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Debt Management Strategies: Select the Best One for You

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Debt Management Plans: Choose the Best One for You

Find out about different debt management plans' features and prices to find the right fit.

Written by Sean Pyles Senior Writer | Personal finance and financial debt Sean Pyles leads podcasting at NerdWallet as the host and producer of the NerdWallet's "Smart Money" podcast. The show "Smart Money" Sean talks with Nerds across NerdWallet's NerdWallet Content team to answer listeners' personal finance questions. With a focus on shrewd and actionable money advice, Sean provides real-world guidance to help people improve their financial lives. In addition to answering listeners' financial questions on "Smart Money," Sean also interviews guests who are not part of NerdWallet and also creates special segments that explore subjects such as the racial gap in wealth as well as how to get started investing, and the background of student loans.

Before Sean took over podcasting at NerdWallet the company, he also wrote about topics that dealt with consumer debt. His work has appeared throughout the media including USA Today, The New York Times and other publications. When he's not writing about personal finances, Sean can be found playing in his garden, taking runs and taking his dog on long walks. Sean is located in Ocean Shores, Washington.

Updated August 17, 2021, 9:47PM PDT

Written by Kathy Hinson Lead Assigning Editor Personal financial, credit scoring, financial management and debt Kathy Hinson leads the Core Personal Finance team at NerdWallet. In the past, she worked for 18 years at The Oregonian in Portland in capacities such as chief of the copy desk and team leader for design and editing. Her previous experience includes copy and news editing for a variety of Southern California newspapers, including the Los Angeles Times. She earned a bachelor's degree in mass communications and journalism from Iowa's University of Iowa.

A majority of the items featured on this page come from our partners, who pay us. This influences which products we write about and where and how the product appears on a page. However, it does not influence our evaluations. Our opinions are our own. Here is a list of and .

Are you feeling overwhelmed by debt? A debt management strategy could be the answer.

This tool for debt repayment puts you in a position to settle your debts -- typically from credit cards -- over three to five years. With the help of a DMP it is possible to have multiple debts rolled into one monthly payment, which reduces your interest rate. In exchange, you sign a payment plan that usually lasts between three and five years. Be aware that interest rate reductions are standard throughout credit counseling organizations, based on your creditors guidelines as well as your budget.

Here's a comparison of the debt management programs at a major nonprofit .

Agency / availability

Average fees

It is available in all 50 US states.

A startup charge of $31 is included.

$20 monthly fee

All states are available, with the exception of Minnesota

$42 startup fee

Monthly fee of $30

The 50 States are represented as well as Puerto Rico

Start-up fee of $24.

A monthly payment of $28 is charged.

It is available in all 50 US states.

$35 for the initial fee

Monthly fee of $29

In 50 States

$35 for the initial fee

$24 monthly fee

Debt management plans: Pros and pros and

Pros:

You can cut the interest rate by half or more.

Aids in paying off debt faster rather than making it your own.

Consolidates debts from several creditors into one payment.

Cons:

Is mostly intended for debts incurred through credit cards; cannot be used to finance student loans, medical debt or tax obligations.

Takes three to five years, and generally, you're not able to make use of credit cards or get new lines of credit when you're in the plan.

In the event of a missed payment, it could derail the plan and stop your interest rate cuts.

It's time to cut your debt

Join the link to sign up and keep track of everything from credit cards to mortgages in one place.

Do you think a debt management program is suitable for you?

DMPs aren't for everyone. According to the agency, about 10 percent up to 20 percent of customers are able to avail this option for debt relief. Of those who choose to, approximately 50% - 70% of them complete the plan, depending on the year and the way the agency reports the completions.

You may want to consider a DMP If:

Unsecured debt, such as from credit cards, is between 15% to 39 percent of your earnings.

You earn a steady salary and think you could repay your debt in five years if you had an interest rate that was lower.

You are able to get by without opening up new credit lines when you're using the plan.

Alternatives to a debt-management plan

DMPs may not be the best option for you . Problem debt from student loans and medical expenses typically aren't covered by such plans. Other optionsinclude:

If your debt problem is not more than 15% of your annual income, you could take a DIY method using the method.

A , if you have adequate credit to be eligible you can also combine debts together at an interest rate that is lower. You control how long the loan is, and you retain the ability to open additional credit lines.

may be better if your debt is more than 40 percent of your income and there is no option to pay it off within five years. This debt relief tool can rapidly give you a new start. Consumers have credit scores that begin to rebound in as little than six months.

What are the things you'll need to do to do

If you think a DMP may be your best option for debt relief, you should start with . Consider:

Certification and accreditation: Look for an agency which is part of the . They require agencies to be accredited by an independent organization, and both require certification as well as an established standard of excellence among counselors.

Access: Ask yourself what you'd like to receive services: by phone, in person , or online.

Cost: Fees vary by agency as well as the state you reside in and your financial need. Before signing up, you should know the amount you'll be paying each month to your debt and in fees.

The author's bio: Sean Pyles is the executive producer and host of NerdWallet's Smart Money podcast. His work has appeared on The New York Times, USA Today and elsewhere.

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What to know about switching co-signers on a car loan Part Of Financing a Car With a Co-Signer In this series Financing a Car With a Co-Signer Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our mission is to help you make smarter financial decisions by providing you with interactive financial calculators and tools that provide objective and original content. This allows users to conduct research and compare information for free - so that you can make financial decisions with confidence. Bankrate has partnerships with issuers including, but not limited to American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn Money The products that are featured on this site are from companies that compensate us. This compensation could affect how and where products appear on this website, for example such things as the sequence in which they appear within the listing categories and other categories, unless prohibited by law. This applies to our mortgage home equity, mortgage and other products for home loans. But this compensation does affect the information we publish, or the reviews appear on this website. We do not cover the universe of companies or financial offers that may be available to you. SHARE: Tony Anderson/Getty Images

2 min read published September 12, 2022

Written by Mia Taylor Written by Contributing Writer Mia Taylor is a contributor to Bankrate and an award-winning journalist who has two decades of experience and worked as a staff reporter or contributor for some of the nation's leading newspapers and websites including The Atlanta Journal-Constitution, the San Diego Union-Tribune, TheStreet, MSN and Credit.com. Written by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate since late 2021. They are committed to helping readers to manage their finances with concise, well-studied information that breaks down complex topics into manageable bites. The Bankrate guarantee

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We are compensated in exchange for the promotion of sponsored goods and, services, or through you clicking certain links posted on our site. This compensation could impact how, where and in what order items are displayed within the categories of listing in the event that they are not permitted by law for our loan products, such as mortgages and home equity, and other home lending products. Other factors, such as our own website rules and whether the product is available within your area or at your personal credit score may also influence the manner in which products appear on this site. While we strive to provide a wide range offers, Bankrate does not include specific information on every credit or financial products or services. It may appear to be the best idea in the beginning however, in certain instances the plans might not go as planned. There could be a conflict between principal co-signer and the borrower could be strained, or the finances of the co-signer may alter and in turn co-signer may want to get out of the deal. Although it is possible to withdraw from the loan, simply changing one co-signer to an additional one on the initial loan is not likely. The procedure is more complicated and can require refinancing the loan and completing the co-signer release documents or paying off the loan completely to end the involvement of the co-signer. It isn't possible to substitute your current auto loan co-signer. Most lenders will not simply replace a current co-signer with a new one on an existing vehicle loan because it would require that they undergo the approval procedure for the swap . Although it's always a good idea to ask your lender about this possibility, swapping one co-signer to another on an existing loan isn't a common practice. The process typically applies to the terms and conditions of a loan and isn't designed or meant for modifying the parties who agreed to the loan. Refinancing may remove a co-signer on your car loan and allow for a new one Yet another approach to eliminate a co-signer from an auto loan can be to just . In other words, create a new loan that settles the balance of the loan and closes the account. The new loan is able to be opened through a new lender and may be opened without the involvement of the co-signer. In some cases it is possible to open it by the same lender but this isn't always feasible. To accomplish this, however, you need to be able to qualify for the new loan by yourself that requires a great credit score and a track record of paying. If you've been in the process of purchased the vehicle refinancing could provide the chance to get the most competitive interest rate or to modify loan payment conditions. Bankrate tip: If your credit score is not up to par, you might consider finding someone you can are confident in asking them to sign a new loan. Removing the co-signer from your auto loan may be an option Though not all lenders offer this option, it is possible to eliminate a co-signer through making a co-signer release. Contact the lender First step is to connect directly with the lender who has financed the loan and ask if they have a co-signer release option. Fill out the necessary paperwork: If you are offered a release option by the lender provides the option of release it is common to sign a form that removes co-signers of the loan and will make you the principal borrower responsible for repayment of the loan. Only the borrower who is the primary one is able to make this change on the loan. Approval of the lender: There is no guarantee that a lender will accept the release of the co-signer. You will need to prove that you can handle the loan by yourself and have a good credit score and financial resources to continue repayment. When making this type of change, your loan duration could be modified. The removal of a co-signer can impact the interest rate of your loan in particular if the loan was originally granted based on the co-signer's excellent credit. The final word is that switching or eliminating a co-signer from an auto loan isn't as simple or straightforward as it may sound. Most of the time, you'll have to , pay it off altogether or proceed with making a co-signer release- if the lender even allows this option. Think carefully before asking someone to co-sign for a loan for you initially and make sure you choose the person you feel comfortable with. Learn more about

