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How to refinance your car loan Part of refinancing a Car Loan This video series will help you refinance the Car Loan

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5 min read Published March 23, 2023

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There isn't a perfect fit for everyone when they take out an auto loan. Refinancing your car loan can . It involves replacing your current loan with a new loan with an additional length, interest rate or both. A lower rate can help lower your monthly payments as well as the cost you'll incur over the course that you pay for the loan. However, to get the most benefit of refinancing, it is necessary to require good credit and a history of punctual payments. Seven steps for refinancing your auto loan Refinancing your car loan is like the application process for any car loan however, there are few additional steps. Examine your finances as well as loan documents, then find the right lender to meet your needs. 1. Consider refinancing as the best option for you financially. There are two primary reasons to refinance: If you can get a better rate or if you are . This is the first situation that happens when you take out an auto loan in the past when you had a high credit score or your credit score was low. If you've been in the market since getting your loan, lenders will likely give you more favorable terms that will enable you to save money over the life that of your loan. On the other hand should you feel that you're stretching your budget for monthly expenses by paying your current bill, you can refinance your auto loan for a longer period. Reextending your repayment period will lower the amount you pay each month -- but you will likely pay more in interest in the long run. What's the most important takeaway

If refinancing your vehicle will reduce your expenses, it's likely the right choice for you. If you can't get a , it is not a good option. A refinance with higher interest rates will increase the cost of your loan more expensive even if the monthly payments are lower.

2. Review your current loan Most lenders have a refinance option. This means that you have to know your payment value to figure out if can qualify. It's also essential to be aware of the exact amount of interest you've paid and what your monthly installment is, and what the total cost of the loan will be when you pay off the entire period. Make sure you have this information in order to compare your current loan against the loans you'll receive in future steps. What's the most important takeaway

The power of education is when it comes to getting the best deal. Utilize this guide to find out the cost you're paying on your existing loan and then compare it with your refinance options after you have applied for preapproval.

3. Check your credit score Your credit score and your history are the most important factors that lenders take into consideration when you apply to refinance. If you have made smart money decisions since then -- and making on-time payments for instancethen your Lenders will view you as less risky and could offer lower rates. Before you begin applying. This will guide you towards lenders that you are eligible for and also help predict rates. Even those with a credit history the ability to qualify for a loan by finding the perfect lender. The most important thing to remember is

The higher your credit score is, the lower the interest rate you will likely receive from a lender. Your payment history matters as well.

4. Estimate your car's value The amount of your loan isn't the only factor to take into consideration when deciding to refinance. It is also important to be aware of . Resources like and allow you to estimate the value of your car simple. If your vehicle is older with low miles and a substantial balance that will still take years to pay off refinancing can make you money as well as stop you from being upside-down in your loan. If the value of your car is less than the amount you owe, you might not be able to refinance. And if your car is nearing its final payment and you're in a position to pay it off, it's less sensible to refinance as interest only makes up a small portion of the remaining payment. The most important thing to remember is

Understanding the worth of your vehicle can assist you in determining if lenders will allow you to lend you money. If your car isn't valued at all, refinancing might cost you more than what you'd be able to save.

5. Compare rates to find the best refinancing rates . All lenders evaluate your credit score, financial history and eligibility in different ways. If you are considering refinancing begin with the credit union or bank that you use in other areas. Certain financial institutions offer reduced interest rates to customers who are already customers. Then compare the rate offered by your current lender to gain an idea of the best lenders' rates. Once you're prepared, you should have at three lenders. With multiple preapprovals, you can see which option is the best for your financial needs. Key takeaway

Interest rates vary widely and it is advisable to compare several lenders before deciding. However, you should check with your current financial institution since there are discounts available to existing customers.

6. Find out your savings after shopping at rates, do the math to determine how much you can benefit from refinancing your car loan. Utilize an application to make the comparison easy. Review your current loan for fees. It is not unusual for lenders to charge , which will make it more expensive to refinance. Be sure to have a clear understanding of your goal. If you want to lower the amount of your monthly payments, be sure that the new loan won't cost too much more if you opt for . If you're refinancing with an lower interest rate, be sure that you are saving enough interest to offset any fees. A shorter loan term is also worth considering if you have more money in your budget. You'll reach the finish line sooner and save on interest dependent on the terms you'll receive with your new loan. Doing the math ahead of time will let you see the amount the new rate will save you in terms of the interest rate, monthly payments or both. 7. Make sure you have all your paperwork in order The preapproval process is crucial but it's not necessarily the end of the road. When you apply, plan to provide the lender with these documents: Proof of income, including W-2s or most recent pay stubs. Proof of residency such as a recent utility bill lease agreement monthly mortgage statement, or tax bill Insurance proof: the most recent monthly statement or insurance cards Details about the current loan (such as balance, interest rate, loan duration and monthly payment) Specifics about your vehicle include year, make, model as well as the mileage and VIN. (VIN) Be sure to go over your application and the documents to ensure that there are no errors prior to submitting. Once you submit the paperwork and receive approval from the lender, follow up with the lenders. If you get a check, ensure that your previous lender accepts it and adds this to the loan. If the current lender is paying back the previous one, be sure to check in frequently to make sure that there aren't any missed payments due to errors in clerical processes. The most important thing to do is organize your documents prior to time to accelerate the refinancing process. Be prepared to contact both lenders to ensure that your pay-off and payments go to the correct place. Considerations to make prior to refinancing Before jumping into the refinancing process, make sure it's appropriate for you. Requirements for refinancing: Every bank or lender has its own criteria to determine if you're qualified for refinancing. Make sure that you're not paying on time for payments. The remaining amount in your loan is another eligibility requirement. Lenders will often require at least six months of monthly payments on your loan, and you should have at least six months left. Prepayment penalties: A lot of auto loans have clauses that define how and when you can repay the loan. Often these clauses include a , a fee assessed if you pay off the loan early. There are a few lenders that will charge this fee, but it can impact your overall savings. The remaining time on the loan: If you are near the end the current loan, it may make more sense to finish paying it off , rather than putting cash and time into refinancing. Financial health and wellbeing: The debt-to income ratio is one of the many aspects that are which lenders take into consideration. The more you know about it prior to applying for an additional loan you have a good credit score, the better chance of receiving favorable loan terms. You can use an internet-based calculator that can help calculate your debt-to-income ratio. The bottom line : refinancing your car loan could have a significant impact on your personal finances. Before you make an application to a lender, investigate the auto loan rates and compare their conditions with those of your current loan. Through comparing rates and working on improving your credit score you could be able to cut down on the total amount you pay or get a more affordable monthly payment by switching lenders.

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Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers with the details of borrowing money to purchase a car.

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Rhys has been writing and editing for Bankrate from late 2021. They are dedicated to helping readers gain confidence to manage their finances by providing clear, well-researched information that breaks down otherwise complex topics into digestible chunks.

