Money Management

Inflation is slowing down. Read on to see how that might help borrowers with outstanding HELOC balances. 

Inflation has been a problem since the latter part of 2021. And since then, many consumers have been forced to dip into their savings accounts and rack up balances on their credit cards just to stay afloat.

But Consumer Price Index (CPI) data from March reveals that inflation has finally started to cool to a really notable degree. And that could spell particular relief for borrowers with outstanding home equity line of credit (HELOC) balances.

Inflation is finally cooling

In March, the CPI rose 5% on an annual basis. That’s far from what’s considered a normal or moderate rate of inflation. But it’s a big improvement from mid-2022, when annual inflation was a whopping 9.1%.

In fact, March’s CPI reading was the lowest level we’ve seen since May 2021. It also represents nine consecutive months of declining annual inflation.

What does that have to do with HELOCs? It’s simple. Since early 2022, the Federal Reserve has been raising interest rates in an effort to bring the rate of inflation down. But those interest rate hikes have driven up the cost of consumer borrowing. So over the past year and change, it’s gotten more expensive to take out an auto loan, home equity loan, or personal loan.

Meanwhile, certain types of debt come with variable interest rates. Credit cards are one of them. So are HELOCs. This means that if you owe money on a HELOC, your interest rate has the potential to climb over time, making your debt more expensive.

The Fed, however, might end up so pleased with March’s CPI reading that it opts not to raise interest rates at its next meeting. So far, it has already raised interest rates twice this year. If the Fed hits pause on its interest rate hikes, HELOC borrowers may not see such a drastic spike in their payments.

Is now a good time to take out a HELOC?

Because borrowing rates are up across the board right now, it’s generally not a great time to borrow money, period. And that extends to taking out a HELOC.

What’s more, HELOCs can be a riskier way to borrow money because you’re not locking in a fixed interest rate. So your monthly payments under a HELOC have the potential to rise over time, making them less affordable.

That said, property values are still elevated in most U.S. markets. And if you’ve been in your home for a long time, you may, at this point, have a nice amount of equity built up.

So if you’re looking for a way to borrow against that equity, a home equity loan may be a better bet. This way, you’ll sign a loan with a fixed interest rate so you’re assured that your monthly payments won’t rise as you’re trying to get that debt paid off.

Of course, if you can avoid borrowing money right now, that may be your best bet. But if that’s not possible, then you may want to borrow in a manner where at least your interest rate is locked in.

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Insiders are often great sources for the real dirt on many companies. Here’s one insider’s experience with the best and worst pet insurance companies. 

The pet insurance industry has grown by leaps and bounds over the past decade or so, and there are more companies than ever offering coverage for your furry family members. But how do you know you’ve picked a good company?

Unfortunately, it’s often not until you file a claim that you get to find out whether you chose wisely — or very, very poorly.

That’s why we love coming across industry insiders willing to spill the tea on the companies they’ve worked with day in and day out. Like this video, where @tired.all.the.time87 — a former veterinary assistant — gave her opinion on the best and worst pet insurance companies.

High costs, stingy coverage, and defaulted claims

So, which companies does this insider say to avoid? According to the video, both Healthy Paws and Lemonade earned a “buyer beware” from the former vet assistant.

“Stay far, far, far away from Healthy Paws and Lemonade,” she warned.

While both companies advertise low rates, she said, they have a very small range of covered services. They also have very high deductibles, which means more money out of your pocket before you can get reimbursement. (Most pet insurance works on a pay first, claim later system, so you pay out of pocket then get reimbursed later.)

That’s not the worst of it, however. The video calls out Healthy Paws for some very unscrupulous behavior.

“Healthy Paws likes to default on claims,” she said. “Sometimes they will just sit and wait until your claim defaults, then they won’t cover it because it ran out of time. And it’s usually on their end — they do it on purpose.”

Bad insurance company. No treat for you.

