Credit Account – How To Occupy http://howtooccupy.org/ Wed, 29 Jun 2022 09:00:29 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://howtooccupy.org/wp-content/uploads/2021/07/icon.png Credit Account – How To Occupy http://howtooccupy.org/ 32 32 How MOHELA Student Loan Forgiveness Works – Forbes Advisor https://howtooccupy.org/how-mohela-student-loan-forgiveness-works-forbes-advisor/ Wed, 29 Jun 2022 09:00:29 +0000 https://howtooccupy.org/how-mohela-student-loan-forgiveness-works-forbes-advisor/ Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors. Over the past two years, there has been a lot of turmoil within the federal student loan system. Some of the proposed changes brought relief to borrowers, such as temporarily pausing monthly […]]]>

Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

Over the past two years, there has been a lot of turmoil within the federal student loan system. Some of the proposed changes brought relief to borrowers, such as temporarily pausing monthly payments and interest charges due to the Covid-19 pandemic. But other long-term adjustments have only added to the confusion.

One of the biggest disruptions is the transfer of federal student loan accounts that were previously held by FedLoan Servicing to the Missouri Higher Education Loan Authority (MOHELA). If you have federal student loans managed by MOHELA and want loan forgiveness, here’s what you need to know about MOHELA student loan forgiveness.

What is MOHELA?

MOHELA has over 40 years of experience as a federal student loan manager. It is one of the loan services, along with others like Nelnet and Great Lakes, that has extended its federal service contract until at least 2023.

As a loan manager, MOHELA helps borrowers manage their federal loan accounts and payments. This includes handling billing questions and general inquiries as well as providing information on refund options.

Responsibilities of the New MOHELA Loan Manager

MOHELA recently became the exclusive student loan manager for two federal programs: the Public Service Loan Forgiveness (PSLF) and the Teacher Education Assistance Grant for College and Higher Education (TEACH). This role previously belonged to the Pennsylvania Higher Education Assistance Agency (PHEAA), also known as FedLoan Servicing, which will exit the service industry after its contract expires.

Borrowers who were on track for student loan forgiveness under the PSLF program or who received a TEACH grant will have their student loan accounts transferred to MOHELA beginning in July 2022. As interim manager for PSLF, MOHELA will now be responsible for guiding the two new PSLF-eligible borrowers through the program requirements and application process.

Can I get student loan forgiveness through MOHELA?

Although you can work directly with the service agent, there is no specific MOHELA student loan forgiveness program. Instead, MOHELA oversees your eligibility for the Ministry of Education’s PSLF and TEACH grant programs.

For example, if you are pursuing PSLF and believe you have met the requirements, you will submit an official application to MOHELA. The servicer will process this and review your student loan account, work history, and repayment records. If MOHELA finds that you meet the eligibility criteria, it will update your account accordingly.

If you have received a TEACH grant, MOHELA will monitor your progress toward completing the required five-year service obligation. If you do not respect your teaching contract, your loan will be converted into a direct subsidized loan managed by MOHELA.

4 forgiveness programs via MOHELA

Here are some of the remission programs available for federal student loans, including those serviced by MOHELA.

PSLF

As mentioned, the PSLF is a notable federal student loan forgiveness option available to borrowers with direct loans, which is now managed by MOHELA. You may be eligible for this program if you:

  • Work full-time for an eligible employer. This includes federal, state, local, and tribal government organizations as well as nonprofits.
  • Make 120 qualifying payments. You must enroll in one of the Income Contingent Repayment (IDR) plans and make 120 qualifying payments for your direct loans.

If you meet these conditions, the remaining balance of your direct loan may be tax exempt.

Teacher loan forgiveness

Another option is teacher loan forgiveness. Unlike the PSLF, this program is not managed by MOHELA. But if you have loans managed by MOHELA and you meet the conditions, you could be eligible to have some of your debt forgiven.

To be eligible, you must:

  • Be a highly qualified teacher. This means that you have earned at least a bachelor’s degree, received full state certification, and certification or licensing requirements have not been waived on an urgent, temporary, or interim basis.
  • Complete a service contract. You must teach full-time for five full, consecutive academic years at a low-income school or educational service agency.

You can get $5,000 or $17,500 rebated on your loans, depending on the subject you teach. Also note that you cannot get credit for Teacher Loan Forgiveness and PSLF at the same time.