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The next step is refinancing an Auto Loan

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Gift Card vs. Prepaid Debit Card: Which is the Better Gift?

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Gift Card Vs. Prepaid Debit Card: Which is the Better Gift?

Gift cards are the clear winner in a simple cash gift. Prepaid debit cards are more similar to bank accounts.

By Spencer Tierney Senior Writer | Certificates of deposit, ethical banking, banking deposits Spencer Tierney is a consumer banker at NerdWallet. He has covered personal finance since 2013, with a focus on certificates of deposit and other banking-related issues. The work he has written for him was highlighted on The Washington Post, USA Today, The Associated Press and the Los Angeles Times, among others. The location of his work is Berkeley, California.

Updated Dec 22 2022

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Cash is a great gift option, but what shape it will take is a different issue.

The idea of putting bills into an envelope might work, but it's not ideal: There's no way to recover cash if it gets lost or stolen. Additionally, it's easy to forget that cash was a gift once it's in the wallet.

The storage of cash in plastic cards is more secure, provided you choose wisely in between gift card and debit cards. Here's what to be aware of.

Gift cards vs. prepaid debit cards

Let's begin by describing how they're similar They're both credit cards that are prepaid, meaning you pay for the card ahead of time for shopping at both physical and online stores. They also offer protections against losses if you have them registered under your own name. You may see both kinds of cards in the same section of a retailer, like Walgreens So make certain to know which you're buying.

The major difference between a giftcard and a prepaid debit cards is that it is a one-time spending card, and a prepaid debit card can be reloaded as a payment option that has most features and charges that checking accounts and linked debit cards have.

The purpose of gift cards is they are used to purchase goods from a specific store brand or at any store that accepts payment networks such as Visa, Mastercard or American Express. They don't allow cash withdrawals and are not reloadable.

Prepaid debit cards can be used for a variety of jobs: make purchases; withdraw cash at ATMs, banks, or retail stores; and utilize web features such as bill pay. They're also reloadable.

Because of their flexibility Due to their flexibility, prepaid debit cards could be used as budgeting tools, or even replacements of checking accounts. They've historically been used to reduce spending too much, but in recent years there have been increased (a common cost when excessive spending) and also to aid in tracking expenditure.

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Winner: Gift cards

Gift cards are as true as their title: gifts. Their simple nature is part of the reason they are a better choice to give. But there's another reason: Prepaid debit cards usually have monthly fees like checking accounts and these fees, typically between $5 and $10, could add up to $120 annually. There could be other fees as well the transaction fees or inactivity charges.

The gift cards can be the better choice, but they're not all equal bargains.

Gift cards for general use like those offered by Visa and Mastercard are typically charged one upfront charge, commonly called a purchase or activation fee. This is the amount that the gift recipient is required to have to pay. The fee might be $2.95 to $5.95 dependent on the amount added on the card as determined by an assortment of gift card websites. But there aren't usually other charges after the purchase.

There are exceptions. A bank may offer general-use gift cards, which have renewal fees or inactivity fees. These can be charged on a monthly basis after an entire year of card use.

It is possible to avoid most or all costs by purchasing a store brand gift card. In general, understand the terms and conditions of gift cards before you purchase it to ensure that the gift you give your loved ones brings happiness without any fees.

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

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How to spot auto loan fraud Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our aim is to assist you make better financial decisions by providing you with interactive tools and financial calculators as well as publishing original and objective content. We also allow you to conduct research and compare information without cost, so that you can make decisions about your finances with confidence. Bankrate has partnerships with issuers such as, but not limited to American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money The products that are featured on this website are provided by companies who pay us. This compensation can affect the way and when products are featured on the site, such as for instance, the sequence in which they be listed within the categories of listing in the event that they are not permitted by law. This applies to our loan products, such as mortgages and home equity and other home loan products. But this compensation does affect the information we publish, or the reviews you read on this site. We do not contain the vast array of companies or financial deals that may be available to you.

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4 minutes read. Published 28 February 2023

Authored by TJ Porter Written by a contributing writer

TJ Porter is a contributing writer for Bankrate with eight years of experience in writing about financial matters. TJ writes on a variety of topics, ranging from .

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

Rhys has been writing and editing for Bankrate from late 2021. They are dedicated to helping readers gain confidence to take control of their finances with concise, well-researched and well-organized facts that break down otherwise complicated topics into bite-sized pieces.

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When scammers targeted homeowners in the downturn in housing prices and the recession, car loan frauds are now starting to attract the attention of the government watchdogs. These scams range from illegal techniques for financing that force consumers into unfavorable finance agreements, to deceptive negative equity deals that put consumers with more car loan debt than they anticipated. Most scammers target owners of cars who must catch up on their bills and wish to avoid getting their cars taken away. The scams could be costly to avoid, so be aware of the signs to watch out for. The scam of car loan modification scams A car loan modification scam is a scam created to extort your cash without providing a service. Car loan modification scammers promise to lower your auto loan payments. In the exchange for helping you reach their goal, scammers demand a steep fee upfront. Scammers usually demand fees in advance or for unusual forms of payment. They may also pressure you to sign an agreement, and they will usually not even check your credit score. They may also instruct you to stop making auto loan payments while they "negotiate" with your lender. It's also not unusual for scammers to ask for additional money as they continue their"efforts" on your behalf. In certain cases the scammer might ask for you to pay your car directly to them instead of your lender. "The scams are like those of mortgage loan modification scams, with the scammers telling customers that they could prevent their car from being taken away and that they can reduce their monthly payment," says Gregory Ashe, senior staff attorney with the Bureau of Consumer Protection at the Federal Trade Commission. Repossession can occur after just 2 or 3 months not paying. The longer you delay making the call, the fewer options will be available. "Auto lenders aren't typically lowering interest rates or reducing the principal balance of the car," Ashe says. "If there is any relief to be obtained, it's generally to extend the length of the loan to reduce your monthly payments , or to delay payments that aren't made until the finalization of the loan. You'll pay more during the duration of the loan, so there's no significant savingshowever, at least you'll have the chance to pay for your vehicle payments." How to avoid

To avoid being the victim of a car loan modification fraud To avoid being a victim of a scam, the FTC suggests that you take action as immediately as you can tell you will And ignore any too-good-to-be-true promises of lowered payment on your car from companies that are not trustworthy.

