Money Management

Many people turn to a private seller when buying a car. Find out what questions Dave Ramsey believes are the most important. 

Buying a car can be a huge financial burden and, for many people, a car loan is one of the biggest expenses after their mortgage.

Purchasing a used car is one way you can keep vehicle-buying costs down so your car won’t do so much damage to your bank account. And if you buy a used car from a private seller instead of a dealer, you may be able to get an even better price. You also take on more risk, though, since you don’t have a dealer to go back to and hold accountable if there’s an issue.

To help make sure you’re making a wise purchase and getting a car you’ll be happy with, finance expert Dave Ramsey recommends asking these three questions before moving forward with a sale from a private individual.

1. Why is the car for sale?

Ramsey advises asking the current sellers of the vehicle why they’re offloading it, as this can give you some insight into whether there are any potential problems or red flags to be aware of.

“Sometimes the best thing you can do is ask the seller this question, then stand back and let them do the talking,” Ramsey said. “This lets you scope things out, get to know the seller, and, obviously, understand the reason they’re selling the car. Maybe their family just welcomed their first child and they need an SUV instead of that two-door coupe — their car loss is your gain! But if they break out in a sweat or quickly change the subject, little red flags should start waving around in your head.”

While asking this question can make sense, the reality is that even most people who are selling a car due to problems are going to have prepared an explanation for why they are selling. So, while you can ask for the info, take it with a grain of salt and don’t necessarily assume you’re getting honest answers.

2. Do they have the title in hand?

Ramsey recommends asking to physically see the title when you’re considering buying a car from a private seller. If they don’t have the title, then you won’t want to give them any money because the title is how ownership is transferred. Ramsey said to also be on the lookout for whether the car has a salvage or a rebuilt title, since salvage titles can’t legally be driven and rebuilt titles mean the car was a salvage vehicle that has been repaired.

Asking this question is absolutely essential, and you do want to insist on seeing the title. Ramsey is right that this can give you a ton of information about the car’s history. You’ll also want to get the car’s VIN and run it through a service like Carfax to make sure there are no accidents or major repairs on its history.

3. How long have they owned the vehicle?

Finally, Ramsey said to ask how long the seller has owned the car. “If someone’s been driving their car for a while without too many problems, it might be a sign that the car is pretty reliable,” Ramsey said. “But if someone is trying to sell a car after owning it for only a year or less, they’re probably not happy with the car for some reason.”

Ramsey is right that a short ownership history is a red flag that should make you suspicious of any potential problems. Someone who has owned a car for a short time before selling is probably going to lose quite a bit of money on the deal since cars tend to lose value fast, so it’s worth looking into why anyone would want to do this.

In addition to asking these questions, it’s worth asking if a reliable mechanic can take a look at the car before you buy. If you don’t get the all-clear from a professional who can spot major issues, you may end up regretting it if it turns out there are things wrong with the car you didn’t anticipate.

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 

The federal government is nowhere close to approving a round of stimulus checks. But read on to see how an incoming payday might replace that. 

Many consumers have been struggling with inflation for months on end. And they’ve had no choice but to raid their savings or rack up balances on their credit cards to cope with higher living costs.

Because inflation has been raging for so many months, a lot of people have been calling on the federal government to issue stimulus checks. But at this point, it’s pretty clear that a near-term round of federal stimulus aid just isn’t in the cards.

That’s the bad news. The good news, though, is that you may have a windfall coming your way very soon. And if you put that money to good use, your financial situation might improve dramatically.

Lawmakers can’t justify a stimulus round

In March, the national unemployment rate sat at 3.5%. That’s right where it was before the pandemic began, and historically, it’s a low rate of joblessness.

Because of this and a generally strong economy, lawmakers aren’t going to be able to send stimulus checks out anytime soon. There’s really no way to justify them.

Stimulus aid has been utilized in the past during periods of economic distress, such as when the pandemic drove unemployment levels upward in a very big way. But right now, that’s not the case.

