Money Management

Debt is one of the great sources of stress in life. Check out four strategies to help busy moms jettison their debt and get on with life. [[{“value”:”

A 2022 survey by Capital One found that 73% of individuals identified their finances as a major contributor to their stress levels. If you’re part of that 73%, and if the cause of your stress is debt, don’t despair. Debt is a temporary situation. Here are four methods that can help you whittle your balances down to zero without demanding too much of your time. After all, you have better things to do than worry about debt.

1. Avalanche method

The debt avalanche focuses on paying off debts with the highest interest rates first. Here’s how it works:

Make a list of your debts, how much you owe, and the current interest rate on each, from highest to lowest.Take a look at your budget and bank account to determine how much extra you can put toward your debt each month. For the sake of this scenario, let’s say you can budget for an extra $100.Pay bills as usual. However, when it’s time to pay the debt with the highest interest rate, add the extra $100 to your payment. Let’s say your “regular” payment on this debt is $150. Instead of $150, you’ll make a payment of $250. The extra $100 will go directly toward the principal.Once that debt is paid in full, go on to the next debt on the list. Now, you’ll make your regular payment to that creditor, plus the $250 that you’ve been paying toward the first debt.As soon as the second debt on the list is paid off, move on to the third. Make your regular monthly payment, plus the $250 you’ve been paying toward the first debt, and add the amount you were paying toward the second debt.

The avalanche method picks up steam with each debt, making it one of the best strategies in personal finance. However, if you’re afraid you’ll lose motivation waiting for the first debt to be paid in full, you may prefer the next method.

Tip: Remember to stay current on each of your debts, even if you’re only focusing on one at a time.

2. Snowball method

Another way to tackle debt is the debt snowball method, a strategy that focuses on paying off the smallest debt first while making minimum payments on the larger debts. Once you’ve paid off the smallest debt, take the money you were paying toward it and apply it to your next smallest debt.

Here’s an example: You have a credit card with a balance of $500, another with a balance of $700, and a third with a balance of $4,000. Make the minimum payments on all three cards, but put any extra money you have toward the card with the $500 balance. Once it’s paid off, focus on the $700 debt. Only now, you have the money you were paying toward the $500 debt to add to your regular monthly payment.

Tip: A debt payoff app may help you keep track of those debts as the balances drop.

3. Debt consolidation

Debt consolidation involves taking out a single loan to pay off multiple higher-interest debts. Imagine that the average interest rate on your existing debts is 17%, but you qualify for a personal loan with an interest rate of 12%.

By taking advantage of a personal loan with a lower interest rate, you can pay off your existing debt and are only responsible for repaying the loan. Better yet, since you’re paying a lower interest rate, you’ll save money and will likely get rid of the debt at a faster clip.

To land a personal loan with a good interest rate, you normally need a good credit score. If your credit score has taken a hit, you may want to consider the next option.

4. Debt management plan

If you’re at wit’s end and your credit score is shot, a nonprofit credit organization like the National Foundation for Credit Counseling (NFCC) may be able to help. After a phone call with an NFCC Certified Counselor, you’ll be armed with an actionable plan to get rid of your debt.

Typically, this plan involves debt management. With a debt management plan (DMP), an NFCC member agency negotiates with your creditors. By partnering with reputable agencies, NFCC can help consolidate debt, offer a repayment program you can afford, and negotiate payment terms with your creditors. Once agreements are in place, you make a single monthly payment to the member agency, which then uses the funds to repay your debts.

As you decide which strategy is right for you, it’s important to keep in mind that a DMP can affect your credit score. It’s quite possible that your credit file will indicate you’re enrolled in a DMP, which in turn could make it more difficult to get credit while in the program. However, if your score is already low, you have nowhere to go but up. As long as you stay current with your DMP payments, having a DMP reported to the credit reporting agencies will look better than ongoing late or unpaid debts.

When humans feel stressed out, our brains don’t function as they should, and it’s possible to believe that our current situation will last forever. Nothing could be further from the truth. For debt, it’s only a matter of time until you can look at it in the rearview mirror. You just need to pick a payoff strategy that works for you.

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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.Dana George 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.

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Travelers booking with low-cost carrier Spirit Airlines will no longer be subject to change or cancel fees. Learn what to expect before your next flight. [[{“value”:”

Spirit Airlines is an airline known for its low-cost flights. While its ticket costs are often more affordable than those of other competitors, it charges fees for extras beyond the ticket itself. You’ll pay more to choose your seat, bring a carry-on bag, or check one or more bags. But the airline recently announced a change that will save some flyers money on fees. Change and cancellation fees are now a thing of the past. Here’s what you need to know.

These fees are being eliminated for all flyers

Until recently, Spirit Airlines charged fees when passengers changed or canceled a flight. But that’s no longer the case. The airline’s website now includes a banner that reads, “Book Now With No Change or Cancel Fees.” This is welcome news for busy travelers’ wallets.