Yo-yo financing scams A advertises a low interest rate to the buyer, only to yank it off to make an already committed buyer sign a contract with less favorable conditions. This is how it operates. A car dealer entices a buyer to believe that the financing is complete that they will take a trade-in as a down payment and allows the buyer to leave the dealer with a brand-new vehicle. Some days and even weeks after the dealer will contact the customer and inform them that the financing did not go through. The buyer will have to come back to sign a new contract generally with less favorable conditions. Sometimes, the dealer is already selling the vehicle that was traded in, leaving the buyer to choose between higher rates or none at all. These scams usually target people who have fewer financing options due to the limited options they don't have . Yo-yo lending is not legal in every state, says Paul D. Metrey, executive vice president for regulatory affairs with the National Automobile Dealers Association in McLean, Virginia. But there are also conditional sales and spot deliveries that are completely legal. The FTC is currently drafting a for car dealers that includes language to protect consumers from yo-yo financing traps. If it is enacted, the rule would prevent dealers from misrepresenting what the transaction actually finalized. What can you do to prevent

To avoid a yo-yo scam, buyers can come to the dealership with secured prior to the time. It is likely that you will get a better interest rate through the credit union or bank with which you already have an account. Plus, walking in with financing already locked down can give you .

Negative equity scams The FTC has taken administrative action in connection with Truth in Lending Act violations concerning how dealers dealt with negative equity. They did not inform consumers that although they promised to "pay the balance" the outstanding balance on a trade-in, they actually took the negative equity and put it towards the new car loan balance. Many customers complained that they didn't realize that until they signed their new auto financing documents. "Consumers need to carefully go through the document before signing it since it doesn't matter what's said. It matters what's in writing," Ashe says. "If you aren't sure about something, don't sign it." What can you do to stay clear of

If you go through your loan documents, you should ensure that the amount is what you were obligated to pay. If you find additional charges, ask the finance manager at the dealership for a detailed explanation of these costs. Your trade-in should be treated as a separate purchase. While you can choose to into the new loan but the dealer has to explain how this affects the terms of your loan.

Loan packing Dealers may make you feel pressured to or provide services when buying the car. They could offer an extended warranty, rustproofing, tire rotation and service contracts. While some of these items can be useful, many aren't. The dealer's primary goal at this point is to get you to spend more money. Be aware that you are not required to agree to any add-ons. If some of the options are appealing to you, consider negotiating the cost of the additional item in the same way you negotiate the price of the car itself. Be aware that when you add it to the loan you'll have to pay an interest rate on the loan. What can you do to stay clear of it?

Research what is being offered and consider what you could do on your own or by a store elsewhere. You may find that you can get the services or options at an affordable price and with higher quality, without incorporating them into your loan.

The main point is that loan modification scams target vulnerable buyers who are not creditworthy or are late on their payments. If it appears too appealing to be true it's probably true. If you're struggling to pay your loan, the best thing to do is contact the lender directly. Lenders will often be willing to collaborate with you when you demonstrate that you're making an honest effort to make payments.

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TJ Porter works as a contributor writer for Bankrate with over eight years of experience in writing about financial matters. TJ writes about a range of subjects, from to .

Edited by Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate from late 2021. They are committed to helping readers feel confident to take control of their finances by providing clear, well-researched information that breaks down otherwise complex subjects into digestible pieces.

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3 Ways Minority-Owned Banks can make a difference in America

Advertiser disclosure You're our first priority. Everytime. We believe that everyone should be able to make financial decisions without hesitation. Although our site does not include every company or financial product available on the market however, we're confident of the advice we provide as well as the advice we offer as well as the tools we design are impartial, independent, straightforward -- and cost-free. How do we earn money? Our partners pay us. This can influence the products we write about (and the places they are featured on our website), but it in no way affects our recommendations or advice that are based on thousands of hours of research. Our partners do not pay us to guarantee favorable ratings of their goods or services. .

(image: http://www.imageafter.com/image.php?image=b17eva255.jpg&dl=1)3 Ways that Minority-owned Banks Can make a difference in America

by Spencer Tierney Senior Writer | Certificates of deposit ethics, ethical banking, bank deposit accounts Spencer Tierney is a consumer banker at NerdWallet. He has been writing about personal finance since 2013, with a particular focus on certificates of deposit and other banking-related subjects. He has had his work featured by The Washington Post, USA Today, The Associated Press and the Los Angeles Times, among others. He is based in Berkeley, California.

Updated December 11 2019, 2020

Editor: Carolyn Kimball Assisting Editor - Banking Los Angeles Times, San Jose Mercury News Carolyn has worked in newsrooms all over the nation as a reporter and editor. Her passions encompass personal finance, Sci-Fi novels and absurd Broadway musicals.

A majority of the products featured here are provided by our partners who pay us. This affects the products we review and where and how the product is featured on a page. But, it doesn't influence our evaluations. Our opinions are our own. Here's a list and .

One type of bank plays a significant role in generating more opportunities for economic growth for those of people of color.

From the Black point of view, a banks is not just "a space where you can make a deposit or take out a loan," says Kevin Cohee, Chairman and CEO of OneUnited Bank, one of the largest Black-owned institutions in the U.S. "That's just one aspect of what banks can be."

OneUnited Bank's first loan under the Paycheck Protection Program, part of the federal response to the COVID-19 pandemic, "was to a single mother of seven, who drove for Uber," Cohee says.

Minority-owned banks, or what government agencies term minority depository institutions, have to have either most stockholders or the members of their boards of directors comprise persons of people of color. This is in contrast to the majority white boards of directors among the largest U.S. banks.

Minority-owned banks can open the doors to economic opportunity. We'll review of three ways that they can make a difference, and what could you do assist.

>> WHERE CAN I Find a good one:

1. The gap is closing for those who aren't banked

Checking and savings accounts are the two most common entry points for building a relationship with a bank however, around 7 million Americans do not have them. There's also an increase across racial and ethnic boundaries.

About 16 percent of Native American households, 14% of Black households and 12% of white Hispanic households don't possess bank accounts compared to 2.5 percent of white households, according to a 2019 Federal Deposit Insurance Corp. study of those who aren't banked.

Minority banks help in bridging this gap by providing greater numbers of people with low- or moderate-income communities than other banks, according to an annual FDIC review of minority-owned depository institutions or MDIs. For instance, the majority of the people that the typical Black-owned bank serves at 62% is African American, compared to the 6% of metro-area banks that are not MDIs in the report.

In addition, banking deserts or regions of the country where one must travel for miles to locate a bank, have historically been an issue for some races and ethnic groups, like Native Americans living on reservations.

"We collaborate with those who are typically out of banks] and they develop into long-term customers" says T.W. Shannon the chief executive officer of Chickasaw Community Bank, one of 17 Native American-owned banking institutions.

2. Growing wealth through home loans

The home is among the biggest contributors to wealth for many, however it is primarily a benefit for white Americans. Asian as well as Black borrowers made up about 6 and 7 percent of U.S. home purchases, in comparison to 60% made by white non-Hispanic borrowers as per a 2019 mortgage market report released by the Consumer Finance Protection Bureau. Native Americans accounted for less than 0.8% of home purchases.

Minority-owned banks provide larger home mortgages as well as small business loans to borrowers of color than banks from other regions offer, as shown in the FDIC report.

The case is the same for Chickasaw Community Bank, that is a means of making home loans for Native Americans. The bank also offers lease-to-own options, for example, in which the tribe acts as the lender by borrowing money from the bank, and a member of the tribe follows an affordable payment plan and increases their credit score. Eventually, the member owns their home.