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Written by Contributing Writer Mia Taylor is a contributor to Bankrate and an award-winning journalist who has two decades of experience and worked as a staff reporter or contributor for some of the nation's leading newspapers and websites including The Atlanta Journal-Constitution, the San Diego Union-Tribune, TheStreet, MSN and Credit.com. The article was edited by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate since late 2021. They are committed to helping readers to manage their finances through providing precise, well-studied information that break down complicated topics into digestible pieces.

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Carmax

CarMax: 2023 Auto loan review Published 2023-01-01 00:00:00

Written by Rebecca Betterton Written by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She is a specialist in helping readers in navigating the details of borrowing money to purchase a car.

The edit was done by Rhys Subitch Edited by Auto loans editor

Rhys has been editing and writing for Bankrate since the end of 2021. They are passionate about helping readers gain the confidence to take control of their finances through providing clear, well-researched facts that break down complicated subjects into digestible pieces.

Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our goal is to help you make better financial decisions by offering you interactive tools and financial calculators, publishing original and objective content. We also allow you to conduct research and compare information for free to help you make sound financial decisions. Bankrate has agreements with issuers including, but not restricted to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money The deals that are displayed on this site come from companies who pay us. This compensation can affect the way and when products are featured on this site, including the sequence in which they be listed within the categories of listing, except where prohibited by law. Our mortgage or home equity products, as well as other products for home loans. This compensation, however, does affect the content we publish or the reviews that appear on this website. We do not cover the universe of companies or financial deals that may be available to you.

About our reviews . Editorial disclosure The reviews are written by staff. Opinions expressed therein are solely the views of the reviewer. They have not been reviewed or approved by any advertising company. The information, including rates and fees provided in the review is correct up to the date of the review. Look over the information on the right as well as the lender's website to find the most current information.

A glance 4.0 Rating: 4 stars out five

Bankrate Score

Availability Rating: 4.3 stars out of 5

Affordability Rating: 3.4 stars out of 5

Customers' Experience Score: 4.2 five stars of five

Transparency Rating: 4 5 stars.

Compare rates on auto loan rates

Concerning CarMax Loan amounts $500 to $100,000

Min. credit score Not specified

APR as low as 3.45%

Funds are available as soon as the day that you apply

CarMax provides CarMax provides a one-stop shop for drivers seeking to finance or purchase their car all in one place.

PROS Loans for bad credit loans are available

Convenient shopping

Fast financing decision

CONS Prices are non-negotiable

Inventory is limited

In nine states, it is not available.

CarMax offers drivers across the country who wish to purchase pre-owned vehicles. It offers remote purchasing, providing drivers with the convenience of delivery of their vehicle and financing in one place. You can prequalify for a loan without affecting your credit score, and the majority of loan decision-making is available in five seconds or less. With more than 230 brick-and-mortar locations all over the United States, CarMax is also a great option if you prefer an in-person experience.

Do you qualify? CarMax provides financing for used cars loans through its direct lending platform, CarMax Auto Finance, or through one of its many partners. This means that the requirements differ based on which lender you're matched to. What we like and what don't like Consider the benefits and disadvantages of an loan with CarMax before you submit an application. We like the Bad-credit loans are available. You don't need perfect credit to get financing through CarMax. One-stop shop. You can buy and finance used vehicles all in one spot. Quick decision. Application decisions can take less than five minutes. If you discover an offer that is better than the one you received, you can use the Three-day Payoff Program offered by CarMax. What we don't like Limited vehicle inventory. You must purchase your vehicle through CarMax. No negotiation. While CarMax claims to have no bargaining, it does not mean the price you're offered will be the lowest available price. Unavailable in some states. CarMax does not have store locations across nine states, including Alaska, Arkansas, Hawaii, Montana, North Dakota, South Dakota, Vermont, West Virginia and Wyoming. How to contact CarMax CarMax boasts an easy-to-navigate website and customer service via chat telephone call or an appointments in person. Support for phones is available Monday to Friday between 8 a.m. until 10 p.m. ET and Saturday from 9 a.m. until 6 p.m. ET The app offers support 24 hours a day.

Auto loan types offered CarMax only provides used auto loans for its vehicles. These loans may be made through its direct financing arm or through one partner. This is extremely beneficial for those who are interested in comparing different loan options, especially because these lenders all cater to a wide range of credit profiles to give you a better chance of finding a good suit.

CarMax has partnered with Ally Auto America, a subsidiary of CarMax. Credit Acceptance Capital One Chase Exeter Santander Westlake Financial Services

How do you apply for the loan with CarMax This online process of applying for a loan is easy with CarMax. You can either find a vehicle from its online inventory by looking for a specific type, brand, style or ZIP code and then apply for financing before you go shopping. Either way, take advantage of the CarMax car payment calculator to estimate the cost of your monthly payments. If you're considering trading in your vehicle, CarMax lets you see possible offers in person or via the web. If you'd like to be prequalified first, you can apply for a specific car or a broad dollar amount. You will then be matched with an lender through one of its partners, or its own option, CarMax Auto Finance.

Application requirements: Credit score Social Security number. Valid driver's license Amount you want to finance. Name and contact details. Home address Employment and income Co-applicant, if appropriate down payment

CarMax FAQs

What do I do to receive my vehicle? It is possible to deliver it directly to your residence or via express pick up at your closest CarMax.

What if there is something wrong with my car? CarMax provides a service that lets you return the vehicle for 30 days or 1,500 miles in the event that the vehicle does not satisfy your requirements.

What is CarMax's Three-Day Payoff Program? CarMax's Three-Day Payoff program allows you to replace your initial financing within the first 3 days after signing, if you find better financing elsewhere.

What are the rates of Bankrate? CarMax

Overall score

4

Accessibility

4.3

CarMax has a high rating for its state-of-the-art financing and state availability but restricts drivers to shop only at network dealerships.

Affordability

3.4

CarMax provides an affordable minimum APR, but has undisclosed costs.

Customer experience

4.2

The website is easy to navigate and includes a chat function on its application, CarMax ranks high for overall customer service.

Transparency

4

Fees and rates are not disclosed but prequalification is available.

Methodology Bankrate considers 18 data points when rating auto loan lenders. Acceptance criteria, rates and fees are available and the range of APR all impact lender scores. These scores are split into 4 categories. Availability: Loan amounts as well as repayment options, dealer requirements, and availability in the state all make up this category. Accessibility: This section includes APR ranges, acceptance criteria, discounts and fees. Customer experience: The length of time you have to spend shopping, customer service availability, whether there's an app and autopay availability are accounted for by this segment. Transparency: This category accounts for the availability of fees and rates as well as the availability of prequalification.

Disclosure of author: All reviews are prepared by Bankrate.com staff. The opinions expressed in the review are only those of the reviewer and are not checked or accepted by any advertiser. The information that is included, including rates and fees, presented in the review are accurate at the time when the review first appeared. Review the data in the upper right hand corner of the page as well as the lender's website for the most current details.

Written by

Rebecca Betterton

Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers with the ways and pitfalls of borrowing money to purchase an automobile.

The edit was done by Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate since late 2021. They are passionate about helping readers to control their finances through providing precise, well-researched and well-written information that dissects complicated topics into bite-sized pieces.