Here’s what travelers can expect when making flight changes or cancellations with Spirit:

When making flight changes: No fees will be charged when making changes. Travelers will only be responsible for paying the difference in airfare.When canceling flights more than 24 hours after booking: Travelers will be issued a Reservation Credit valid for one year. This credit can be used by anyone linked to the original reservation and can be used for airfare and extras like seats, bags, and taxes.For flights canceled less than 24 hours after booking, a refund will be issued to the original form of payment.

This news follows recent ticket pricing and fee updates from Frontier Airlines, another low-cost carrier. Frontier updated its ticket pricing structure to be more transparent. The airline also eliminated change and cancellation fees for most fares. However, change and cancellation fees still apply to Frontier’s Basic Fare tickets, the cheapest fare available.

Why this is good news for travelers

These changes are good news, especially if you plan to fly with Frontier or Spirit this summer.

Every extra fee impacts your personal finances. Life is busy, and your plans can change at any time. You can feel more confident when booking flights with Spirit Airlines, knowing that if your plans change, there won’t be negative financial consequences.

Other fees are here to stay when flying with Spirit

While some fees have been eliminated, flyers should know that Spirit Airlines will continue charging other fees. Exact fees vary depending on the route, date, and travel time. But you can expect to pay extra for anything beyond the initial ticket price.

Spirit has an optional service section on its website that you can use to estimate fees before flying. All you have to do is enter your flight details to get a breakdown of the fees you’ll pay.

To provide more insight, I researched fees for a July 2024 trip from Philadelphia to Austin:

Carry-on bag fee ranges from $38 to $79 per one-way flight.The cost of a first checked bag ranges from $33 to $79 per one-way flight.

Bag fees vary depending on when you pay for the bag and whether you’re a Spirit Saver$ Club member. This membership offers fare discounts and other perks for a fee of $69.95 per year.

Seat assignment fees start at $5. You can expect to pay more for seats with more legroom.

Don’t ignore extra airline fees

It’s essential to consider all costs associated with a trip before taking a vacation. This way, you can outline a realistic vacation budget and set aside enough money in your high-yield savings account to prepare accordingly. It’s never a good idea to spend beyond your means. Otherwise, you could risk racking up expensive credit card debt.

If you use travel credit cards to earn rewards on your travel spending, the best strategy is to pay the entire balance in full to avoid interest charges. I like to save up for trips well before taking them to stay debt free while I continue to explore the world. I suggest taking a similar approach.

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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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Want to fly to more countries? See the best airlines for international travel based on the number of countries, destinations and global networks. [[{“value”:”

International travel is a must-have life experience for millions of Americans. Whether you’re visiting another country for the first time or you’re a veteran globetrotter, it feels good to get your passport stamped in a new place.

But which airline should you choose for your next international trip? Let’s look at a few popular U.S. airlines to see which ones fly to the most countries.

1. United Airlines: 67 countries

United Airlines is the world’s largest airline by available seat miles and describes its network as “the most comprehensive global route network among North American carriers.” Basically, wherever you want to fly, United Airlines can help you get there — or at least get closer.

United Airlines offers nonstop flights to 67 countries and 134 international destinations, with more flights to destinations across the globe than all other U.S.-based airlines put together. If you want to fly to Europe, Asia, South America, or anywhere else in the world, United Airlines’ website could be a good place to start your search for flights.

United Airlines is also a founding member of Star Alliance, a group of 26 international airline partners serving 195 countries. So in case United can’t get you where you want to go, one of its international partner airlines probably can. Star Alliance partner airlines include:

Air IndiaAir New ZealandANA (Japan)Asiana Airlines (South Korea)Ethiopian AirlinesLufthansa (Germany)Singapore AirlinesTAP Air Portugal

If you sign up for the United MileagePlus® frequent flyer program, you can earn and redeem United frequent flyer miles on any Star Alliance partner airline. This gives you more reach to travel to other countries — and more value for your spending with United Airlines credit cards.

2. American Airlines: 60 countries

American Airlines is a close second in the rankings of which U.S. airlines fly to the most countries. It flies to more than 60 countries and 350 destinations (including the U.S.).

Some of American Airlines’ newest international destinations include:

Copenhagen, DenmarkNice, FranceNaples, ItalyOcho Rios, JamaicaTulum, Mexico

Like United Airlines, American Airlines is also a member of a larger international partner network that can take you to even more countries. The oneworld® Alliance includes 13 member airlines, serving more than 170 international territories and more than 900 global destinations. If you join AAdvantage® (the American Airlines frequent flyer program), you can earn and redeem your American frequent flyer miles on any oneworld® Alliance airline.

Partners in the oneworld® Alliance include:

British AirwaysIberia (Spain)Japan AirlinesQantas (Australia)Qatar Airways

If you’re a serious global traveler and want to earn discount flights or free upgrades on as many airlines as possible, it could be worth getting an American Airlines credit card.