"For our tribe which is that of the Chickasaw Nation, these are houses for people who had some credit issues in the past, but who now have a good stable income but might not be eligible to be eligible for any other loan program," Shannon says. "That's a niche market that too big-to-fail banks do not spend much time on."

3. Responding to business community needs in times of crisis

Small business loans are another priority for minority banks, and funding has gotten more dire due to the COVID-19 epidemic. Minority banks have granted more than 13,000 Paycheck Protection Program loans for the sum of $10.3 billion through August 2020, according to data provided by the Small Business Administration.

"We took on the small, hard loans and not the simple loans (to large corporations), and we did it not for the money , but to aid the people," Cohee says.

The majority of minority banks are community banks, which the FDIC defines as those that concentrate exclusively on conventional loans and core bank accounts and are not able to expand their geographic reach depending on the location. Community banks have more than stepped up their weight this year. While they account for only 15% of all bank loans they outperformed other banks in giving 30 percent of PPP loans in the context of the 2020 FDIC quarterly report, which ended in June. And these loans aid in protecting jobs.

"We saved over 1000 Oklahoma jobs by implementing this program," Shannon says of Chickasaw Community Bank. "One thousand jobs might not seem like much however in Oklahoma it's a huge deal."

He continues, "We were oftentimes calling the borrower to ensure that they were aware of these options and options for deferment aid were available. We were there for them even if they didn't realize we could be."

What can you do to assist minority banks

Minority-owned banks have a direct impact on the lives of many in underserved communities, but they are only 150, or about 3percent, of the 5,100 banks that operate in the U.S. Plus, they alone can't address systemic issues within the U.S. such as the inequality of wealth between racial groups that is where the average white family has eight times the amount of wealth as the average Black family, as per an annual Federal Reserve survey.

To support minority banks to help minority banks, you can deposit a small portion of your savings into a. ( ) Part of the business model of banks is to make use of money in checking and savings accounts to provide loans to small-scale businesses as well as homeowners. Some companies, such as Netflix for instance has begun to support Black banks.

Beyond banks, think about investing in businesses that focus on making a social impact, along with other .

Paraphrasing Eleanor Roosevelt, Cohee says, "We're all better off when we're all in better shape."

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

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A Budget Planning Worksheet for Free Worksheet

(image: https://burst.shopifycdn.com/photos/christmas-and-palm-trees.jpg?width=746&format=pjpg&exif=0&iptc=0)Advertiser disclosure You're our first priority. Every time. We believe that everyone should be able to make financial decisions with confidence. While our website does not include every company or financial product on the market, we're proud of the advice we offer as well as the advice we offer and the tools we develop are objective, independent simple, and free. So how do we make money? Our partners pay us. This can influence the products we write about (and where those products appear on our site), but it does not affect our advice or suggestions, which are grounded in many hours of research. Our partners are not able to promise us favorable reviews of their products or services. .

Free Budget Planner Worksheet

Add your income and expenses to this monthly budget template, and we'll show how your spending is aligned with the 50/30/20 rule.

By Lauren Schwahn Lead Writer | Personal finance and the debt Lauren Schwahn is a writer at NerdWallet who covers debt, budgeting and money-saving strategies. She is a contributor to the "Millennial Money" column in The Associated Press. The work she has contributed to was covered by USA Today, MarketWatch and other publications. Lauren has a bachelor's degree in the field of history at the University of California, Santa Cruz. She is located at San Francisco.

Updated 5 December 2022

Editor: Rick VanderKnyff Senior Assigning Editor | Los Angeles Times; University of California, San Diego; Microsoft Rick VanderKnyff leads the team that is responsible for expanding the content of NerdWallet to include additional subjects related to personal finance. Previously, he has worked as a channel manager at MSN.com as well as a web administrator at University of California San Diego and as an editor of copy and staff writer at the Los Angeles Times. He holds an undergraduate degree in Arts in communication, as well as an master of Arts in anthropology.

The majority or all of the products featured here come from our partners who pay us. This influences which products we feature as well as the place and way the product appears on a page. However, this does not influence our evaluations. Our views are our own. Here's a list and .

What is a budget-planning?

A budget planner is a piece of software like an worksheet or template that you can use to design your budget. A well-designed budget planner can help you decide how to best spend your money while cutting down or eliminating debt. NerdWallet suggests the , which suggests that 50% of your earnings goes toward needs, 30% toward wants and 20% toward saving and repayment of debt.

Before you create a budget, it is important to establish a plan.

NerdWallet breaks down your spending and helps you find ways to cut costs.

Develop a budgeting plan that works for you

The most effective financial planner will be one that that you can stick with, so tweak your approach as needed. For example the 50/30/20 breakdown can be a recommendation to help you get started. If you need to until you get to your ideal budget.

If a simple monthly budget template doesn't work for you, you might want to consider using one of . Most of them sync with your financial accounts, which means they can for you.

If you can't achieve your budget goals into reality, or if you're having trouble getting a grip on your finances, budgeting may not be enough for you. Consider other options, such as seeking out expert financial advice or resources that may help .

Monthly budget worksheet

Use the budget worksheet below to find out how your spending compares with the 50/30/20 budget guidelines.

If this budget sheet isn't for you Try a different tool. Explore other tools, or download a budgeting app. If you want a simplified overview check out our .

For other money matters take a look at the information provided by NerdWallet.

Want nerdy knowledge that's personalized to your budget? All your money will be in one place, and gain customized information to make the most of it.

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

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How Couples Can Work Together on Debt Repayment

Advertiser disclosure You're our first priority. Each time. We believe everyone should be able make financial decisions without hesitation. Although our site doesn't include every business or financial product that is available on the market We're pleased of the advice we provide as well as the advice we offer and the tools we develop are objective, independent easy to use and completely free. So how do we make 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 suggestions or recommendations which are based on many hours of study. Our partners are not able to pay us to guarantee favorable reviews of their products or services. .

How Couples Can Team Up to Repay Debt

If you brought the burden of debt to your marriage, your spouse can be your ally in becoming debt-free.

Written by Sara Rathner Senior Writer/Spokesperson | Credit cards, travel rewards credit cards, debt repayment Sara Rathner is a NerdWallet expert in credit and travel. She has been featured on the "Today" show, as well as the CNBC's "Nightly Business Report," and has been featured in The New York Times, The Washington Post, The Wall Street Journal, Yahoo Finance, Time, Reuters, NBC News, Business Insider and MarketWatch. Prior to making the move to NerdWallet, Sara worked at The Motley Fool for nearly 10 years. She also worked as a personal finance writer freelance as well as a paraplanner. She also holds an undergraduate diploma in journalistic studies in journalism from Northwestern University.