Auto loans editor

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How we make money Bankrate.com is an independent, advertising-supported publisher and comparison service. We receive compensation for placement of sponsored products and services, or when you click on certain hyperlinks on our site. Therefore, this compensation may impact how, where and when products are listed in the event that they are not permitted by law for our mortgage or home equity, and other products for home loans. Other factors, like our own rules for our website and whether the product is available within your area or at your personal credit score may also influence the manner in which products appear on this site. We strive to offer the most diverse selection of products, Bankrate does not include information about every credit or financial product or service. Bankrate, LLC NMLS ID# 1427381 | BR Tech Services, Inc. NMLS ID #1743443 |

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5 of the Best Credit Card Prepaid Cards

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5 Best Prepaid Debit Cards

by Spencer Tierney Senior Writer | Certificates of deposit, ethical banking, banking deposits Spencer Tierney is a consumer banking writer at NerdWallet. He has covered personal finance since 2013, with a particular focus on deposits and certificates as well as other topics that relate to banking. He has had his work featured in The Washington Post, USA Today, The Associated Press and the Los Angeles Times, among others. He is located in Berkeley, California.

and Ruth Sarreal Content Management Specialist Bank accounts, bank account bonuses Ruth Sarreal is a specialist in content management covering banking for consumers at NerdWallet. She has over 10 years of experience in writing and editing content for websites for consumers. She was previously editor of articles on personal finance topics at GOBankingRates. The work she has written for her was featured on Nasdaq, MSN, TheStreet and Yahoo Finance.

Updated Mar 1 2022

Written by Yuliya Goldshteyn, Assistant Assigning Editor Yuliya Goldshteyn is a bank editor for NerdWallet. She was previously an editor, writer and a research analyst across a range of industries from healthcare and market research. She received a bachelor's diploma in the field of history at the University of California, Berkeley and a master's degree of social science from the University of Chicago, with a focus on Soviet culture and history. She lives at Portland, Oregon.

Many or all of the products featured here are from our partners, who pay us. This impacts the types of products we feature and where and how the product appears on the page. However, it does not influence our evaluations. Our opinions are entirely our own. Here's a list of and .

+ Summary: Best prepaid debit cards

The Bluebird from American Express : Best for avoidance of charges.

Five Third Access 360deg Reloadable Prepaid Card Ideal for ATM withdrawals.

FamZoo Credit Card : Great for parents (tie).

Greenlight Prepaid Mastercard : Great for parents (tie).

Walmart MoneyCard : Best for shopping at Walmart.

Chime : Best cheap prepaid alternative.

What are prepaid debit cards?

A prepaid debit card may be used as a budgeting tool or a complete alternative to the bank account -- and the best prepaid cards offer convenience while charging few fees.

Prepaid cards are easy to get. Prepaid cards are sold at stores that sell retail (usually for a fee) and some can be ordered on the internet. The cards require no credit check, and they're usually available even if you can't get an account with a bank account because of a poor banking background. Unlike with a credit card that you can load money onto prepaid cards before use.

Some firms also provide mobile-optimized bank accounts that don't need clean credit or banking history They typically are less expensive than prepaid cards.

Prepaid debit cards vs. regular debit cards

There is no need for to have a bank account to get a pre-paid debit card, however it's a requirement for an ordinary debit card that is connected to your checking account. With prepaid debit cards, you load the card with cash when you receive it, and then use it to make purchases. For regular debit cards the money you pay will be taken from your checking account when you make payments.

>> More from NerdWallet:

Nerdy Tip

If you're looking to improve your credit or have been refused a bank account, a prepaid debit card isn't the right choice. and if you aren't able to get an account with a regular bank then try . These accounts provide another shot at mainstream banking and its perks.

Trust NerdWallet: Our editors and writers follow strict guidelines standards to ensure that our content is truthful and accurate So you can pick the account that works the best for you. See our criteria for .

Here are our best prepaid debit cards in relation to charges and features. Look below for more details about each one of the accounts.

BEST FOR AVOIDING FEES

NerdWallet's ratings are made by our editorial team. The scoring formulas are based on many data points for each financial product and service.

Bluebird by American Express

No monthly fees; there is no charge for cash refills at Walmart.

A free ATM network.

Great budgeting features.

The best ATM withdrawals

The ratings of NerdWallet are formulated by our editorial team. The scoring formulas are based on several data points associated with every financial product or service.

Fifth Third Access 360deg Reloadable Prepaid Card

One of the biggest free ATM networks among the prepaid cards.

A monthly fee of $4 is reasonable and affordable to eliminate.

BEST FOR PARENTS

FamZoo

Multiple subaccounts to account for children.

Costs $2.50-$5.99 per month.

Greenlight

Multiple subaccounts to account for children.

Controls on spending at stores.

Monthly fees starting at $4.99.

The best way to shop at Walmart

Walmart MoneyCard

3percent cash back on Walmart.com as well as in the Walmart app and other cash-back rewards.

Multiple subaccounts for family members.

APR 2% on up to $1,000 of savings account.

THE BEST CHEAP CHOICE OPTION FOR PREPAID

NerdWallet's ratings are determined by our editorial team. The scoring formulas consider many data points for each financial service and product.

Chime

No monthly charges.

It also has a savings component.

Bluebird by American Express

Ideal for avoiding costs

NerdWallet's ratings are made by our editorial team. The scoring formulas consider many data points for each financial product and service.

, issued through American Express, offers more than the standard credit card. It also allows you can spend and load money without paying charges.

However, Bluebird has some limitations regarding acceptance of merchants, and it does not permit cash-back at stores.

General fees and features: No monthly charges and no charges for online activation or inactivity.

Purchases: No fees.

ATM withdrawals are free at ATMs within the MoneyPass network; $2.50 fee for other ATMs, in addition to any ATM operator fee.

Reloading methods include direct deposit or debit card transfer card-to card transfer, mobile check deposit (with an additional fee from a third party for instant processing) or the cash-loading option in Walmart or other retailers. (Retailers not affiliated with Walmart could charge up to $3.95.)

Other services Other services: Additional services: Separate "set aside" accounts for savings, and at least four additional accounts that can be set aside for family members.

Downsides: No cash back when shopping at stores. The card is created by American Express, which isn't accepted everywhere that Visa or Mastercard are.

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Find out more about

Fifth Third Access 360deg Reloadable Credit Card

The best option for ATM withdrawals

NerdWallet's ratings are made through our team of editors. The scoring formulas take into account several data points associated with each financial product and service.

The Access 360deg credit card is a prepaid debit debit card takes part in Allpoint's huge U.S. network and has access to over 50,000 ATMs. The card is accessible in the 11 states where There are Fifth Third branches, which is the only place you can purchase the card.

General fees and features: $4 monthly fee that's exempt if you have a Fifth Third checking account or if you make at least $500 in deposits monthly; no costs to activate or stop activity.

Purchases: No fees.

ATM withdrawals: Free at Fifth Third ATMs and ATMs in the ATM Allpoint network; no charge at Presto! ATMs inside Publix stores as well as at 7-Eleven ATMs that are listed on the bank's site or mobile app. $2.75 fee at other ATMs as well as any ATM operator fees.

Reload methods: Direct deposit or cash load, transfer to bank at a Fifth Third branch or ATM.

Others services Card could have joint owner.

Downsides: There's no access to a nationwide retail network to add money; the card is only accepted in Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, Ohio, South Carolina, Tennessee and West Virginia; and the card doesn't come with a savings feature.

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FamZoo Prepaid Card

Ideal for parents (tie)

FamZoo is a family-friendly prepaid Mastercard which allows parents to be virtual bankers for their children, even those older than 13. Four cards are included on the monthly plan, but more can be added at a cost of $3 per card. On the app or website you can make allowances and split payments, view balances and activity across all cards, and set up text and email alerts.

General charges and other features. can pay in advance $59.99 in two consecutive years FamZoo which works out to $2.50 per month. Other prepayment plans also offer a discount. If you don't prepay, the fee for a monthly subscription is $5.99 for a monthly subscription. There is no cost to activate or stop using the service.

Purchases: No cost.

ATM withdrawals are free from FamZoo however ATM withdrawals can still cost you: Since FamZoo does not own any ATMs of its own Third-party ATM operator fees may apply.

Reloading methods : Direct deposit and bank transfer PayPal, Apple Pay, Venmo and Square Cash transfer; PopMoney transfer (for a cost); add cash at stores such as 7-Eleven and Walgreens who are members of Reload at Register, Register, MoneyPak and Mastercard rePower networks (about $5 retail fee).

Additional services include multiple accounts within one plan, free and instant FamZoo card-to-card transfers Ability to secure and lock FamZoo cards, budgeting tools.

Downsides: No free ATM network; monthly maximum fee is higher than average; no mobile check deposit feature.