Now, to be fair, there were a number of people in the comments who stood up for Healthy Paws and Lemonade alike. More than a dozen, in fact, all saying they’ve had claims reimbursed without issue. So like anything else on the internet, take both sides with a grain of salt.

Low deductibles, broad coverage, and quick turnaround

Of course, the video wasn’t all doom and gloom. Our friendly host also gave her two cents on the best pet insurance companies. In particular, she had some great things to say about these companies: Trupanion and Nationwide.

While the two companies tend to have higher monthly rates, she said, their deductibles are much lower. They also have a wider range of covered services. Plus, these companies received good marks for reimbursing claims in a timely manner.

“They have a really quick turnaround rate for reimbursement,” she confirmed. “Typically, I would see my clients get reimbursed within a couple of weeks.”

The comment section seems to heartily agree with her recommendations, too. Dozens of commenters — including a few other industry professionals — chimed in to say they’ve had great experiences with both companies.

Having issues? File an official complaint

Perhaps one of the most important mentions in the video’s comment section was a reminder that the insurance industry is subject to extensive government regulation. Specifically, insurance is regulated by the states.

This means if your pet insurance company isn’t operating in good faith, you can file a complaint with your state’s insurance regulation office. (Simply search your state and the words “insurance complaint,” and you should find your way to the right place.) It will then investigate your complaint. If your state’s regulation office finds that the company didn’t meet its legal obligations, it can require corrective action.

In the end, you’ll have to make your own choices about which pet insurance company to trust with your pet’s healthcare needs. For every complaint about a company, there are usually happy customers who simply haven’t felt the need to raise their voices about it. Do some investigating on your own — such as asking staff members in your own vet’s office, asking other pet parents, and reading a variety of reviews — before making a decision.

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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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Wondering when your tax refund might come in? Read on to find out what you need to know. 

Filing taxes can be a lengthy and sometimes stressful process. But for many people, there’s a huge upside — collecting a tax refund.

Tax returns were due this year on April 18. So if you submitted yours on that day exactly, you may be wondering when you can expect your refund to hit your bank account.

Normally, the IRS turns refunds around in less than 21 days. But in some cases, your refund might take longer to process.

Have realistic expectations

If you filed your taxes on April 18 and are thinking you’ll see your refund by the 19th or 20th, think again. The IRS needs some time to process your return and issue your refund, so you generally should not expect to see that money within days.

A more realistic approach is to assume that your refund will arrive within three weeks of having submitted your return. So if you filed your taxes on April 18, you should anticipate having your refund by May 9.

However, there are certain factors that could delay your refund. One of them is filing a return on paper. In that case, the IRS says it could take four weeks or more to process your refund. In recent years, refunds for paper returns have been notoriously delayed as the agency has experienced backlogs and staffing shortages stemming from the pandemic. So that four-week time frame may be a generous estimate.

The IRS is still in the process of ramping up staff as part of the $80 billion in funding it got under the Inflation Reduction Act. But that may not lead to faster turnarounds for paper returns this filing season. So if you’re not submitting your taxes electronically, assume your refund will take at least twice as long to process as a refund for a return filed using software.

Another reason your tax refund might be delayed? An error on your tax return. Certain mistakes, like entering the wrong Social Security number, might cause the IRS to reject your return, leading to a longer turnaround time.

Similarly, the IRS might have questions about your return that it needs addressed before your refund can be processed. If that’s the case, the agency will send you a letter by mail asking for more information. The sooner you respond, the sooner you can expect your refund — but you might face an initial delay.

You can check up on your tax refund

Whether your tax refund amounts to a few hundred dollars or a few thousand, it’s natural that you’d want that money as soon as possible. If you want to check on the status of your refund, you can use this IRS tool to get more information. Keep in mind you’ll need to wait a good 24 hours after filing your return electronically to get an update.

You may also be inclined to contact the IRS if your refund is taking longer than expected to arrive. Before doing so, though, it could pay to use this tool to get an update, as it may prove to be less time-consuming and frustrating than waiting on hold to speak to an agent.

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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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