Updated Jan 30, 2023 6:09AM PST

Written by Kenley Young, Assigning Editor Credit scores, credit cards Kenley Young oversees the daily credit cards coverage for NerdWallet. Prior to that, he worked as an editor on the homepage as well as a digital content producer at Fox Sports, and before being a front-page editor for Yahoo. He has a wealth of experience in digital and print media, including times as a copy desk chief, a wire editor and an editor for metros for The McClatchy newspapers chain.

Many or all of the items featured on this page are provided by our partners who compensate us. This affects the products we feature and where and how the product is featured on a page. But, it doesn't affect our assessments. Our views are our own. Here is a list of and .

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Between helping financially his parents, and losing money as a result of the COVID-19 pandemic, Jeremy Mazza landed into serious . He received relief from a source he wasn't expecting: his girlfriend, Ginna Lambert, who had received a modest inheritance. The woman offered "investing" certain portions of the bounty in their shared future by loaning small amounts to Mazza that he could apply towards his obligations.

It took some convincing.

"To have to ask for money, even though I was the one who provided it and also had parents who were asking for money, I didn't want to follow in their footsteps and be taking," Mazza says. "But that's not what this wasabout, it was a gesture of kindness."

Mazza and Lambert took on the challenge with open communication and clear loan conditions. And for them, it's paying off: Mazza estimates his went up about 150 points. The couple, who live within Richmond, Virginia, are getting married this year, and they hope to buy a home soon as well.

"I was a person with a very, very vested interest in making sure my partner's credit score as well as finances were in the best of a state as they could be," Lambert says.

While joint debt is considered to be a shared responsibility but the individual debts that you bring into the marriage are yours to manage. But, they may get in the way of making plans for your life as a couple, and so it could be beneficial that your spouse help you with any debts you may have. Don't make an arrangement of this kind without having a strategy.

Make yourself vulnerable by reviewing the entire financial view

It's crucial to be transparent with one another about your personal financial circumstances especially when your relationship gets more serious.

"If couples are planning to get married it's good to talk to each other prior to wedding day," says Trina Patel, a Los Angeles-based senior financial advice manager at Albert, a financial services company.

Set aside a few free meetings with your money where you discuss about what's going on for each of you. The conversations will aid you in establishing shared goals and determine the actions to take to meet them, like making adjustments to your budget or finding ways to increase your income.

"Debt often triggers feelings of shame, guilt and embarrassment, which can cause spouses to not talk about the amount of debt they have," said Leanne Rahn, a financial advisor at Fiduciary Financial Advisors, located in Grand Rapids, Michigan, via email. "Vulnerability is hard but remember, you and your significant other are a unit."

Think about non-monetary ways to assist

You may be unable or unwilling to pay off the debts of your partner. There are many options alternatives, however. You can serve as an accountability buddy, help to rethink the budget of your family If you have a family, or figure out ways to be more frugal with your spending.

Maybe you can take on some more chores at home so that your partner has time to work on additional hours at work, or even help them edit their resume to get a better paying job.

Discuss a financial arrangement

If you're comfortable gifting or lending money to your partner to cover their debts, make sure you have the specifics. Specify dollar amounts and write the entire thing down.

Lambert, for example, started by offering a six-month free, no-interest $2000 loan for Mazza. Over time, they both were comfortable with further more substantial loans.

A consultation with an attorney regarding a contract can help both parties feel more at ease.

"A legally binding contract would definitely make the responsibilities of each spouse/significant other clear simple, with the law holding them accountable," Rahn says.

Be aware of when to say "no'

It's okay not to shoulder someone else's financial burden regardless of how much you care about them. If your relationship is relatively new, or you're not sure what the future holds, you can still be cheering on your spouse as they pay down their debt.

And if your partner won't take your "no" as an answer, take it as a and proceed with caution.

"I would not have suggested this if we were still in our honeymoon stage," Lambert says. "At this point we were already settled in together. He had proved, time and time again, that he was reliable."

This piece originated from NerdWallet and was originally printed in The Associated Press.

Author bios: Sara Rathner is a NerdWallet credit cards and travel expert. She has appeared in the "Today" talk show as well as Nasdaq and CNBC's "Nightly Business Report."

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4 Cash-Raising Problems (and Better Options)

Advertiser disclosure You're our first priority. Every time. We believe everyone should be able to make financial decisions without hesitation. Although our website does not feature every company or financial product on the market however, we're confident of the advice we provide and the information we offer and the tools we create are objective, independent simple, and free. How do we earn money? Our partners compensate us. This may influence which products we write about (and the places they are featured on the website) However, it doesn't affect our advice or suggestions that are based on hundreds of hours of study. Our partners cannot promise us favorable reviews of their products or services. .

4 Cash-Raising Problems (and Better Options)

If you're in need of cash quickly take a moment to consider which options can hurt you in the long term.

Written by Liz Weston, CFP(r) Senior Writer | Personal Finance economics, credit scores Liz Weston, CFP(r), is a personal finance columnist, co-host on"Smart Money," the "Smart Money" podcast an award-winning journalist, and the creator of five novels about financial matters, among them the bestselling "Your credit score." Liz has appeared on numerous radio and national TV shows including"Today," the "Today" talk show "NBC Nightly News," The "Dr. Phil" show and "All Things Considered." Her columns are published through The Associated Press and appear in hundreds of media outlets weekly. Prior to NerdWallet, she wrote columns for MSN, Reuters, AARP The Magazine and the Los Angeles Times. She shares a home in Los Angeles with a husband along with a daughter and a golden retriever that is co-dependent.

Published Aug 5, 2021 at 5:00AM PDT

Edited by Kathy Hinson Lead Assigning Editor Personal finances, credit scoring managing money 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 positions such as copy desk chief and team leader for design and editing. Prior experience includes news and copy editing for various Southern California newspapers, including the Los Angeles Times. She received a bachelor's degree in mass communications and journalism from the University of Iowa.

A majority of the items featured on this page are from our partners, who pay us. This impacts the types of products we write about as well as the place and way the product is featured on a page. However, it does not affect our assessments. Our views are our own. Here is a list of and .

If you're faced with more bills than income, the typical suggestion is to cut down on costs and make additional money. But some ways of are more costly than other. Here are four that must be avoided if possible, and what you should be thinking about instead.

Beware raiding a retirement plan

A big chunk of the contributions to retirement plans gets sucked out in cash-outs in the event of job changes or loans that aren't repaid. A recent study conducted by the Congressional Joint Committee on Taxation estimated that each year, 22% of contributions made by people aged 50 or younger is prematurely withdrawn typically in cash-outs when workers leave jobs.

They are, however, usually costly and could leave you with a small amount of savings in retirement. You typically must pay penalties and taxes on distributions and you forfeit all compounding tax-deferred that your money could have earned.

There are alternatives. If you're still employed you could borrow out of you 401(k) or halt retirement plan contributions for a short period to free up cash. If you have a Roth IRA, you can withdraw an amount equal to your contributions without owing taxes or penalties.