Are you looking for an account that is more traditional for spending? Check out NerdWallet's accounts.

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Greenlight Prepaid Mastercard

Ideal option for your parents (tie)

Greenlight stands out due to a feature which other prepaid cards don't have that is a store-specific control of spending. Parents are able to preapprove where children spend their money, which means that $300 earmarked for school supplies may only be spent in an on-campus bookstore, for example. The prepaid card also provides real-time activity alerts, free card-to-card transfers for allowances and the capability to remotely lock out lost cards remotely.

A Greenlight account can have up to five subaccounts so it works for families. Given low purchase and withdrawal limits, it's ideal to use it as a tool for budgeting with the family instead of as a bank account replacement.

General charges including features $4.99 up to $9.98 per month, based on your chosen plan (more expensive plans include features like investing education and identity theft protection); no costs on activation or inactivity, or account termination.

Purchases: No charges.

ATM withdrawals: No fees from Greenlight However, ATM withdrawals can cost you: Since Greenlight does not own the ability to operate its own ATMs Third-party ATM operator charges could apply.

Reload methods: Direct deposit, debit card transfer, bank transfer.

Other services Additional services: Up to 5 subaccounts. No international ATM withdrawal fee.

There are some downsides: No checks nor cash can be put in and there is no ATM network that is free The daily maximum for purchases per family account is $1500 and the daily ATM withdrawal limit is $100. These are lower than the norm for prepaid cards.

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Walmart MoneyCard

The best place to shop is Walmart

The Walmart MoneyCard offers its shoppers up to $75 per year in cash-back rewards: 3% for purchases made on Walmart.com as well as in the Walmart app 2 percent on purchases at Walmart fuel stations, and 1 percent at Walmart stores. This app gets high marks, is required to get no-cost cash reloads when you visit Walmart stores. Walmart MoneyCenters and Customer Service desks also offer fee-free cash withdrawals.

This prepaid, reloadable , card is a great option for families. It is possible to open an account for free for up to four additional persons who are at least 13 years older. The Walmart MoneyCard comes with a no-cost "Vault" Savings feature. Savings earn you 2% APY on up to $1,000 upon the card enrollment anniversary.

Since it's not part an ATM network, you'll pay $2.50 per ATM withdrawals, in addition to any fees charged by the operator.

General charges and benefits: $5.94 monthly fee waived with a minimum monthly balance of $500 or more; the starter card fee is $1 for purchases in stores No inactivity fees.

Purchases: No fees.

ATM withdraws $2.50 cost, in addition to any operator fees.

Reloading methods: Add cash via the Walmart MoneyCard app at Walmart stores; deposit checks via mobile or add money through checks cashed through Walmart stores; $3 to reload cash in the Walmart store; and up to $4.95 to load elsewhere.

Other services including: Up to four additional accounts; savings account with an APY of 2% for the first $1,000, and chances to win monthly cash prizes the option to lock and unlock your card via the app; and text as well as email reminders.

Downsides: Fee to use ATMs; insufficient options for loading funds.

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Are you looking to increase your savings faster? See our list of the

Alternatives to prepaid cards with low fees

The distinction between prepaid debit cards and checking accounts is beginning to fade, since several have similar features and benefits.

This is particularly true with mobile-optimized bank accounts as, like the majority of prepaid debit cards, many have no credit check; unlike the prepaid cards, they come with some extra perks, such as more advanced savings features, larger ATM networks and check-writing privileges.

Chime

Best cheap alternative to prepaid

The ratings of NerdWallet are formulated by our editorial team. The scoring formulas are based on many data points for each financial service and product.

Chime isn't a pre-paid debit card or a conventional bank account but a free checking account with the Visa payment network. Though the account doesn't come with checks in paper but it is possible to use the app to request the checks be mailed to an recipient, even yourself, for free.

You can also open a connected Chime savings bank account to set up automated transfer.

General charges and features: No monthly cost and no charges for activation or inactivity; no credit check. Third-party fees for cash withdrawal and withdrawal could apply.

Purchases: There is no additional charge.

ATM withdrawals are free at over 60, 000 ATMs within the Allpoint, MoneyPass and Visa Plus Alliance ATM networks; $2.50 at other ATMs, plus any ATM operator fees. Third-party fees and cash withdrawals might be charged.

Deposit methods: Direct deposit or bank transfer, as well as mobile check deposit; add cash at retailers such as 7-Eleven or Walmart (the retailer might charge a fee) and at Walgreens for no cost.

Other services: Optional savings accounts earn 2.00% annual percent yield. Chime has two automatic savings programs. One where a percentage of every paycheck will automatically go into the savings account . There is the other where your purchases are rounded up according to dollar amounts. the rounded-up change goes directly to the savings account (see below for more information on Chime). You can also receive instant transaction alerts and lock your debit card if you are unable to locate it. Note that a Chime Checking Account is necessary to open an account for savings.

Downsides: The non-network ATM fee.

Chime says: "Chime is a financial technology company and not an institution of banking. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A. Members of the FDIC."

See more information from Chime

Chime says: "Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up of your Chime checking Account to your savings account."

"The retailer who receives your cash is responsible for transferring the funds to the Chime Checking Account. Deposit fees for cash may be charged if using a retailer other that Walgreens."

"Save When I Get Paid" automatically makes 10% of your cash deposits up to $500 in your checking account into your savings account."

"Out-of-network ATM withdrawal fees could apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint and Visa Plus Alliance ATM."

"Mobile Check Deposit eligibility is determined by Chime in its sole discretion. It can be granted according to various factors such as, but not limited to, Direct Deposit enrollment status."

The Annual Percentage Yield ("APY") for the Chime Savings Account is variable and may alter at any moment. The disclosed APY is effective as of October 25, 2022. No minimum balance is required. It is necessary to have $0.01 of savings in order to get interest.

From top to bottom

The most reliable prepaid debit cards and alternatives Summary

Account/card

Monthly cost

of free ATMs

Bluebird by American Express

$0

30,000+

Chime account

$0

60,000+

FamZoo Prepaid Card

$2.50 to $4.33 If prepaid; $5.99 if charged

None

Fifth 3 Access 360deg Reloadable Prepaid Card

$0-$4

50,000+

Greenlight Prepaid Mastercard

$4.99 to $9.98

None

Walmart MoneyCard

$0-$5.94

None

Commonly asked questions What is a prepaid debit card?

A debit card that is prepaid can be used as a tool for budgeting or be a replacement for an bank account. They offer convenience and don't charge many fees.

There's no credit check required to get a prepaid card, and they're usually available if you can't get a bank account because of a bad credit score. It is possible to load funds into pre-paid cards prior to using them to make purchases. In general, you can utilize a debit card prepaid in order to cash out cash at ATMs.

Where can you get the prepaid card?

Prepaid cards are available in retail stores (usually at a cost) and some can be purchased on the internet.

How do you add money to a credit card?

The ways to add cash to a prepaid credit card are different between cards. The most common methods include cash deposits at a register in a store (often at a cost), adding funds by using an app to make a mobile check deposit, or by direct deposits, card-to-card transfers and bank transfer.

What is a debit card that is prepaid?

A prepaid debit card could be used to budget or even a replacement for an bank account. The offer convenience and don't cost a lot of fees. There's no credit check required to get a prepaid card, and they're usually available when you're unable to open an account with a bank account because of a bad credit background. You load funds onto the prepaid cards prior to using them for purchases. In general, you can use a prepaid debit card for cash withdrawals from ATMs.

Where can you find the prepay card?

Prepaid cards are available in retail stores (usually with a cost) and some can be bought through the internet.

How do you transfer money onto an prepaid card?

The methods for adding cash to a prepaid credit card vary between cards. However, most commonly, options include adding cash at a register in a store (often at a cost), adding funds by using an app for an online check deposit and by direct deposit, card-to-card transfer and bank transfer.

METHODOLOGY : Best Prepaid Debit Cards of 2022

We looked at 45 reloadable debit cards provided by some of the biggest banks as well as credit unions, as well as debit card issuers that issue prepaid debit cards. When multiple card plans were available, only the basic monthly fee plan was examined.

We looked at four categories for each card generally-related charges and features, purchase and withdrawals, reload fees and options, as well as other options like bills pay and savings accounts. The cards on this list have the best combination of these categories. Certain cards featured in this roundup have nonbank program managers that partner with banks. In any case, all card issuers are banks that insure consumers' funds by offering the No cards above. contain overdraft fees.