Sorry

If you’re struggling to make your payments, signing up for an income-driven repayment plan might be a good idea. In this type of plan, your monthly payments will be based on your adjusted gross income and your family size. All managers, including MOHELA, can place borrowers on an IDR plan upon request.

Additionally, any remaining balance on your loans could be canceled after making payments for 20 or 25 years, depending on the plan. Keep in mind that unlike the PSLF, IDR remittance is not tax exempt.

You can choose from four types of IDR plans:

  • Pay as you earn (PAYE): If you sign up for PAYE, your payments will be capped at 10% of your Discretionary Income, and you could have your remaining balance canceled after 20 years. To qualify, you must be able to demonstrate partial financial hardship.
  • Pay As You Earn Review: On the REPAYE plan, your payouts will be 10% of your Discretionary Income – note that this payout amount is not capped as with other IDR plans. If you borrowed for an undergraduate degree, you may be eligible for forgiveness after 20 years, while graduate loans can be forgiven after 25 years.
  • Income Based Reimbursement (IBR): On this plan, your payments are limited to 10% or 15% of your discretionary income, and your loan balance can be canceled after 20 or 25 years, depending on when you took out your loans. As with PAYE, you must have demonstrable partial financial hardship to qualify for IBR.
  • Income Contingent Reimbursement (ICR): If you enroll in ICR, your payments will be 20% of your Discretionary Income (or the amount you would pay on a 12-year income-adjusted plan) and your loans can be forgiven after 25 years. Note that this is the only IDR plan available to borrowers with parent PLUS loans, although a PLUS loan must first be consolidated into a direct consolidation loan before you can enroll.

Federal loan release programs

In some cases, borrowers might be eligible to have their federal student loans forgiven, which might be helpful if you don’t qualify for the forgiveness.

Some of the output programs available include:

  • School outing closed: For borrowers whose schools closed during their enrollment or shortly after their withdrawal
  • Exit from total and permanent disability: For borrowers in total and permanent disability
  • Deadly discharge: Available if the primary borrower or the student who received a PLUS parent loan dies

Generally, a loan release involves a special circumstance that allows you to stop making further payments for your federal student loans. Each program has its own criteria that you will need to meet as well as the documentation that you will need to provide to qualify.

How to contact MOHELA

If your student loans have recently been transferred to MOHELA and you have questions about your loan forgiveness options and eligibility, contact Student Loans directly. You can call their customer service toll-free at 888-866-4352 during their business hours:

  • Monday: 7 a.m. to 10 p.m. CT
  • From Tuesday to Friday: 7 a.m. to 7 p.m. CT
  • Saturday: 9 a.m. to 1 p.m. CT

You can also contact the repairer by fax at (866) 222-7060 or by mail at:

MOHELA

633 Spirit Drive

Chesterfield, MO 63005-1243

Compare student loan rates in minutes

Compare rates from participating lenders via Credible.com

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SMECO issues credits to members https://howtooccupy.org/smeco-issues-credits-to-members/ Sat, 25 Jun 2022 13:00:00 +0000 https://howtooccupy.org/smeco-issues-credits-to-members/ SMECO is repaying member capital credits totaling nearly $7.1 million. Of this total, a general refund of approximately $4.7 million will be issued in July. Eligible active members will receive credits on their bills and checks will be issued to eligible past members. Special refunds of approximately $2.4 million will be paid throughout the year […]]]>

SMECO is repaying member capital credits totaling nearly $7.1 million. Of this total, a general refund of approximately $4.7 million will be issued in July. Eligible active members will receive credits on their bills and checks will be issued to eligible past members. Special refunds of approximately $2.4 million will be paid throughout the year to include the estates of deceased members.

SMECO’s margins for 2021 totaled over $24 million. SMECO uses margins – revenue minus expenses – as working capital for new construction, system improvements and facility upgrades. Sonja M. Cox, President and CEO of SMECO, explained, “Our members help fund SMECO’s operations, and they can be assured that we are investing in infrastructure and technology that will benefit them. »

Cox added: “SMECO customers invest in their co-op every time they pay their bill, and we are responsible for keeping the lights on. But, because our customers are our members, we also exercise a basic cooperative principle by sharing with them part of SMECO’s margins. SMECO’s margins are based on the co-op’s income and expenses, not the cost of energy. Although the cost of energy has increased over the past year, SMECO does not make any profit on energy costs and energy tariffs have no impact on SMECO’s margins.