If you can't stay clear of a large-scale withdrawal, you can minimize the damage by taking out only the amount you require and allowing the remainder to expand. For instance, if you're resigning from your job, you can roll over in your 401(k) account to an IRA and only take what you require out of the IRA. It could save you from having to cash out the whole account.

Be sure to take advantage of health insurance.

You might be in good health right now, but you're just one bad injury or accident away devastating medical bills.

If you're not able to get access to health insurance coverage through your job, look up the Affordable Care Act exchanges at . The cost of premiums has been reduced for most people this year, and coverage can be free for many, including people who get unemployment benefits this year.

A study by the non-partisan health think tank KFF found that the number of people who qualify for subsidies has increased by 20% because of American Rescue Plan Act passed in March. Additionally, nearly 4 of the uninsured people could be eligible for a free or close to free plan.

It is also possible to lower your premiums by opting for high-deductible plans. This means that you will have to pay hundreds of dollars from your pocket if you get sick or injured, but at least you won't face the kind of six- or five-figure costs that can bankrupt you.

Beware high-cost loans

Among the most expensive ways to borrow are , car loan title loans or loans that don't require a credit check. High-cost loans can make it simple to slip into a cycle of debt, where you are unable to pay the loan and are forced to borrow again. Car title loans can put your car at risk of being seized in the event of non-payment.

They may not be as quick or convenient however, they're usually better for your financial health:

If you require help with paying bills, begin by looking up 211.org which is a clearinghouse for government and charitable resources.

If you're unable to pay back the loan you can inquire with the lender about forbearance and other hardship options.

If you have credit card, you should consider a cash advance. These typically incur double-digit rates of interest, however high-cost loans typically have triple-digit rates.

If you're employed, ask your employer for an advance on your paycheck or an emergency loan.

Another option is if you're employed: such as Earnin, Dave or Brigit. Be cautious, however, because the charges can make these loans as expensive as payday loans and put you in a similar cycle of debt if you rely on these loans.

Don't be stiff with the IRS

If you aren't able to pay the taxes, then it might be tempting to not file a return. But failing to file carries much higher penalties than failing to pay, according to CPA Neal Stern, a member of the American Institute of CPAs' Financial Literacy Commission. Additionally, there's no limitation on audits if you fail to make a filing. The IRS could be able to pursue you for several years or even decades after the fact.

The IRS has payment plans that allow you to pay your bill in installments over the course of time. You can also charge a tax payment to a credit card or consider getting an individual loan to pay what you have to pay, Stern says.

The solution is to not ignore the issue. solution. There is a solution. IRS has automated processes that match up forms like 1099 and W-2 to tax returns, and if there is a gap, it could quickly trigger the form of a computer-generated discrepancy notification as well as an audit Stern says.

If you are owed money and you don't pay it, the IRS may seize your banking accounts or garnish your wages and other income until the remaining taxes, penalties and interest is paid, Stern says. The IRS can even seize and sell your property.

"The IRS is probably the most powerful and relentless collection agency you'll meet," Stern says. "If you are owed taxes, you should pay as much as you can, as soon as you are able."

This piece was written by NerdWallet and was originally published by the Associated Press.

About the author: Liz Weston is a columnist at NerdWallet. The author is also a registered financial planner, and author of five money books, including "Your Credit Score."

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What is Plastiq and How Does It Function?

Advertiser disclosure You're our first priority. Each time. We believe that everyone should be able to make sound financial decisions without hesitation. 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 as well as the advice we offer and the tools we create are independent, objective, straightforward -- and completely free. How do we earn money? Our partners compensate us. This could influence the types of products we review and write about (and where they are featured on our website) however it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners do not pay us to guarantee favorable review of their services or products. .

What Is Plastiq and How Does It Work?

For a cost, Plastiq lets you use debit or credit cards to pay for expenses that don't typically accept cards for payment.

by Melissa Lambarena Lead Writer | Credit cards and the debt Melissa Lambarena is a lead writer for the credit card team at NerdWallet. She has been a passionate writer covering credit card-related topics for over six years. Her prior experience includes nine years of experience as an author for various publications and websites. With her efforts, she strives to help readers extract benefits from credit cards in order to help them achieve financial goals such as stretching their budget, building credit, traveling to their dream destinations, and paying off debt. She explores these topics and others in and The Millennial Money column featured in The Associated Press. Her work has also been published in The New York Times, Chicago Tribune, The Washington Post, USA Today and Yahoo Finance, among others. Melissa holds a bachelor's degree in sociology at the University of California, Los Angeles.

Updated February 10, 2023 at 10:13 AM PST.

Written by Kenley Young, the Assigning Editor Credit scores, credit cards Kenley Young directs daily coverage of credit cards for NerdWallet. Previously, he was an editor on the homepage as well as a digital content producer for Fox Sports, and before being a front-page editor for Yahoo. He has years of experience in digital and print media, including times as a copy desk chief as well as a wire editor as well as a metro editor for the McClatchy newspapers chain.

The majority or all of the items featured on this page are provided by our partners, who pay us. This influences which products we review and where and how the product is displayed on a page. However, this does not affect our assessments. Our opinions are entirely our own. Here is a list of and .

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It is a service that lets individuals and businesses use credit or debit cards to pay for vendors who don't otherwise accept those payment methods.

As a way to provide this convenience, Plastiq charges you a processing fee that can be expensive at the time of writing, December 2022 . And of course, if you're using a credit/debit card and aren't able to pay your charges each month, you'll incur interest depending on the current rate your card charges.

However, if you require relaxation while you wait for your paycheck or windfall to come in, Plastiq could be cheaper than a high-interest option such as a loan or depending on whether you are able to pay off the debt quickly and in particular when you have an rewards credit card that will pay for the processing fees.

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Plastiq The fundamentals of Plastiq

Plastiq offers one-time or recurring payments for bills such as mortgage or other loans, utility bills, daycare homeowners association fees and other charges. You add a debit or credit/debit card in your Plastiq account and debit to the value of your bill and Plastiq pays the company on your behalf via the method the vendor accepts: , or a paper check. (Checks are, for example, appear to the vendor as coming from you, and not coming from Plastiq.) The recipient does not need an account with Plastiq account to accept payment.

" Plastiq is a service that allows businesses and individuals to make use of credit or debit cards to pay merchants that aren't able to accept other payment methods. "

Plastiq generally will charge an average of 2.9 percent fee for credit and debit cards. Conditions apply. The service is compatible with:

Visa.

Mastercard.

Discover.

.

However, some credit cards are restricted in the kind of bills that you can pay through Plastiq. For instance, Visa cannot be used to make mortgage payments through the bill pay service.

Additionally, Chase recently unveiled a and it's not known what consequences that may have for transactions that are processed using the Chase card through Plastiq.

Nerdy Tip

As of February. 10, 2023, Plastiq will no longer take American Express.

