Money Management

Pet insurance should often provide coverage for expensive procedures. But read on to learn why pet owners may want to get preauthorization. 

Pet insurance can be a lifesaver for companion animals — literally. Many pet owners want to get the best care possible for their furry family members, but they may not always have enough money in their bank accounts to cover expensive treatment.

Depending on policy terms, pet insurance will pay for most kinds of costly care pets need. But, owners who are hoping their insurer will pay for a big claim should take one important step first.

Pet owners should take this key step to protect their finances

Pet owners who want to make absolutely sure they don’t end up facing financial disaster should contact their pet insurer before a big procedure in order to find out the process for getting the claim pre-approved.

This step could be vital because of the way pet insurance works. See, owners typically pay for a procedure out of pocket, giving the money to their vet upfront when their animal needs care. Pet owners then submit a claim to be reimbursed for the money they paid out, minus any deductibles or copays they will owe.

The problem comes if a pet insurer denies a claim for some reason. The money has already been spent, and while the owner may be able to appeal the denial, there is no guarantee the pet owner will actually get the cash back. And this could be a huge problem if, for example, they borrowed for it with the hopes their insurer would be reimbursing them soon so they could pay off the debt.

The good news is, many pet insurance companies provide an option to submit a request to have a claim pre-approved before the care happens. If the insurer denies it, the owner has time to figure out what to do.

This could mean appealing and arguing about whether the procedure is covered before spending money for it and being caught off guard. Or it could mean the owner has time to look into less expensive options with their vet, or time to work out a payment plan prior to spending a ton of money they can’t afford in hopes the insurer will step up and reimburse them.

In other words, getting a claim pre-approved gives an owner the ability to make the best care decisions with full knowledge about what their choices mean for their finances — rather than finding out too late that they’re in a financial pickle.

Pet owners need to understand how their insurance coverage works

Pet insurance works differently from human insurance because it puts the onus on the pet owner to make sure their claims are covered and to pay upfront for care in hopes of reimbursement.

Pet owners need to be aware that there is a risk of prepaying for veterinary services they aren’t 100% sure their insurance company will cover, and not realizing that could have serious consequences. So, owners should find out before a crisis situation how the pre-approval process works and make sure they go through this step before getting expensive care if the veterinary services would otherwise put a huge strain on their budgets.

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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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Paying off debt is a good move, but you’ll want to do it strategically. Read on to see why. 

Being in debt can be a real drag. Not only can it wreak havoc on you mentally, but it can cost you a lot of money in interest. So if you’ve recently come into some money, whether in the form of a tax refund, raise, or inheritance, you may want to use it to pay off some of the debt you’ve accumulated.

But if you’re going to tackle your debt load, it’s important to go about it strategically. If you pay off the wrong debt first, you might end up costing yourself a lot of money in interest, not to mention hurting your credit score needlessly.

Interest rates really matter

You might have a variety of debts, such as a mortgage, personal loan, and credit card balance. You may be inclined to leave your mortgage alone, since it’s a long-term debt, and focus on the other two first. But generally speaking, a personal loan is going to come with a lower interest rate than a credit card balance. So if you have both types of debt, you’re probably best served paying off your credit card first.

Imagine you’re paying 7% interest on your personal loan and 17% interest on your credit card. Even if your personal loan balance is a lot smaller than your credit card balance, and you’re able to shed it in full, it doesn’t make sense to pay off a debt with a lower interest rate when you owe money on a credit card that’s charging you more than double.

You should also know that too much credit card debt specifically can damage your credit score. That’s because a big factor that goes into calculating your credit score is your credit utilization ratio, which measures the amount of revolving credit you’re using at once.

If you have a total spending limit across your credit cards of $10,000, and you owe $4,000 on one of those cards, that’s 40% utilization. But a ratio above 30% could be detrimental to your credit score, so that’s yet another reason to tackle your credit card debt first.

Map out a plan

You may be eager to shed all of your debt as quickly as possible. But it pays to go about the process methodically.

Tempting as it may be to tackle smaller loan balances first, from a financial standpoint, your best bet is to really focus on interest rates instead. Order your debts from highest interest rate to lowest, and then work your way down that list.

And if you’re eager to get rid of your debt as quickly as possible, don’t just apply a windfall to your debt when a pile of money lands in your lap. Instead, make lifestyle changes that allow you to free up cash consistently. That could mean cutting your spending on non-essential items and getting a second job to boost your income.

Having debt hanging over your head can be a terrible feeling. So the sooner you’re able to get rid of it, the better you might feel about your financial picture.

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.The Motley Fool has a disclosure policy.

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Ramit Sethi cautions consumers against opening one type of credit card. See what it is and why he says it could cost you. 

Most people don’t apply for new credit cards too often. It’s normally something consumers do once a year, max, except for those who really like using multiple cards. And if you don’t apply for new cards much, it’s all the more important to choose wisely when you do. Because some cards have much more to offer than others.

Unfortunately, one type of credit card you probably get offered all the time can also be one of the worst choices. It’s those store credit cards, also known as retail credit cards, that practically every store seems to offer during the checkout process.

