fact that the competitor offer must include mounting, balancing, prorated road hazard protection, and a few other items, the fact is that you can ensure you don’t overpay by taking advantage of Sam’s Club’s low-price promise.

2. Sam’s Club offers tire installation with tons of perks

Sam’s Club’s premium tire installation package will cost you only $20 per tire, which is a huge bargain when you consider what this package comes with.

You will benefit from a huge number of perks after Sam’s Club installs your tires, including waste tire disposal, road hazard protection, free flat repair for the life of the tire, lifetime tire balancing, and lifetime tire rotation.

These perks can help you rest easy by knowing if there’s a problem with the tire after it’s installed, Sam’s Club will be there to help you out.

3. Roadside assistance

If you remain an active Sam’s Club member after having your tires installed, you also get another huge benefit: 24/7 access to roadside assistance. This is available to you for three years from the date of your tire installation. The service provides:

TowingHelp if you get a flat tireDelivery of fuelHelp if you get locked out of your vehicleWinching or extractionA vehicle jump start

If you find yourself stranded on the side of the road, you’ll be very glad you qualified for this perk by choosing to have your tires installed at Sam’s Club.

4. You can shop while your tires are installed

Finally, the last big benefit of having your tires installed at Sam’s Club is that you can shop while the work is being done. Sam’s Club offers appointments or walk-in service, with Plus members getting early access.

Since it can take time to have your new tires installed, it’s helpful to be at Sam’s Club where you can get your groceries rather than getting stuck at a standalone tire store where there’s less to do.

For all four of these reasons, you should seriously consider getting your next set of tires at Sam’s Club. You won’t regret it.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

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 until 2024, 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 

Costco and Petco both offer low prices on pet supplies. But which is cheaper? Read on to compare prices. 

Costco’s low prices (and free samples) are hard to beat, even by a veteran low price pet store like Petco. Even though both stores are different businesses (Costco is a retail warehouse of myriad products, whereas Petco sells solely pet products), their pet supply offerings beg comparison. Who has better prices for your pets? Let’s take a closer look at both stores and see which is better for your personal finances.

Price comparison

When it comes to price, Costco beats Petco for most pet products — if you’re willing to buy them in bulk. This is true for toys, food, and flea and tick treatment. While Petco has greater variety (more on that below), here’s how the two compare for similar dog and cat products.

Dogs

Cats

Costco also has partnerships with High Tech Pet and Hotel Doggy and can offer its members lower prices on products sold by both companies. For instance, you can buy a medium-sized Power Pet Door (a pet door that opens mechanically when your pet approaches it) for $289.99 as a Costco member, while the same door would cost you $399.99 at Petco.

One thing you’ll want to factor into your comparison is the $60 cost of an annual Costco membership. To access these lower prices at a Costco warehouse, you’ll have to pay the annual membership, whereas shopping at Petco is free.

Variety of products and services

Even if Costco has lower prices by the unit, Petco offers more products and services. In fact, aside from basic products for cats and dogs, Costco offers pet shoppers very little in terms of choice. In contrast, Petco’s entire business is built around supplying your pets of all kinds, not just cats and dogs. Here’s just a few services you can find at Petco that Costco doesn’t offer:

Pet pharmacy and clinicDental careDNA kitsGroomingTrainingAdoptionsBoardingMicrochipping

Costco does offer pet insurance, however, which might be worth comparing with Petco’s pet insurance for your pets.

Convenience

Petco also has a leg up on Costco in convenience.

For one, Petco has more stores: roughly 1,400 nationwide versus the 600 or so Costco stores. Both stores offer free same-day delivery on orders over $35, but Costco will charge slightly more for items when you have them delivered. Petco, in contrast, charges the same prices regardless of how you buy them, and you can even get refunded the difference if you find an item cheaper in the store.

Petco is also more convenient if you have picky pets. For instance, my cats only eat a certain kind of Fancy Feast grub (spoiled, I know), which I can’t find at Costco but can buy at Petco. They also don’t like the dry food that Costco sells and prefer another brand, which I can find at Petco.

That said, you can return food your pets don’t like to Costco for a full refund. Of course, you don’t have many options, so if your pets don’t like one kind of food you might have to shop at Petco to satisfy finicky tastes.

Finally, you can bring your pets with you to Petco stores. Costco, however, doesn’t let you bring in your pets, unless it’s a service animal.

Costco vs. Petco: Which is right for you and your pets?

You’ll likely save more money by buying pet necessities — like food, cat litter, and flea and tick treatment — in bulk at Costco. However, if you’re looking for more toys or brands of pet food, you might want to shop at a traditional pet supplier, like Petco or Chewy. In fact, to save the most, I would recommend shopping at a combination of Costco, Chewy, and Petco. The warehouse can help you save on basics, while Petco and Chewy can offer lower prices on items you don’t want to buy in bulk or products you can’t find at Costco.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

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 until 2024, 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 positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

 Read More 

Are you prioritizing your savings goals? It’s possible to reduce your spending while having fun this summer. Read on for ways to save money and have fun. 

During the summer, it can be fun to get out and explore and find ways to fill your time with activities. To avoid overspending, you may seek ways to cut costs while prioritizing having a good time. It’s possible to save money and have an adventurous summer. We’ve outlined a few ways to reduce your spending while ensuring you have a fun-filled summer.