How does it work

Begin by creating a free account on Plastiq and then adding your debit or credit card information. You can add multiple cards and pick one as your default.

You'll also need to add recipients, including the name of the vendor and their country. The information you provide will be stored in your account for future reference.

" Checks typically take around eight days to be delivered according to the website of Plastiq, so build in some time on your calendar to avoid making payments late. "

To make a payment choose the recipient, the amount to be paid, the recipient's preferred payment method (ACH wire transfer, wire transfer, or check) and the due date for the money to be received. It is also possible that you need specific details regarding the bill you're paying, like, for example, a loan number for the mortgage, a unit number for rent due on an apartment, and so on. You can add more details in the "memo" area.

It is possible to make a one-time payment, or set them up to run automatically. If you are a recipient who accepts cheques via snail mail, you may be required to send the check sooner than normal. Checks generally take 8 days to arrive, according to Plastiq's website So, make sure to include some extra time on your calendar to avoid having to pay in the late hours.

Plastiq gives an explanation of the charges, which are in the form of dollars as well as a percentage, on the payment review screen prior to completing the transaction. When you instruct Plastiq to send the payment, you'll receive multiple email confirmations from the company along the way, such as an acknowledgement of the initial transaction, an email when a check is delivered physically to the merchant for the payment and a confirmation when the recipient has deposited it. (If there is a reason why your payment cannot be processed, Plastiq will notify you.)

Nerdy Tip

Certain credit cards might not work with third-party bill payment services. Before using one, review the terms and conditions, or inquire from the issuer on how (or what) the payment will be processed. It might be treated as a cash advance instead of a purchase. Plastiq states that it alerts clients and blocks payments prior to when they are considered cash advances.

The costs

For debit cards

The helpfulness of charging a debit card via Plastiq isn't that great. The charges will be a 2.9 percent processing cost, which you'd otherwise avoid by simply writing your personal check directly to the seller. (Plastiq was previously charging just 1% on debit cards, but it increased the fees to match that on credit cards in March 2022.)

But if you don't care to order personal checks, get stamps, visit the post office or the post office, etc. If so, Plastiq can cut these corners for you. However, be sure to use the service only when it doesn't expose you to the risk of overdrawing your account.

For credit cards

Credit cards have a more interesting use case because, in effect, Plastiq lets you pay off bills prior to having the actual cash available. Then, floating your money using a credit card in this way is a potentially more affordable alternative to alternatives like cash advances.

" The option of floating your money using credit cards this way could be a less costly alternative to other options such as cash advances. But it's certainly not without risk or expense. "

But it's definitely not without cost or risk. To begin the 2.9 percent processing cost might not seem like much, but if you're using Plastiq to cut a $2,000 rent check and you add $58 to your final total. A rewards card that earns, for instance, a lower cost, but you'll hard-pressed to dodge it entirely unless you are collecting a sign-up bonus via the spending.

If you are unable to afford to pay off the $2,058 amount in your credit card's billing cycle, you'll get hit with the card's ongoing interest rate -- and rewards cards tend to have the most high annual percentage rates of all, many over 20%.

>> MORE:

Nerdy Tip

Credit card transactions can give you some time to save interest costs. Grace periods are the time period between the conclusion of your billing cycle until the time your due date for payment arrives. Grace periods do not apply to cash advances made by credit cards however, they may be applicable to a payment service such as Plastiq. Keep in mind, however, that if you have an outstanding balance, your card issuer will eliminate your grace period.

The most important thing is the bottom line

In short, Plastiq is a service which is best employed in a strategic manner. It can help you hang on to cash reserves if you need these in the short-term as well as being relatively inexpensive when compared to other options for cash in a hurry.

However, using it to pay bills you can't afford initially will be expensive and insufficent after the revolving credit card's interest kicks in.

The author's bio: Melissa Lambarena is a credit cards writer at NerdWallet. She has had her work featured on The Associated Press, New York Times, Washington Post and USA Today.

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(image: http://www3.ufrb.edu.br/lehrb/wp-content/uploads/2016/05/13234634_1055843311120031_2107447993_o.jpg)Emergency Fund What is it and Why It Matters

Advertiser disclosure You're our first priority. Each time. We believe that every person should be able to make financial decisions with confidence. Although our website does not include every financial or company product available on the market We're pleased that the guidance we offer as well as the advice we offer and the tools we develop are independent, objective, straightforward -- and free. How do we earn money? Our partners compensate us. This can influence the products we write about (and where those products appear on the site) however it in no way affects our advice or suggestions, which are grounded in hundreds of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. .

Emergency Fund What is it and why it is important

It is best to save it in savings accounts, an emergency fund is useful for unexpected costs.

By Margarette Burnette Senior Writer Savings accounts and money market accounts bank accounts Margarette Burnette is an specialist in saving and has written about bank accounts since before even the Great Recession. Her work has been published in various major newspapers. Before joining NerdWallet, Margarette was a freelance journalist with bylines in magazines like Good Housekeeping, and Parenting. Margarette is located near Atlanta, Georgia.

Updated February 17, 2023

Reviewed by Kathleen Burns Kingsbury Wealth psychology expert and coach Kathleen Burns Kingsbury, founder of KBK Wealth Connection and host of the Breaking Money Silence podcast, is a widely published author and speaker. As an expert in the psychology of money, Kathleen is a regular on the television and has been highlighted on The New York Times, The Wall Street Journal, "PBS NewsHour," Money magazine, Today Money, Forbes and CNBC. Kathleen served as an adjunct faculty instructor at McCallum Graduate School from 2009 to 2019. McCallum Graduate School at Bentley University from 2009 until 2019. She is currently teaching for the Champlain College. Champlain College.

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The information on investing provided on this page is for educational purposes only. NerdWallet is not a broker or advisor. or brokerage services, nor does it recommend or counsel investors to purchase or sell specific securities, stocks or other investments.

What is an emergency account?

The emergency funds is a bank account with money set aside to pay for large, unexpected expenses, such as:

Unforeseen medical costs.

Repair or replacement for your home appliance.

Major car repair.

Unemployment.

Compare the top savings accounts

Find a savings account that is high yielding with a great rate. Compare rates against each other.

What is the reason I should have an emergency fund?

The emergency fund is a financial buffer that can keep you going in moment of crisis without relying for credit or loans. It is especially crucial to have an emergency fund in case you are in debt because it can help you avoid borrowing more.

How much should I save?

The quick answer is: If you're starting out start by putting aside a sum that will cover an important bill like $500. But keep working your way up. It's best to end up at about half of a year's expenses.

The answer is long and complicated is: The best amount you should spend depends on your financial circumstances A common sense guideline is to have enough to cover three to six months worth in living costs. (You might need more if you freelance or work seasonally for instance or if your position would be hard to get replaced.) If you do lose your job, you may use the money to cover the costs of living until you find a new one, or the funds could be used to supplement your unemployment benefits.