But while you may not see a stimulus check hit your bank account anytime soon, if you filed your taxes on time this year, you might soon see your refund arrive. And that could give you an opportunity to catch up on bills, pay off some debt, and shore up your finances until inflation cools off.

Put your tax refund to good use

For the week ending April 7, the average tax refund was $2,878. Chances are, the IRS will update that figure as it continues to process returns. The point, however, is that the typical tax refund being issued this year is pretty substantial. And if you make a solid plan for that money, you might be able to improve your finances and tide yourself over during this ongoing period of inflation.

First, figure out what bills you’re behind on and try using your tax refund to get current. If you owe back rent, for example, it pays to write your landlord a check using your refund.

Once you’ve caught up on bills, take a look at your savings. If you don’t have enough money in the bank to cover a few months of living expenses, use your refund to build an emergency fund.

Similarly, if you were forced to rack up credit card debt to cope with inflation, your refund could make it possible to chip away at your balance — or even eliminate it completely.

While a tax refund is by no means the same thing as a stimulus check, ultimately, both can achieve a similar purpose. So rather than bemoan the absence of stimulus aid, do what you can to put your refund to good use. And if you’re due a refund but haven’t yet submitted your 2022 tax return, do your best to complete it as soon as possible so you can get the money you’re entitled to.

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 

Many Americans have outstanding credit card debt. Find out how much credit card debt the average American has and learn how to pay your debt off faster. 

Unfortunately, it’s not uncommon for Americans to have credit card debt. This type of debt can create financial hardship because it’s high-interest debt. As a credit card balance rises and interest charges pile up, tackling the debt can be more challenging. How much credit card debt does the average American have? It may be more than you realize.

The average U.S. household has $6,473 in credit card debt

Many Americans use credit cards to pay for purchases, and it turns out many have outstanding account balances. According to data from Experian, the average American’s credit card balance in the third quarter of 2021 was $5,221.

The Ascent examined research on American credit card debt and found that Americans had $841 billion in credit card debt in 2022. When considering the most recent U.S. credit card debt statistics and household data, the average American household has about $6,473 in credit card debt.

While it can be convenient to use credit cards, it’s risky to carry a balance. Unless you have a 0% APR credit card, you’ll be charged interest on your unpaid debt, and your debt will continue to grow until you pay it off. Plus having significant debt can hurt your credit score.

Three tips to pay off your credit card debt

If you’re among the masses of Americans struggling with credit card debt, you’re not alone. Even if you have a lot of it, you can get out of credit card debt. Here are a few tips that may help you pay off your credit card debt faster:

1. Figure out how much debt you have

If you have credit card debt, it’s best to be honest with yourself. While it can be upsetting realizing that you’re in a difficult financial situation, it doesn’t benefit you to ignore your debt. It will only continue to grow as you ignore it.

To pay off your debt, you’ll need to be aware of how much debt you have. Now is a great time to sit down and calculate your total debt. Take note of each card’s balance and interest rate. Doing this will make it easier for you to create a debt payoff plan.

2. Focus on the highest-interest debt first

The debt avalanche method can help you save on interest charges when paying down debt. With this debt payoff method, you’ll focus on putting more money toward the highest-interest debt. While following this strategy, you’ll want to continue making at least the minimum payment amount on all of your credit cards. By putting extra money toward the highest-interest credit card, you will save money in the long run.

3. Consider using a balance transfer card to save on interest

If you have a lot of outstanding debt and it feels overwhelming, you may consider applying for a balance transfer credit card. Many of the best balance transfer credit cards offer a 0% interest rate on balance transfers for 18 months or more, which gives you time to pay off the entire balance without paying additional interest charges.

You’ll be charged a balance transfer fee to transfer your existing balance. These fees typically range from 3% to 5%. If you’re transferring $7,200 in debt and are charged a 5% balance transfer fee, you’ll pay $360 in fees. But that’s not a bad price to pay for 0% interest. With the transferred balance plus the balance transfer fee, you’ll have $7,560 in debt to pay off. If you pay $420 monthly for 18 months, you can pay the entire debt off in a year and a half.