Ramit Sethi, host of How to Get Rich on Netflix, recently warned against getting these cards. He said “AVOID retail credit cards — they have awful terms and end up costing you more money.” Here’s why you should follow his advice.

Why you should stay far away from store credit cards

If you don’t shop around for credit cards too much, store cards may look like a good deal. Apply today, and get 20% off your purchase! Earn rewards to redeem for gift cards. And many store cards also advertise zero-interest offers.

These are all decent benefits. However, you could get much more valuable benefits from quality credit cards not tied to a store.

For example, lots of store credit cards entice shoppers with an instant discount of 10% to 20%. Everyone loves discounts, but how much is that actually going to be worth? If you spend $200, a 20% discount saves you $40. To put this in perspective, some regular credit cards offer sign-up bonuses worth $200 or more.

Store cards also usually earn rewards that are redeemable in stores. The problem is that you can only use these rewards when you want to buy something. If you have a cash back card, you can redeem your cash back anytime and save yourself money. Store rewards are only useful when you have something to buy at that store.

The other common perk you see with store credit cards is special financing offers. These are almost always deferred interest offers. What that means is you pay no interest if you pay the full balance within the specified time period (often six months). But if you don’t pay in full, you can be charged all the interest dating back to when you made the purchase.

Which type of credit card should you get instead?

If you’re interested in a store credit card because you want to earn rewards, check out rewards credit cards not tied to stores instead. To be specific, here are the two types of rewards cards to look at:

Cash back credit cardsTravel credit cards

These rewards cards are more versatile than store cards, and it’s much easier to use their rewards to save yourself money. Cash back is as easy as it gets, as you can put it toward your credit card bill or deposit it to your bank account. Travel rewards are a little more complicated, but if you like to travel they can save you a lot of money on your trips.

If you were planning to get a store card because of a special financing offer, look into 0% APR credit cards. They charge a 0% APR for an intro period, which is 12 months or longer with some of these cards. And unlike store cards, 0% APR cards offer waived interest instead of deferred interest. If you don’t pay off everything by the end of the intro period, you’re only charged interest on your remaining balance going forward. There’s no risk of getting hit with a big bill after the intro period like there is with deferred interest offers.

There are a small number of store credit cards that can be useful for frequent shoppers. However, in most cases, a non-store card will be a better option. That’s why it’s always a good idea to compare credit cards before you apply for one. By checking out multiple cards and not just going with the first offer you see, you can make sure you’re picking the one that will save you the most money and works best with your lifestyle.

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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.Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy.

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Getting married may or may not lower your tax refund. Read on to learn more. 

There are plenty of financial benefits to getting married. For one thing, if you’re self-employed, you may be able to get onto a spouse’s health insurance plan once you tie the knot, thereby saving yourself money.

But while getting married might make your taxes less burdensome, the opposite might also happen. And so depending on your situation, you might end up with a larger tax refund once you get married — or a smaller one.

How getting married might affect your taxes

The U.S. tax system is a marginal one, which means a higher rate of tax is imposed on your highest dollars of earnings. This is also known as your tax bracket.

Your tax bracket hinges on your tax-filing status and your income. If you’re single and earn $40,000, you fall into the 12% tax bracket. That doesn’t mean your entire $40,000 salary will be taxed at 12% — just your highest dollars of income. Once you get married, though, your tax bracket might change as your filing status shifts to married filing jointly.

So let’s say you get married and your spouse makes $60,000 a year. Suddenly, your joint income is $100,000, putting you in the 22% tax bracket. That higher tax bracket could result in a smaller refund, because collectively, you’re paying a higher rate of tax on your highest dollars of earnings.

In some cases, you won’t be negatively impacted by getting married in terms of your tax bracket. If you earn $40,000 a year and your spouse earns $40,000 a year, the tax bracket you’d fall into as married filing jointly is 12%. That’s the same as you’d land in if you were each filing as single. So it’s really just a matter of how the numbers work out specifically for you.

Getting married might lead to more tax deductions

In some cases, you might end up being able to claim more deductions on your taxes by virtue of being married. Let’s say you can’t afford to buy a home alone, but with your spouse’s income, you can swing a place to own. In that case, you may be able to deduct the interest you pay on your mortgage on your taxes, provided you itemize and don’t claim the standard deduction. And the more deductions you’re able to claim, the higher your tax refund stands to be.

Also, some people can’t afford to take on the expense of a child (not to mention the work of raising one) until they’re partnered up. But as a parent, there are a number of tax deductions you can claim that reduce your taxable income, thereby setting the stage for a higher refund.

All told, it’s hard to know what will happen to your tax refund once you tie the knot, as it’ll hinge on your specific financial situation. But a good bet is to sit down with an accountant once you get married so they can help you and your spouse come up with strategies to keep your IRS burden to a minimum. That could, in turn, set the stage for higher refunds and a lot more money in your pocket.

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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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It’s important to choose a brokerage account that meets your needs and is easy to use. Read on to learn more. 