Prepaid debit cards we evaluated included The Fifth Third Access 360deg Reloadable Prepaid Card, , Mango Visa Prepaid Card, , .

See full list

, ,, MoneyAccount, , Boost Mobile Wallet Prepaid Mastercard, Brink's Prepaid Mastercard, Card.com Prepaid Card, CashPass Prepaid Mastercard, Commerce Bank mySpending Card Control Prepaid Mastercard The Exact Prepaid Mastercard, FamZoo Prepaid Card, Fancard, FasterMoney Fifth Third Access 360deg Reloadable Prepaid Card, Fred Meyer Prepaid Card and Greenlight Prepaid Mastercard, H&R Block Emerald Prepaid Mastercard, Mango Visa Prepaid Card, MOVO Virtual Prepaid Visa Card, MyVanilla Prepaid Card and NexsCard Visa Prepaid Card, Opt+ Prepaid Visa Card, , PNC SmartAccess Prepaid Visa Card, Regions Now Visa Prepaid Card and Starbucks Rewards Visa Prepaid Card, TD Connect Reloadable Prepaid Visa Card, , Western Union Netspend Prepaid Card.

We also examined two alternative, or nontraditional, banking accounts as well as .

What do the ratings mean?

-- Among the very best

Excellent; only minor caveats for the majority of customers.

-- Good. Issues that might make a difference to certain customers.

-- Fair. Make sure your the strengths and weak points are great match for you

Poor; proceed with extreme caution

(or below) (or below) stay clear of

The authors' bios: Spencer Tierney is a writer and NerdWallet's authority on deposit certificates. His work has been featured by USA Today and the Los Angeles Times.

Ruth Sarreal is a content management specialist at NerdWallet. She has written and edited content about personal finance topics for over five years.

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Find a better checking account

Check out NerdWallet's top picks for the top checking accounts.

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3 Things to Know if You're Not Experienced with Gig Work

Advertiser disclosure You're our first priority. Everytime. We believe that everyone should be able to make financial decisions with confidence. Although our site doesn't include every business or financial product available in the marketplace however, we're confident of the guidance we offer as well as the advice we provide as well as the tools we design are impartial, independent simple, and free. So how do we earn money? Our partners pay us. This may influence which products we write about (and the way they appear on our website), but it in no way affects our suggestions or recommendations that are based on hundreds of hours of research. Our partners cannot promise us favorable reviews of their products or services. .

3 Things to Know If You're New to Gig Work

by Kelsey Sheehy Senior Writer | Personal finance, small-business, and personal business Kelsey Sheehy is a senior writer and NerdWallet authority on small-business. She joined NerdWallet in 2015 and spent six years as a personal finance journalist and spokeswoman before shifting gears to write about issues and financial decisions faced by owners of small businesses. Kelsey's work has appeared in The New York Times, The Washington Post, Nasdaq and MarketWatch, among other publications. She is also the author of a column on the millennial generation and money for The Associated Press along with some other writers from NerdWallet. Kelsey has been featured on the "Today" program, NBC News and ABC's "World News Tonight" and has been quoted by the Los Angeles Times, CNBC, American Banker, NPR and Vice, among other publications. prior to her becoming a member of NerdWallet, Kelsey covered college (and how to pay for it) in U.S. News & World Report. She is located in Washington, D.C.

Published Jan 29, 2021 6:00AM PST

Edited by Kirsten VerHaar, Senior Assisting Editor eBay and Yahoo! Kirsten VerHaar works as an editor of personal finance. She holds an English literature degree from the University of Colorado Boulder. In her previous roles as a chief editor at eBay, where she managed an entire team of writers who produced coverage for eBay's content team across the globe. She has also written for Yahoo. Since joining NerdWallet in 2015, she's covered issues as diverse as vacuums (yes it really is), budgeting and Black Friday.

A majority of the items featured on this page are provided by our partners, who pay us. This influences which products we review and the location and manner in which the product appears on the page. However, this does not affect our opinions. Our opinions are our own. Here is a list of and .

Shutdowns, layoffs and salary cuts brought on by the have resulted in millions of Americans looking for new sources of income. Anyone who has recently switched to gig work may be weeks away from a financial surprise in the form of tax bills unexpectedly incurred and insurance coverage fine print.

"These are the two most crucial things that new business owners don't think about," says Chris Russell, a San Diego-based certified financial planner who is a specialist in business owners as well as the self-employed.

Do you think that you are a small-business owner? Let's get started.

To the IRS you are a small company

You're running food deliveries. This simple fact makes your business a small one according to the IRS. And that opinion is the only thing that counts when it comes to taxes.

"Basically you're to be an independent contractor" Says Garrett Watson who is a senior policy analyst with the Tax Foundation, a nonprofit organization. "You don't have to be doing anything complicated. You don't need to incorporate or something similar to this."

However, you must pay taxes on any money you earn through gig work. This fact is often an unwelcome and expensive unexpected surprise for new gig workers. When you are an employee, your earnings and payroll taxes are automatically withheld from your pay. However, this is not the case with gig workers, Russell says.

"No taxes are taken out of the money you make as a business owner" Russell says. "Meaning that you'll likely have to pay a large amount to the IRS as you prepare your taxes."

A good rule of thumb: For every dollar you earn doing gig work, set aside 30% to be able to apply to income as well as . As time goes on, you must estimate and pay those taxes each quarter to avoid penalties by the IRS.

If you're thinking "I did not make a lot. I won't report it. How can the IRS know?" Don't. It'll know.

Make the most of your cash

Keep track of all your expenses in one glance to assess your spending patterns and spot opportunities to reduce your expenses.

Tracking expenses is your best buddy

It's not just about money that you deposit in the bank. There are expenses to be incurred, too. Make a note of these expenses since you could take some of them off and reduce the tax bill we talked about a second ago.

"Keep accurate and truthful records in order to benefit from the deductions you're eligible to take," says Ryan Greiser an expert certified financial planner in Doylestown, Pennsylvania.

Apps like Stride, Hurdlr and MileIQ automatically track your mileage and expenses for free or a nominal fee, to help you calculate taxes. Based on your specific circumstances, Greiser suggests QuickBooks could be worth a look.

"It is a small expense to estimate your quarterly taxes, track your mileage and pay your quarterly tax online," Greiser says.

Also, you should research the nuances of what is able to and cannot be deducted depending on the portion of your gig work, Watson states, pointing to ride-hailing services as an example.

Say you drop a passenger off and then drive to get the next one and he tells you. Is it possible to deduct the price of fuel used between rides? (You can. )The is a good place for you to get answers to your questions.

Insurance can be complicated

The IRS isn't the only agency which needs to know about your new source of income. Your insurance agent needs to be clued in, too. The failure to disclose your work can cause you to be removed from your policy in some circumstances. Beyond that, your insurance agent can help you understand what aspects of your gig work are protected.

Moving people or food? It is important to determine whether your car insurance policy will cover accidents while you're working. (It likely won't.). Commercial auto insurance or rideshare can fill in the gap.

Although the platform you're working on might cover you with commercial insurance however, it is only activated when there are certain conditions. It's crucial to be aware of the specifics of the protection.

Uber and Lyft provide commercial coverage for drivers, but it applies only if you have passengers in your car or you are on your route to collect the passenger who has accepted a ride. DoorDash offers liability insurance only and just for food items in your vehicle. Grubhub and Instacart do not provide commercial insurance for delivery drivers using their platforms.

This post originated from NerdWallet and first published in The Associated Press.

About the author: Kelsey Sheehy is a personal finance journalist at NerdWallet. Her writing has been covered on The New York Times, USA Today, CBS News and The Associated Press.

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Walmart MoneyCard Review

Advertiser disclosure You're our first priority. Each time. We believe everyone should be able to make financial decisions without hesitation. Although our site doesn't include every business or financial product in the marketplace, we're proud that the advice we provide as well as the advice we offer and the tools we create are impartial, independent easy to use and free. How do we earn money? Our partners pay us. This may influence which products we write about (and the places they are featured on the site) However, it does not affect our recommendations or advice that are based on thousands of hours of study. Our partners do not promise us favorable reviews of their products or services. .

Walmart MoneyCard Review

Written by Spencer Tierney Senior Writer | Certificates of deposit and ethical banking, as well as banking deposit accounts Spencer Tierney is a consumer writer for banking at NerdWallet. He has written about personal finance since 2013, with a particular focus on deposit certificates and other banking-related topics. The work he has written for him was featured in The Washington Post, USA Today, The Associated Press and the Los Angeles Times, among other publications. He is located in Berkeley, California.