Don’t ignore your debt

Don’t be embarrassed about your credit card debt. But make a plan to pay it down as quickly as possible so you don’t continue to pay expensive credit card interest. You’ll be more able to focus on other financial goals once you eliminate your credit card debt. For additional money management tips, check out our personal finance resources.

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 

With Amazon Prime, you get access to a large number of benefits. Read on for some that many people don’t take advantage of. 

Amazon Prime is a great way to save money on shipping costs, enjoy popular movies and shows, get exclusive deals, and otherwise stick to your budget. But with so many features, it can be hard to keep track of everything that’s available. Here are seven perks of Amazon Prime that you might not be taking advantage of.

1. Rx Savings

With Rx Savings from Amazon Prime, members get access to discounted prices on prescription drugs at over 60,000 participating pharmacies including Walgreens, CVS, and Amazon Pharmacy. This includes savings on brand name and generic medications — all without any hidden costs or additional fees.

2. Amazon Music

Amazon Music gives you unlimited access to over 100 million songs, including thousands of playlists and different radio stations. Whether you’re looking for current hits, classic rock, or something more obscure, Amazon Music has it all. Plus, with Prime Music, you can listen to ad-free podcasts as well as download songs and albums for offline listening!

3. Prime Reading

Do you love reading? With Prime Reading, you get access to over a thousand books including bestsellers and new releases — all at no additional cost. It’s included with your Amazon Prime membership. You get unlimited access to a rotating catalog of ebooks and audiobooks, one free pre-release ebook every month from editors’ picks, as well as all the magazines and comic books you can read!

4. Prime Gaming

If you’re an avid gamer, then Prime Gaming is for you! Amazon Prime members qualify for free games and in-game loot every month. You get to keep the games forever, even if you are no longer a Prime member. You also get a free subscription of Twitch.tv, a popular live streaming gaming and entertainment service.

5. Amazon Photos

Prime members get unlimited full-resolution photo storage and 5 GB for video. The Amazon Photos app allows users to back up their photos from their device directly into their account with just one click. The app also helps users find photos quickly by automatically tagging them based on what appears in the photo (e.g., people’s faces). This way they can easily organize their photos into albums and share them with friends and family. Plus all your photos are stored securely in the cloud, so they won’t be lost if something happens to your device!

6. Prime Try Before You Buy

As part of the Try Before You Buy program from Amazon Prime, members can try out six outfits before purchasing them — for free! You get to select from great brands in clothing, shoes, jewelry, and accessories. You have seven days for the try-on period and are only charged for what you keep. For the items you don’t want, you can choose how you want to return them.

7. One year of free Grubhub+

Are you always ordering takeout? With Grubhub+ via Amazon Prime, members get one year of free delivery when they order food through Grubhub. You can enjoy unlimited $0 delivery fees on eligible orders from your favorite restaurants, exclusive savings, and donation matching. The normal cost is $9.99 per month, so you get a savings of $120 on the membership fee!

There are so many amazing benefits included in an Amazon Prime membership that you may not be taking advantage of! From streaming music services to discounts on medication costs — not to mention exclusive gaming content — there truly is something for everyone when it comes to Prime benefits. So if you are looking for ways to save some money while still enjoying all the latest products available, then signing up for an Amazon Prime account is worth considering today.

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

 Read More 

Electric cars have become increasingly popular, and tax credits are available for them. Find out why I still won’t be purchasing one in the near future. 

Electric cars have become more popular in recent years as newer models have hit the market. The federal government is now offering tax credits to buy certain electric vehicles as well, which means the purchase won’t do as much damage to your checking account since it’s subsidized.

Despite the planet-saving benefits electric vehicles can offer, I will not be buying one anytime soon. And there are three big reasons why that’s the case.

1. There are not many good used ones

In my family, we almost always buy used cars for several reasons. We know that a new vehicle loses a lot of value quickly and we don’t want to take that financial hit. Used cars also generally have lower costs — including purchasing costs and auto insurance costs — compared with brand-new ones. We prefer to spend our money on other stuff rather than vehicles because we aren’t really car people.