3. Delta Air Lines (50 countries)

Delta Air Lines doesn’t have quite as wide of an international reach as American Airlines or United, but it’s not too far behind with service to 50 countries. And through its partnerships with other international airlines, Delta Air Lines can help you get to a total of 60 countries, six continents, and 1,000 destinations.

Delta Air Lines partners include:

AeromexicoAir FranceKLM (Netherlands)Korean AirLATAM (South America)

You can earn and redeem Delta SkyMiles® with Delta’s partner airlines. This is another reason why Delta Air Lines credit cards can be a good value — you don’t just earn frequent flyer miles for Delta flights; you can redeem those miles for award travel with more than 20 partner airlines.

Other airlines for booking international travel

United, American, and Delta are the three biggest U.S.-based airlines, and they have the largest international networks. If you want to fly to another country, you can often find tickets by starting with those “big three.”

But there are other options that can take you to other countries, sometimes at a more affordable price.

JetBlue Airways (30 countries)

JetBlue offers international flights to 30 countries, including Canada, Mexico, several countries in the Caribbean, France, Ireland, the Netherlands, and the United Kingdom.

Southwest Airlines (11 countries)

Southwest Airlines is one of the four largest U.S. airlines, but it hasn’t been known as a major player in international travel. However, Southwest offers flights to a total of 11 countries, including Mexico, Jamaica, Belize, Costa Rica, and the Dominican Republic.

International airlines

As an American air traveler, don’t assume that you should fly only on U.S.-based airlines. Most other international airlines can give you the same (or better) customer service, and you might even find better prices and adventurous deals.

I’ve personally flown on (and had a great experience) with Asiana Airlines, British Airways, Iberia, Japan Airlines, Lufthansa, TAP Portugal, and others. Flying with Asiana gave my family an adventurous layover at the impressive Seoul Incheon Airport. Iberia gave us the occasion for a delightful overnight stopover in Madrid, and TAP Portugal let me see the gorgeous city of Lisbon for the first time.

Your choice of airline can be part of the spirit of discovery that international travel is all about!

Bottom line

The best airline for international travel often depends on where you want to travel and when you want to go. If you’re a frequent international traveler or digital nomad, you might want to use travel rewards credit cards. The best travel credit cards give you points and miles that you can transfer and redeem for cheap international travel — making any airline the “best” for your travel goals.

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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.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool recommends Delta Air Lines, Discover Financial Services, Flow, and Southwest Airlines. The Motley Fool has a disclosure policy.

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CDs make a lot of sense right now. But read on to see why it’s important to keep some of your cash in a regular savings account, too. [[{“value”:”

The Federal Reserve implemented a series of interest rate hikes in 2022 and 2023 in an effort to slow inflation down. And the central bank’s efforts have worked to some extent. Although living costs are still up, the pace at which they’re rising isn’t as extreme as it was back in 2022.

Unfortunately, the Fed’s numerous rate hikes have made it more expensive for consumers to borrow money, whether in loan or credit card form. But on the plus side, savings accounts and certificates of deposit (CDs) are now paying more generously following those rate hikes.

It’s an especially appealing time to put money into a CD, with rates being at or above 5% for many of these products. But while today’s CD rates might inspire you to put all of your cash into a CD, that’s a move you might sorely regret.

Don’t risk an expensive penalty

Today’s CD rates aren’t going to stick around forever. Once the Fed starts lowering rates, which is expected to happen later this year, CDs are bound to start paying less. Because of this, you may be inclined to put all of your money into a CD while rates are high. But doing so could backfire on you in a very serious way.

When you cash out a CD before its maturity date arrives, you generally face a costly penalty, the exact amount of which will depend on the bank you use and the term length of your CD. For example, the penalty for cashing out a CD with a term of 12 months or less could be three months of interest, regardless of when you redeem the CD prior to maturity.

So let’s say you open a $5,000, 12-month CD at 5%. If you cash it out before the one-year mark, you’re looking at a penalty of $62.50. And while you could argue that that’s not a catastrophic amount of money to lose, imagine if you decide to open that same CD with $25,000. In that case, you’re looking at a penalty of $312.50 for an early cash-out. So it’s important to be careful either way.

Make sure to leave yourself ample funds for emergency savings

Tempting as it may be to throw all of your money into a CD right now, you never know when you might need the cash to cover an unplanned expense. So it’s important to keep some money in a regular savings account for emergency fund purposes.

Specifically, keep at least enough cash to cover three full months of essential bills. And if you have other potential expenses on your radar, add to that three-month total to cover those, too. For example, if you’ve been told you’ll need to replace a certain car part in the near future at a cost of $800, keep enough cash on hand for three months of essential expenses plus the $800 needed to make sure your car can run.

Capitalizing on today’s CD rates makes a lot of sense. But it doesn’t make sense to tie up all of your money in a CD and risk having to pay an expensive penalty as a result.

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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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