1. Look for free and low-cost events and activities

It’s common for communities to have free events when the weather is nice. If you want to have fun this summer without going into credit card debt, look for free and low-cost activities. Some examples include parades, festivals, farmers’ markets, and family-friendly movie screenings. Free indoor activities may also be available at your local library, museum, or community center.

2. Get active outdoors without spending money

Summer is an excellent time to spend more time outdoors. If you want to increase your physical activity without spending money on a gym membership, consider planning early morning or late evening walks to get some movement in when the heat cools down. Exercise is good for your body and mind, and it’s possible to be active without spending money.

3. Plan special activities at home

You don’t have to leave your home to have a good time. If you’re working on important personal finance goals like increasing your savings, you may want to plan some exciting summertime activities that you can do at home. Here are some examples of affordable adventures that you can do with your loved ones without leaving the house:

Weekly game nightsCampfire hangouts with s’mores and ghost storiesMake your own popsicles (and get your kids involved!)Get crafty with sidewalk chalkPlan a potluck cookout

4. Find ways to save money on dining costs

Dining out with friends and family can be a great activity, especially in the summer. But a meal out with loved ones can quickly get expensive if you’re not careful. One way to save on dining costs is to pay attention to deals. Check to see if there are affordable deals in your area.

Happy hours, Buffalo wing nights, and daily specials are some deals that can help you save money without giving up on a day or night out with friends. You might also consider dining out for lunch instead of dinner to keep your dining spending in check. Don’t forget to pay using one of the best dining credit cards so you earn rewards.

5. Skip the expensive movie dates

It can be fun to watch movies, but going to the cinema can quickly get expensive — especially if you’re going on a date or taking your whole crew. But there are plenty of ways to get some movie time in without draining your checking account balance.

One option is to see matinee screenings instead of more pricey evening movie screenings. Another idea is to take advantage of movie deals like discount movie nights or unique promotions like AMC’s Summer Movie Camp to save money on movie ticket costs.

If you prefer to watch movies at home, you can rent movies to stream digitally for as little as $2 through Redbox.com. If you already invest in streaming service subscriptions, you can watch movies available through the streaming apps you already use to avoid extra expenses.

Don’t ignore your savings goals

Keep at it if you’re working hard to increase your savings account balance. Don’t feel like you have to do everything this summer. You may spend more than planned if you’re constantly filling your schedule with things to see and do. The good news is you can have an exciting summer full of adventure without ignoring your financial goals.

These savings accounts are FDIC insured and could earn you 12x 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 can earn you 12x the national average savings account rate. Click here to uncover the best-in-class picks that landed a spot on our shortlist of the best savings accounts for 2023.

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.Natasha Gabrielle 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.

 Read More 

Taking on a lease payment isn’t ideal, but it’s necessary for me. Read on to see why. 

My husband and I bought our Toyota Prius in 2007 and paid it off in a short period of time. We then went the same route when we bought our minivan in 2014. We were able to snag an affordable interest rate on a three-year auto loan, so we paid off that second car in 2017. As such, we’ve been car-payment-free for the past six years.

Not having a car payment to deal with has given us a lot more flexibility. The average monthly payment for new vehicles hit a record high of $730 during the first quarter of 2023, according to Edmunds. By not spending anything in that vicinity, we’ve had the option to put more money into our savings account and spend more on leisure and vacations.

But unfortunately, our streak of being car-payment-free is coming to an end. My husband and I recently put down a deposit on a car lease that may not begin until 2024 due to our new vehicle not being available until then. But once it comes in, we’ll have a monthly car payment on our hands. Still, we feel that’s a necessary move for us for a couple of reasons.

1. Our Prius is on its way out

Cars can only last so long, and our Prius has been showing signs that it’s not going to last much longer. Seeing as how it’s more than 16 years old, that’s not even something I can get upset about, because the car had a good run.

But because we live in suburbia and have kids with conflicting schedules, we need to be a two-car household. And we need two reliable cars we can count on. The Prius is starting to no longer fit that bill, so getting a replacement car seems inevitable.

Also, a Prius is an okay car to drive if you have a smaller family. But even though my three kids are fairly young, it’s cramped in the back when we drive it around. And the Prius doesn’t allow room for our dog to ride along, so that’s another reason it no longer serves our needs.

2. We don’t want to commit to a new car purchase

Because I’ve owned and driven the same cars for a long time now, I’m not really sure what I want out of a new car. My husband, meanwhile, really wants a plug-in hybrid, but because that type of car is new to us, we don’t want to purchase one outright in case it ends up being a poor choice. That’s why we’re opting to lease our next car rather than buy it.

I recognize that leasing may not be the most cost-effective option. But at this point, it’s what we’re most comfortable with.

It’s going to be difficult having a monthly lease payment to cover after so many years of getting a break from that expense. The silver lining is that I know those payments are about to start coming due, so I’m able to make some changes to our household budget to allow for them.

In fact, we plan to start implementing those changes come July, which is a good number of months before our lease will likely begin. That way, we’ll be used to our new budget once we start having to make those payments.

All told, taking on any new expense is an adjustment. And when you’re taking on the expense of a car payment, whether for a vehicle you own or lease, it can be even tougher to get used to. But thankfully, we have a heads-up that our financial situation is going to change. And we’re forcing ourselves to adjust our spending now so we’re ready once our lease begins in 2024.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

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 until 2024, 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