It also costs a lot more to add options to a brand-new car than to buy a used one that has them already. For instance, rear-seat DVD players may make a used car worth a tiny bit more money (if it even increases the price) but to add that as a feature to a new car usually costs thousands directly from the manufacturer. So, we’d rather get a car with more options for less money.

Unfortunately, since electric vehicles are newer to the market and people tend to keep them for a while, there are not a lot of used ones available. This makes it harder to find a vehicle that’s been pre-owned and raises the price of the existing used ones out there due to low supply and high demand.

Since I can’t get a good deal on used electric vehicles and probably won’t be able to for a while, I’d rather avoid them entirely.

2. Most electric vehicles are not big enough for my family

We have two kids in car seats, a dog, and a large wagon stroller — and we often drive grandparents around with us. As a result, we need a very large vehicle. We currently have one of the full-sized SUVs in the extended model because even minivans won’t work for us in terms of size (with the car seats and the third-row seats up for the grandparents, we have no place to put the stroller or the dog!)

There are no electric vehicles in the size we need and there aren’t really any prospects of such a large electric SUV coming anytime soon.

3. We like to take long road trips often

Finally, the last big issue is that we take very long road trips on a regular basis. We drive between Florida and Pennsylvania a few times a year, and we also go camping all summer to various far-flung destinations. We don’t want to have to worry about sitting and waiting for our car to charge, or finding a charger while in the middle of nowhere while we’re on the road.

For all of these reasons, electric cars just won’t work for our lifestyle — even though I sometimes wish they would so we could cut our gas costs and get a tax break for our vehicle purchase.

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 

It’s not a great idea to leave yourself with a Venmo balance. Read on to see why. 

Payment apps like Venmo make it easy to send money to different people, split bills at restaurants, and engage in different financial transactions. And a recent Pew Research Center survey found that 38% of U.S. adults use Venmo.

But while there’s no question that Venmo is convenient, one thing you don’t want to do is leave a sum of cash just sitting in your Venmo account. Here’s why.

You deserve to earn a return on your money

When you put money into a savings account while you’re not using it, it has the potential to earn interest. And these days, savings accounts are paying rather generously. A number of high-yield savings accounts are offering upward of 3% interest, and some are even offering 4% or more.

That’s why you’re better off having your cash hang out in the bank rather than a Venmo account if you don’t need it right away. Even if you only keep your money in a savings account for a month or so before withdrawing it, you’ll still have an opportunity to earn some amount of interest on it. And you might as well collect that interest rather than give it up.

You don’t want to fall victim to temptation

It’s easy to look at the money in your Venmo account as bonus money, so to speak. There’s just something about money not being in an actual bank that has the potential to change your mentality. That’s not a good thing, though, because in that case, you might end up blowing the money in your Venmo balance rather than putting it to good use.

Let’s say your Venmo balance is $0 and you stumble upon a street fair where crafts are being sold. You might come across a $30 item you like, and the vendor might accept Venmo. But at that point, you’ll need to stop and think about whether you really want to spend $30 on an item you weren’t planning on buying.

On the other hand, if you have $30 in your Venmo account, you might, in this scenario, just say to yourself, “Well, the money is just hanging out there, so I might as well spend it.” But that’s not necessarily the right move.

Get your money out of Venmo

There’s nothing wrong with using Venmo when you need to, or allowing people to pay you via Venmo when you’re owed some cash. But as a general rule, it’s a good idea to immediately transfer money you receive in Venmo out of there.

You can move funds from Venmo to your linked checking account without paying a fee if you’re willing to have it take a few days (you’ll generally pay a fee for an instant transfer). And from there, you can use that money to pay bills or spend it as you normally would.

Of course, if you know you have a payment due in a few days that you’ll be sending via Venmo, then it’s okay to leave that sum in your account. But otherwise, do yourself a favor and aim to keep your Venmo balance at or around $0.

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.The Motley Fool has a disclosure policy.

 Read More