Updated on 17 February 2021.

Editor: Alice Holbrook Assigning Editor | Banking, savings, and home buying Products Alice Holbrook edits homebuying content at NerdWallet. She has covered personal finance topics for almost a decade and previously worked for NerdWallet's banking as well as insurance teams as well as some time on their copy desk. She is based in Ann Arbor, Michigan.

The majority or all of the products featured here come from our partners who pay us. This impacts the types of products we review and the location and manner in which the product is featured on a page. However, this does not affect our assessments. Our opinions are entirely our own. Here's a list of and .

Editor's note, 12 July 2021: Walmart MoneyCard, issued by Green Dot Bank, has converted to a demand deposit account.

The Walmart MoneyCard debit card that is prepaid is a great value for dedicated Walmart customers. The card, which is issued by Green Dot Bank, has cash-back reward points for Walmart purchases as well as free online services.

Best for:

Frequent Walmart customers.

People who want free bill payment and free money transfers between family and friends.

People who have struggled managing a bank account in the past.

People who can load at least $1,000 per month to avoid the higher-than-average monthly cost.

>> See more options: Check our list of

Walmart MoneyCard Pros:

A maximum of $75 cash-back rewards a year: 3% from Walmart.com and 2% from Walmart gas stations, and 1% from Walmart stores.

Cash withdrawals are free at more than 55,000 Walmart locations.

Reload your cash for free at Walmart stores with the MoneyCard app.

Free direct deposit of payroll or government benefits, for up to two or four days in advance.

Pay your bills online for free.

>> Looking for ways to increase your credit? Learn about

Walmart MoneyCard Cons:

A substantial sum of $1,000 is required to waive the fee per month.

$2.50 fee for bank teller and ATM withdrawals, plus any fee charged by a third-party a bank or ATM operator.

A fee of $3 is charged per transaction to reload cash at Walmart checkout, also known by the name of Walmart Rapid Reload; up in $5.95 to reload cash at retail stores within the Green Dot reload network.

>> Ready to open an ordinary savings account instead? Check out the

A brief overview of debit cards for prepaid

What is a prepaid debit card?

A pre-paid debit card can be described as a form of card that lets you use the money you load onto the card. They do not help you build credit. As with debit cards, it can be used at any store that accepts their payment network, like Visa, Mastercard or American Express. It's safer and easier than cash. The prepaid cards usually have an app for mobile devices to deposit checks or transfer money. Find out more about our guide on the prepaid debit card.

Unlike checking accounts, debit cards that are prepaid may lack some services like free ATM or branch networks and checks, to name a few. If that doesn't work for you, check out our top list of checking accounts. Or, if you've struggled with banks before consider second-chance checking options.

Prepaid debit card vs. debit card vs. credit card

Pay with prepaid debit cards in advance: You load money onto the card using cash check or direct deposit to a bank account before paying for transactions.

Debit cards -- pay now Pay now: You can use the money directly from your checking account when paying for purchases or withdrawing money through an ATM.

Credit cards -Pay later: You take money from a bank when you use your credit card. Then, you pay it back later.

How does FDIC insurance on prepay cards work?

Prepaid debit cards typically include FDIC insurance. This helps keep your money safe in the event that the issuer goes bankrupt. Only financial institutions can be covered by FDIC insurance, which means the prepaid card is operated by a bank, or by a prepaid card company that partners with a bank to provide this insurance. It is necessary to register your debit card prepaid using your personal name as well as any other details of identification to be eligible for FDIC insurance, as well as other security.

The author's bio: Spencer Tierney is a writer, and NerdWallet's expert on certificates of deposit. He has had his work highlighted by USA Today and the Los Angeles Times.

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Lease Vs. Buy A Car

Before you compare potential, you must first decide whether you would like to lease or buy your next vehicle. Make use of this calculator to find out which is best for you and estimate possible savings. Simply input the purchase price and the amount to figure anticipated monthly payments and the total net cost.

Calculate your potential savings A important decision is to lease or purchase a car. This tool will calculate the monthly installments and the net cost. When you compare these figures and comparing them against each other alternatives, you can decide which is the best option for you.

Definitions

PURCHASE PRICE

Total purchase price. Price must be before any rebate offered by the manufacturer.

DOWN PAYMENT

Amount paid as a down payment. For leases is often called capital reduction.

SALES Tax Rate

Sales tax percentage to be charged for this purchase. Sales tax is included in each lease payment. Sales tax for buying is added to the total value of the sale.

INVESTMENT RATE OF RETURN

Rate of return on investments. This is the amount of money you could earn when you invest your security deposit or down payment instead of using it in your auto purchase or lease. The amount of returns is largely dependent on the kind of investments you select. The Standard and Poor's 500(r) (S&P 500(r)) for the 10 years ending December 31st, 2016, had an annual compounded return of 6.6 percent, which includes dividends reinvestment. From January 1, 1970 to December 31 st 2016, the average annual compounded rate of return for the S&P 500(r), including reinvestment of dividends, was approximately 10.3% (source: www.standardandpoors.com). Since 1970, the most impressive 12-month return was 61% (June 1982 to June 1983). The lowest 12-month return was 43 percent (March 2008 through March 2009). Savings accounts in an institution can offer as low as 0.25 percent or less, but have a significantly lower risk of loss of principal balances. It is important to remember that these scenarios are speculative and that the future rates of return can't be predicted with certainty and those investments that earn higher rates of return generally come with higher risk and greater volatility. The investment returns can fluctuate significantly over time, particularly for long-term investments. This includes the potential loss of principal invested in your investment. It is impossible to directly invest in an index, and the compounded rate of return noted above does not reflect sales charges and other fees that Separate Account investment funds or investment firms may charge.

LOAN A TERM in MONTHS

The term in months you will pay for your car loan. The most common is 36, 48, 60 and 72. If your loan period is longer than your lease term, we compare the buy vs lease options until the date the lease expires, and then we use the resting loan term to determine your remaining loan amount.

LOAN INTEREST RATE

Annual interest rate on your loan.

OTHER FEES

Any fee, other than the capital reduction or down payment, that must be paid in full at time of purchase. This can include license fee for title transfer, and so on.

ANNUAL DEPRECIATION

The rate of depreciation is the speed at which your brand new vehicle will lose its market value. The highest rate of depreciation is about 20 percent per year. Medium is 15 percent annually, and low is 10 10% per year.

MARKET VALUE OF VEHICLE

Value of your auto after lease term past.

NET COST OF BUYING

This is the total price of purchasing your vehicle. This is calculated as the following: + Total upfront expenses (down payment + other fees) + Interest paid + Outstanding loan balance when lease expires - market value of vehicle when lease expires = net cost of purchasing The lost interest on your purchase includes any interest you would have earned at your investment rate of return on the buy option's down payments and other fees. If the monthly cost for leasing is less than the monthly payment to purchase, this includes any lost interest due to the higher monthly payments. When leasing costs are more expensive than buying, your cost of interest for purchasing is reduced by the amount the interest you earn from the difference.

Lease TERM IN MONTHS

Term in months for your lease.

Lease TERM IN MONTHS

Annual interest rate for lease.

OTHER FEES

Any fee, other than the capital reduction or down payment, that is required to be paid by the end to the term of lease. This may include license, title transfer fees, etc.

Percentage of RESIDUAL

For leases, this is remaining value after the lease term has ended. The greater the amount the more affordable the lease payment.

SECURITY DEPOSIT

Refundable security deposit required at the time lease is signed. We presume that security deposits will be fully refunded by the time the lease comes to an end.

NET COST OF LEASE

The total cost you pay for leasing your car. This is calculated by the following: + Total upfront expenses (capital reduction + other charges) + total lease payments plus lost interest on lease = Net cost of lease The loss of interest on the lease is any interest you would have earned at your investment rate of return on leasing options' down payment and security and other fees. Check out the definition of "Net cost of purchasing" to learn more about how we account for any interest you earn from having the lease with a lower monthly payment.

How to calculate potential savings To effectively calculate if purchasing or leasing the next car is the right choice for you, start by entering the vehicle information. This is the purchase price as well as the down payment on the vehicle with expected taxes on sales. Once the calculator has gathered these numbers, it can compare the net price for leasing or purchasing the car. Then enter the expected term and the interest rates for both. The net cost of buying can be calculated as a result of adding upfront costs -- the down payment, all fees and taxes -- lost interest as well as the value that the marketplace assigns to the vehicle. Compare this number with the net cost of the lease which is the combination of the upfront costs, lease payments and interest paid on the lease. Look at the two numbers displayed on the graph to determine which one is more affordable.