Savings can keep you from financial difficulties. Put something away today, and then build up your fund over time.

>> Looking for top savings alternatives? Here are our top picks for you

Where do I put my emergency money?

Ideally, you'd place your emergency fund into the savings account that offers a high interest rate and quick access. Because an emergency can strike at any time being able to access it at any time is crucial. So it shouldn't be tied to a longer-term investment fund. But the account should be separate of the bank account you use daily and you shouldn't be tempted to use your savings.

A is a great location to store your money. It's federally insured up to $250,000 per depositor, for each ownership category, and per financial institution, making it safe. (Read more about the way that savings accounts are federally insured by the Federal Deposit Insurance Corp. (also known as ) , and the National Credit Union Administration, or .) In addition, the money earns interest, and you have access to your cash quickly when needed either through withdrawing it or by transferring funds.

Although a savings account can be an excellent option, individuals may not be able to get one immediately. If a bank has closed an account you had previously, for example, it may have reported the closure to an agency for consumer reports for example . That can prevent the new bank from accepting your application for a new account. If that's the case you have choices. You can collaborate with the agency . Also, consider opening an account . After a couple of months of building an impressive bank history it is more likely that you will be able to establish a solid interest-earning account.

Saves CD Management Checking Money Market

Member FDIC

Savings and SoFi Checking

APR 4.00 percent SoFi customers who have direct deposit can receive up 4.00 per cent per year in annual percentage yield (APY) on savings balances (including Vaults) and 1.20% APY on checking balances. There is no minimum amount for direct deposits needed to earn the 4.00% APY for savings. Members without direct deposit will receive 1.20 percent APY on their total balances of their checking accounts and savings (including vaults). Interest rates are variable and may change at any time. The rates shown are current as of 03/17/2023. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet

Min. balance to APY $0

Member FDIC

Marcus is a product of Goldman Sachs Online Savings Account

APY 3.75 percent 3.75% APR (annual per cent yield) with no minimum balance to earn the APY stated. Accounts must have a positive balance to remain open. APY current as of 02/14/2023.

Min. balance to APY $0

Member FDIC

CIT Bank Platinum Savings

APY 4.75 percent

Min. balance to APY $5,000

These cash accounts combine features and services similar to checking, savings and/or investment accounts into one product. Cash management accounts are typically offered by non-bank financial establishments.

The cash accounts offer features and services that are similar to savings, checking and/or investment accounts into one product. Cash management accounts are usually offered by non-bank financial establishments.

on Wealthfront's site

Wealthfront Cash Account

APY 4.30%

Min. balance required for APY $1

on the Betterment's website.

Betterment Cash Reserve - Paid non-client promotion

APY 4.20 Percentage of annual percent yield (variable) is at 03/27/2023.

Min. balance for APY $0

CDs (certificates of deposit) are a kind of savings account that comes with the option of a fixed rate and time typically, they have higher interest rates than traditional savings accounts.

CDs (certificates of deposit) are a type of savings account with an interest rate fixed and a term typically, they have higher rates of interest than traditional savings accounts.

Member FDIC

Marcus by Goldman Sachs High-Yield 10-Month CD

APY 5.05 percent 5.05 5 % APY (annual percentage yield) as of 03/28/2023. Special Offer Ends 09/15/2023.

Term 10 months

CIT Bank CD with no penalty

APY 4.80 percent

Term 11 months

Checking accounts are utilized for day-to-day cash deposits and withdrawals.

Checking accounts are utilized for cash deposits on a regular basis as well as withdrawals.

They are FDIC Insured

Current Account

APY N/A

Monthly fee $0

Chime Checking Account

APY N/A

Monthly fee $0

Member FDIC

Axos Bank(r) Rewards Checking

APY 3.30% Your annual percentage yield can be as high as 3.30 percent, according to the following rate rewards Direct deposits (not including intra-bank transfers from an account) totaling $1,500 or more every month earn 0.40 percent. A qualifying direct deposit is required to satisfy to meet the other interest rate eligibility to be eligible. Ten (10) point-of-sale transactions each month using the Rewards Checking Visa(r) Debit Card to make regular purchases, with minimum $3 per transaction, or by enrolling in Account Aggregation/Personal Financial Manager (PFM) will earn 0.30 percent; and maintaining your average balance per day of $2,500 per month in an Axos self-directed trading Invest account earns 1.00 percent. Maintaining an average daily balance of $2,500 a month within an Axos Managed Portfolio Invest account will earn 1.00 percent; and making each month a payment to an open Axos bank consumer loan (commercial or business loans excluded) via transfer from your Rewards Checking account earns the maximum amount of 0.60 percent.

Monthly fee of $0

Money market accounts pay rates that are similar to savings accounts. They also have some checking features.

The money market accounts have rates that are similar to savings accounts, and come with certain checking features.

Member FDIC

The Discover Bank Money Market Account

APY 3.50 percent

Min. balance to APY $1

How can I create an emergency fund?

Determine the amount you wish to save. Utilize the following formula if need help figuring out the expenses you will incur for six months.

Set a monthly savings goal. Instead of focusing on a single big savings goal, concentrate on smaller, achievable monthly goals. Meeting monthly goals can provide you with positive momentum and motivate you to continue saving. This will help you stay on top of the and make the overall job less difficult.

Transfer money to your savings account automatically. If your employer offers direct deposit, inquire if they could divide your paycheck between checking and savings. So your monthly savings goal can be taken care of without any funds being deposited into accounts for checking.

Keep the change. Use mobile technology to automatically save each time you make a purchase. Savings accounts are available they connect to checking accounts and other spending accounts to add up the purchase amounts on your transactions. The extra amount is automatically transferred into a savings account.

Save any tax-free refund. You can only get this once per yearbut only if anticipate receiving a refund. Saving it can be an easy way to boost your emergency stash. When you file your taxes, consider having your refund direct deposited into your emergency account. You could also think about adjusting your to have less money to withhold. If modifying your deductions is an option that is suitable for you, you could put the extra money into your emergency reserve.

Assess and adjust the amount of your contributions. After some time to check how much you're saving, and adjust if needed. If you've saved enough money to pay for six months of expenses, you might consider putting extra cash in .

Here's what you should do if you think you may have

When saving make sure you draw a distinction between emergencies and everything else. In fact, once you've reached a certain amount in emergency funds, it's probably a great idea to begin another " " savings account to fund things that aren't always expected, such as car maintenance or vacations, as well as clothes. If you need help staying organized, you might want to open different savings accounts, or even subaccounts to meet different financial goals.

Everyone should be saving for the unforeseeable. A reserve fund can make the difference between surviving an economic storm that is short-term or falling into debt.

Use this calculator to start. It will only take about a minute:

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Author bios: Margarette Burnette is a savings account specialist at NerdWallet. Her work has been highlighted by USA Today and The Associated Press.

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