If you have money earmarked for emergency expenses, it’s best to keep it in a safe place like a savings account. But if you have money you don’t need for emergency fund purposes, then it’s a good idea to invest your cash so it can grow into a larger sum over time.

When it comes to putting money into a brokerage account, you have choices. But one thing you don’t want to do is choose the wrong account.

Signs you’ve picked the wrong brokerage account

Your brokerage account should make it easy for you to acquire the assets you want without losing money to various fees. So if yours doesn’t fit that bill, it’s a sign you’ve chosen the wrong one. And if you keep your money in the wrong brokerage account, you might lose out in the form of:

Costly fees that eat away at your returnsFewer investment choicesA harder time managing your portfolio

Let’s break these factors down. Some brokerage accounts charge a fee for making trades, but there are many, many that don’t. If you’re charged a fee every time you make a transaction, like buying or selling a stock, it’s apt to eat away at your returns. You don’t want that.

Similarly, some brokerage accounts charge what’s called an inactivity fee. This comes into play when you don’t make trades for an extended period of time. This is also something you don’t want. If you’re happy with the assets you’ve chosen, you shouldn’t feel compelled to buy more or sell some just to avoid being charged a fee.

Now let’s talk about investment choices. Most brokerage accounts will allow you to buy a range of stocks and ETFs, or exchange-traded funds, which are funds that trade publicly. Some brokerages also let you buy crypto. But not every brokerage account allows you to buy assets on a fractional basis.

With fractional investing, you can buy a piece of a share of stock or ETF if a full share isn’t something you can afford, or if you simply don’t want to own a full share. The upside of fractional investing is that it can make it easier to build a diversified portfolio. So if your brokerage account doesn’t offer this option, it could pay to move over to one that does.

Finally, your brokerage account’s platform should be easy to navigate. If it isn’t, you might stop checking up on your investments or stop buying stocks because you feel it’s a hassle. That’s not a good thing. If your brokerage account is difficult to use, you’re apt to struggle to manage your portfolio, and that could have negative consequences long term.

You’re not stuck with a bad brokerage account

If you end up unhappy with the brokerage account you’ve chosen, don’t resign yourself to it. Instead, explore your options for finding a new one. Ideally, investing is something you’ll do over a long period, so it should be an easy, rewarding process all in.

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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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If you like fast food, don’t miss out on the chance to earn rewards when you spend money. Read on to find fast-food rewards programs offering freebies to new members. 

Many of the most popular fast-food chains have rewards programs. Customers can sign up for these programs to get discounts and special offers and earn rewards. If you have a favorite fast-food eatery that you visit and aren’t using its rewards program, you’re missing out on valuable freebies. Some companies even provide freebies as a thank-you for enrolling in their rewards programs. Here are a few loyalty programs you may want to join if you like free food.

1. McDonald’s

Calling all McDonald’s lovers: Through the MyMcDonald’s Rewards program, customers can activate deals that make their orders cheaper. Members also earn points as they make purchases, which can be redeemed for free food and drinks. New members who sign up for the rewards program will receive an offer for a free Big Mac with a minimum $1 purchase.

2. Moe’s Southwest Grille

If you’re a big fan of Moe’s, don’t ignore the Moe’s Rewards program. As you make purchases, you’ll earn points. For every 100 points you collect, you’ll earn $10, which can be redeemed on your next order. Members also get a free burrito each year as a birthday treat. By signing up for the program, you’ll get a free cup of queso. What’s not to love about a cheesy freebie?

3. Panera

Panera is a popular fast-casual eatery that also has a free rewards program. Through the MyPanera program, you’ll earn rewards as you spend money and can choose the rewards you want when redeeming. Members also get a free yearly birthday treat. By signing up for the MyPanera rewards program, you’ll get a free pastry, bagel, or sweet with a purchase as a thank-you for joining.

4. Taco Bell

Taco Bell also has a rewards program and it’s free to join. As you spend money, you’ll earn points which can be redeemed for free food and drinks. As a member, you’ll also discover members-only deals which could be welcome news for your checking account balance. New Taco Bell Rewards members can choose a free reward after signing up for the program.

5. Wendy’s

The Wendy’s Rewards program is free to join and is connected to Wendy’s mobile app. For every $1 you spend, you’ll earn 10 points which you can collect and redeem for free food and drinks. You’ll also find virtual coupons within the mobile app that can help you keep your spending in check. New Wendy’s Rewards members will receive an offer for a free 10-piece nugget with any purchase and will also earn 150 bonus points after making their first purchase.

Enroll in rewards programs to unlock extra savings

Are you missing out on the chance to earn rewards? While it probably doesn’t make much sense to sign up for every restaurant or fast-food rewards program, enrolling in programs offered by your favorite retailers is a smart idea.

By joining rewards programs like the ones mentioned above, you can unlock extra savings and get rewarded for being a loyal customer. It can take time to earn rewards, but every discount or freebie you earn adds up and may help improve your personal finance situation.

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.

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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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