Definitions of leasing and buying

Annual depreciation Rate The rate of depreciation is a measure of how quickly your new vehicle will lose its market value. A high depreciation rate is about 20 per cent per year, medium is around 15 percent annually and the lowest rate is 10 percent per annum.

Down payment The amount that is paid as a down payment, which for leases is often called a capital reduction.

Return on investment rate of returns on investments. This is the return that you could earn if you decided to put your down payment or security deposit instead of using it for the lease or purchase of your vehicle. The actual rate of return for investments may vary in time, particularly when it comes to long-term investments. This includes the potential loss of capital on your investment.

Interest rate on lease Annual interest rate on your lease.

Lease term in months by months to be used for the car lease.

Interest rate on loans Annual rate of interest on your loan.

Loan term in months The duration in months for your car loan. Typically this is 36 60, 48 or 72 months. If your loan term is longer than your lease, we compare the buy and lease options with respect to the point at which the lease ends, and then use your resting loan period to determine your outstanding loan balance.

Value of your vehicle in the market of your vehicle after lease term is over.

Net price of leasing It is the total cost of leasing your vehicle. It is calculated by Total upfront costs (capital reduction plus any other charges) + the total amount of lease payments and lost rent on the lease = net price of lease. The amount of lost interest on your lease includes any interest you would have earned based on the rate of return you earn on the lease option's down payment, security deposit , and other charges.

Net price of purchasing It is the total price of purchasing your car. This is calculated by the sum of: Total upfront costs (down payment + other costs) + Lost interest + outstanding loan balance when lease expires - Market value of the vehicle at the time lease expires = Net price of buying The lost interest on your purchase includes any interest you would have earned based on the rate of return you invested for the buy option's initial down payment and other fees.

Other fees Any cost, other that a capital reduction or down payment, required to pay at moment of the purchase or at the end of the lease. This may include license fee for title transfer, license fees, and other similar costs.

Purchase price Total price of purchase. Price must be before any rebate offered by the manufacturer.

Residual percent For leases, it is the amount left after the lease term expires. The higher this amount, the lower your lease payments will be.

Sales tax rate Percentage sales tax to be charged for this purchase. The sales tax will be included into every lease payment. Tax on sales for purchases is imposed on the entire sale amount.

Security deposit Deposit for security that is refundable to be paid at the moment of leasing. We presume the deposit will be completely refunded when the lease comes to an end.

Do you prefer to lease or purchase a car? The decision to purchase or lease your next vehicle comes down to the distances you'll be driving and the amount that you are willing to spend. There is no absolute standard to follow when selecting the right car for you, but rather takes some reflection on your spending habits and your budget. The cost of a car will be less on a monthly basis and gives you the opportunity to get behind the wheel of a nicer vehicle. However, it also means that you have to travel limitations and restrictions on the limits of the vehicle. This puts you in full control of your vehicle, so you won't have to worry about keeping the track of the mileage on the odometer. Or the cost for wear-and-tear on your vehicle.

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Average Net Worth by Age How Can You Compare?

Advertiser disclosure You're our first priority. Everytime. We believe everyone should be able make financial decisions with confidence. And while our site does not include every company or financial product that is available on the market, we're proud of the advice we offer, the information we provide as well as the tools we design are independent, objective, straightforward -- and free. How do we earn money? Our partners compensate us. This can influence the products we review and write about (and the way they appear on our website) however it in no way affects our recommendations or advice which are based on many hours of study. Our partners are not able to be paid to ensure positive ratings of their goods or services. .

Median Net Worth by Age: How Do You Compare?

The average net worth for U.S. families is $748,800. The median, a more representative measure - is $121,700.

By Lauren Schwahn Lead Writer | Personal finance and the debt Lauren Schwahn is a writer at NerdWallet who covers budgeting, debt and money-saving strategies. She is a contributor to the "Millennial Money" column of The Associated Press. She has been featured on USA Today, MarketWatch and many more. Lauren holds a bachelor's degree in the field of history at the University of California, Santa Cruz. She is based in San Francisco.

Updated Dec. 2 2022 at 2:31 PM PST

Edited by Courtney Neidel Assigning Editor | Personal financial planning, budgeting, and buying Courtney Neidel is an assigning editor for the personal finance team at NerdWallet. She began working at NerdWallet as a writer in the year 2014 and spent the next six years doing articles about budgeting, shopping and strategies for saving money before being made editor. Courtney has been interviewed as a retail authority by "Good Morning America,"" Cheddar and CBSN. Her prior work experience includes freelance writing on behalf of California newspapers.

Many or all of the products featured here are from our partners, who pay us. This influences which products we review as well as the place and way the product appears on the page. But this doesn't affect our assessments. Our opinions are our own. Here is a list of and .

We're all aware that our net worth doesn't remotely come close to those of billionaires from the world of Oprah Winfrey ($2.5 billion) or Jay-Z ($1.3 billion). There's been reports that Elon Musk's wealth decreased in 2022 by more than the wealth that Oprah and Jay-Z together $100 billion. But, he's still worth close to $200 billion.

Have you ever wondered how yours compares to your peers'? We analyzed the average net worth numbers from the Federal Reserve Board's Survey of Consumer Finances report to help you figure it out.

What is net worth?

Net worth is what you own minus what you are obligated to. With a calculator , you can calculate your net worth by subtracting the value of all your debts (such as student loans) and subtracting the value of your entire assets (including your home and funds in your pension accounts).

>> RELATED:

Is the median American wealth?

So how can we figure out the value of the net worths of Americans? According to the Federal Reserve Board issues the Survey of Consumer Finances every three years to provide information on household earnings, net worth and other. In the current report -that was released in September 2020 with data collected in the year 2019 -- the average or mean wealth of U.S. households is $748,800 [0] Federal Reserve Bulletin . . Accessed Apr 11, 2022.

. Doesn't seem like it's too high? That's because affluent households drive the average higher.

The median, also called the midpoint value, provides the most accurate way to represent the typical person. The overall median value for U.S. households is $121,700. This could help you breathe a little easier.

Average net worth by age

Net worth figures vary based on education, age, and many other variables. We'll focus on the mean and median net worth figures for different age groups:

Age of head of family

Median net worth

Average net worth

A little less than 35

$13,900

$76,300

35-44

$91,300

$436,200

45-54

$168,600

$833,200

55-64

$212,500

$1,175,900

65-74

$266,400

$1,217,700

75+

$254,800

$977,600

How can you determine your net worth?

Are you unsure of what your personal number is? Utilize our net worth calculator to determine it.

Net worth calculator

Enter the amount of your assets and liabilities to calculate your net worth.

Assets

Checking accounts

Savings accounts

Accounts for retirement and investments

Real estate

Cars

Other assets Include all other accounts or valuables (e.g. jewlery, art, etc. ).

Liabilities

Mortgages

Personal loans

Car loans

Credit card credit card debt

Student loans

Other debts include payday loans and any other loans that are not listed here.

Net worth

$0 Really get to know the value of money.

NerdWallet provides you with a comprehensive overview of your spending bill, debts, bills and spending -- all in one place.

What is the significance of net worth?

Net worth is one way to check your financial pulse and identify the strengths as well as weaknesses. But, it's not the most accurate picture. Just because someone has a does not mean that they live an excellent standard of living. A homeowner's house could boost the net worth of their home but they may be cash poor if they don't plan to sell the property and have no savings.

A fascination with others' net worth can motivate us to set and pursue financial goals. It can also make us feel unnecessarily inferior. It's crucial to realize the fact that your net worth doesn't represent a set number. It's able to fluctuate either way -- with the passage of time.

How to increase your net worth

Still, wanting to boost your number isn't necessarily a bad thing. There are numerous strategies you can implement to build net worth. Begin by following a few fundamental steps:

Choose a debt payoff strategy. Plan out a way to eliminate heavy debts. We recommend that you pay off debts with the highest rates first. This strategy is known as the . Another option to consider is to roll several debts into one payment.

Make money. Set up automatic savings, benefit from competitive account interest rates, and look into different options .

Be patient. The common pattern for people is that net worth increases as they age. Do your best to get on the right path and give yourself time for your efforts to be repaid.

Keep track of your money using NerdWallet.

Skip the bank apps and view all your accounts at one time.

Author bios: Lauren Schwahn covers consumer credit and debt at NerdWallet. She has also been highlighted by USA Today and The Associated Press.

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The Debt Settlement Process: Do-it-yourself Guide

(image: https://burst.shopifycdn.com/photos/sign-says-online-is-better-with-a-small-shopping-cart.jpg?width=746&format=pjpg&exif=0&iptc=0)Advertiser disclosure You're our first priority. Everytime. We believe everyone should be able to make sound financial decisions with confidence. While our website does not include every company or financial product in the marketplace We're pleased that the guidance we offer as well as the advice we offer as well as the tools we design are impartial, independent simple, and free. So how do we make money? Our partners pay us. This can influence the products we review and write about (and the places they are featured on the site), but it does not affect our recommendations or advice that are based on hundreds of hours of research. Our partners do not pay us to guarantee favorable reviews of their products or services. .

The Debt Settlement Process: A Do-It-Yourself Guide

The process of negotiating a debt settlement by yourself isn't straightforward, but it is possible to save you time and money when compared to hiring a debt settlement company.

by Sean Pyles Senior Writer | Personal finances, credit, and personal finance Sean Pyles leads podcasting at NerdWallet as the producer and host of NerdWallet's "Smart Money" podcast. In "Smart Money," Sean talks with Nerds across the NerdWallet Content team to answer the listeners' questions about personal finance. With a focus on thoughtful and practical money tips, Sean provides real-world guidance that can help consumers better in their finances. Beyond answering listeners' money questions on "Smart Money," Sean also interviews guests who are not part of NerdWallet and creates special segments to explore topics such as the racial gap in wealth and how to begin investing, and the background for student loans.

Before Sean was the host of podcasts at NerdWallet He also covered issues concerning consumer debt. His work has appeared throughout the media including USA Today, The New York Times and other publications. When he's not writing about personal finances, Sean can be found working in his garden, going for runs , and walking his dog for long walks. He is based in Ocean Shores, Washington.

Updated August 6, 2021 at 9:38AM PDT

Written by Kathy Hinson Lead Assigning Editor Personal finance, credit scoring, debt and money management Kathy Hinson leads the Core Personal Finance team at NerdWallet. Prior to joining NerdWallet, she worked for 18 years at The Oregonian in Portland in roles including copy desk chief and team leader for design and editing. Her previous experience includes copy editing and news for several Southern California newspapers, including the Los Angeles Times. She received a bachelor's degree in journalism and mass communications from Iowa's University of Iowa.

Many or all of the products we feature are provided by our partners who pay us. This affects the products we feature and the location and manner in which the product appears on a page. But this doesn't affect our opinions. Our opinions are our own. Here's a list and .

If you do it yourself, you can engage in person with the creditors in an effort to settle your debt for less than what you originally owed.

The strategy works best for debts that are in arrears. If creditors see missed payments growing in severity, may be open to an agreement because a partial payment is better than making no payment at all.

Debt settlement can be a viable option if your payments are at least 90 days behind It's more likely when you're more than five months behind. If you continue to miss payments while trying to negotiate, credit damage piles up, and there is no guarantee that you'll come in a settlement.

There are more effective ways to instead of DIY to settle your debt. If you decide to take the plunge, handling debt settlement negotiations yourself may be a better alternative to using a which is expensive and ineffective.

Let's see what DIY the process of debt negotiation compares to using a debt settlement company, and the best way to negotiate with a creditor on your own.

DIY debt settlement vs. debt settlement companies

Time and cost are the most significant differences between debt settlement with an organization and doing it yourself.

Advertising for debt-settlement has claimed that the companies could help consumers reduce their debts by up to 50% and get them free of debt in as little than 36-months.

You could be able to see faster results when you the option of settling your debts yourself. While completing a plan through a business can take up to two and a half times longer or even more time, you might be able to settle your debts yourself within six months of becoming in default, according to Michael Bovee, a coach for debt settlement.

With a debt settlement company will likely charge a fee of 20% to 25% of the enrolled debt once you agree to an agreement to a settlement that you negotiate and then make at minimum one payment to the creditor through an account specifically set to be used for this purpose, as per the Center for Responsible Lending.

In addition, you'll likely be required to pay for charges for setup and monthly payments that come with your payment account. If you pay $9 per month to maintain the account, plus a set-up charge of just $9 you could be paying upwards of $330 in 36 months, on top of the amount you pay for each debt settled.

Debt settlement companies also can be unable to achieve their goals due to inconsistent. The Consumer Financial Protection Bureau has logged nearly 330 issues about firms that offer debt settlement in the year 2014. Among the most common issues included fraud and high fees. In 2013 the CFPB took legal action against one company, American Debt Settlement Solutions, saying it failed to pay any debts for 89% of its customers. The company based in Florida has agreed to close its operations, according to a court order.

While there are no guaranteed results from debt settlementwhether through a business or by yourselfyou'll get yourself a head start and avoid costly fees if you go it on your own.

>>How to pay off your debt:

How to make a DIY debt settlement step-by-step

If you choose to talk to a lender by yourself, getting through the process requires some know-how and perseverance. This is a step-by-step guide.

Step 1: Determine if you're a good candidate

Take a look at these questions and decide which one is the best option for you. DIY credit settlement the best option:

Have you thought about it ? Both can resolve debt with less risk, speedier recovery and more predictable outcomes over debt negotiation.

Are your debts already delinquent? Most creditors will not even consider settlement until your debts must be at least 90-days past due. Bovee, the debt settlement coach, suggests you'll have a higher likelihood of getting a settlement with the creditor who originally issued the loan that is around five months delinquent, which is around the time many creditors will transfer the debt a .

Do you have enough money to settle? Certain creditors may want an all-in lump sum payment, whereas others will accept installment plans. Whatever you decide to do, it is essential to have cash available to secure any settlement agreement.

Do you believe in your negotiation skills? Confidence is key to DIY credit settlement. If you are confident that you're capable, you will. If your confidence is wavering, DIY debt settlement may not be the best route to take, Bovee says.

Step 2: Be aware of your terminology

You need to negotiate two things: how much you'll be able to pay and how it'll appear on your credit reports.

In exchange for payment, you could be eligible to settle your debts for 40 percent to 50 percent of the amount you were originally owed, Bovee says.

If you're trying to pay off your debts as a percentage of what you owe, you should also think about the amount you can pay as an exact dollar amount. Look over your finances and figure out the amount. Make note of the part of debt that's forgiven if the amount is at least $600.

In terms of your credit score, it's probably been wrecked because of missed payments prior to the time you're able to settle. But you may be able to redeem yourself by understanding the way in which your debt was settled appears on your credit reports.

Settled debts are usually identified with "Settled" or "Paid Settled," which isn't a good look when you look at credit scores. Instead, try to get your creditor to mark the settled account "Paid as Agreed" to minimize the damage.

Step 3. Call the number

Dealing with your creditor requires persistence and persuasiveness. It is a crucial step during the settlement process.

It is possible to settle the payment in one go however, it could require a few phone calls to reach an agreement that works for the both of you, and for your lender. If you don't have luck with a particular representative, try calling for a second time to obtain someone more willing to work with you. Try asking for a manager in case you're not getting any results from telephone representatives on the front line.

Prepare for the meeting with a clear account. In a concise way, describing the financial difficulties which caused you to not be able to pay your bills will make the creditor more sympathetic to your case.

Be aware of the amount you could reasonably afford. Begin by lowering your price, and try to work toward an agreement that is in the middle. If you are aware that you will only pay half of the original amount Try offering 30%. Beware of agreeing to pay an amount you can't afford.

Success rates can vary based on the creditor. Some are open to settling while others won't. If you're not making any gains, it might be time to reconsider other options for debt relief such as Chapter 7 bankruptcy or a .

Step 4: Finalize the deal

Before you make any payment make sure you have the settlement conditions and credit reporting in the form of a letter from your creditor.

A written agreement holds both parties responsible. They have to honor the contract, however, should you default on a payment then the creditor has the right to revoke the settlement agreement and you'll end up back where you left off.

"Debt settlement is about commitment. If you fail to pay, it's over," Bovee says. "Say you're using an agreement for a 12-month period. You pay the beginning six months in advance, however, when you don't make it to month 7, they will are allowed to take the previous one month (of payments) and apply it to the full amount."

The author's bio: Sean Pyles is the executive producer and host on the NerdWallet's Smart Money podcast. His writing has been featured in The New York Times, USA Today and elsewhere.

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