At the end of each year, SMECO’s margins are allocated to a special account for each member, based on the amount of electricity purchased by the member and the rate at which the account was billed. SMECO’s Board of Directors regularly assesses the cooperative’s financial situation and determines when Capital holdings of SMECO members will be refunded. Refunds will be credited to members’ invoices beginning July 11 and checks will be mailed to eligible past members beginning July 25.

All eligible active members will receive a credit on their main account bill. If members wish to contact SMECO to designate their primary account, they can call 1-888-440-3311. Eligible Former Members will receive a full refund of their Capital Credit Account balance if the balance is $100 or less. Any remaining balance attributable to allocations made during 1988 will also be returned to eligible members and former members. Whenever SMECO members leave the co-op’s service area, they should contact SMECO to update their mailing address in order to receive refund checks in the future.


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Tap into a growing market share of underserved borrowers with Newrez’s smart series – NMP https://howtooccupy.org/tap-into-a-growing-market-share-of-underserved-borrowers-with-newrezs-smart-series-nmp/ Thu, 23 Jun 2022 12:44:56 +0000 https://howtooccupy.org/tap-into-a-growing-market-share-of-underserved-borrowers-with-newrezs-smart-series-nmp/ “In 2021, there were at least 59 million gig workers in the United States,” according to statistics compiled by Zippia. Although this number may seem insignificant, it is misleading; these 59 million gig workers represent one-third of the entire American workforce. The way we work is changing, and so is the way we live – […]]]>

“In 2021, there were at least 59 million gig workers in the United States,” according to statistics compiled by Zippia.

Although this number may seem insignificant, it is misleading; these 59 million gig workers represent one-third of the entire American workforce. The way we work is changing, and so is the way we live – and we, as part of the housing process, need to stay up to date.

Introducing… NewRez’s Smart Series Loans including SmartSelf, SmartVest and SmartEdge.

With Non-Qualified Mortgages, and in particular the Smart Series, borrowers have access to financing solutions that might make more sense for their finances – they are the answer to our changing environment when it comes to helping customers to buy houses and properties.

So what types of borrowers could benefit from Smart Series?

  • Independent borrowers.
  • Self-employed, gig economy workers.
  • Real estate investors.
  • High net worth borrowers.
  • Buyers on commission.
  • Business owners.
  • Homebuyers with investments, trust funds, significant assets or low reportable income.
  • Borrowers with high debt ratios.
  • Homebuyers with less than perfect credit.

As customers and their situations come in all financial states and sizes, let’s take a look at some hypothetical cases where Smart Series Loans could bridge the difference between customers having access to loans or not.

Newrez SmartSelf: a mortgage for self-employed borrowers

Andrew is a full-time worker who lives in Dallas, Texas. He’s enjoying the newfound freedom he’s found, having left a traditional nine-to-five career after ten years as an accounts receivable clerk. He now splits his time between a few different apps – driving for a rideshare app, playing personal shopper and working as a creative writing freelancer. With this life change, Andrew also wants to buy a two-bedroom house for his family and move out of his current expensive apartment.

What are his chances?

As a non-QM (non-qualified mortgage) borrower, Andrew clearly will not be able to apply for many traditional loan programs without W2 income. A non-QM path can open up his opportunities – he can use his bank statements and 1099s as part of alternative documentation, stagger his loan repayments with his income using flexible terms, and already arrive with the understanding that his debt-to-income ratios are temporarily higher as he becomes a full-time worker and a freelancer. Yes; getting a loan is always possible.

Benefits of SmartSelf loans include:

  • Alternative documentation is permitted.
  • Credit requirements are less stringent.
  • Flexible terms such as interest only payments.
  • Higher debt ratios are permitted.
  • Purchase, refinance and withdrawal options remain available.

Newrez SmartEdge: for borrowers who do not meet the Jumbo guidelines

To be honest, Vanessa from Nashville, Tennessee has had a tough few months. In January, she was in a car accident where she was fortunately not injured, but her car was destroyed, which forced her to withdraw a small advance from a credit card from a chain store to pay a deposit for a new car. In March, she needed an emergency root canal, for which she opened a new credit card account, and in April, her job cut her hours in half. While she’s doing this, a few payments on those accounts had to slip into collections to pay her rent, so her credit now has two recent overdue payments/collections alongside the new auto loan and the credit account.

She couldn’t qualify for a mortgage now, could she? Well, not necessarily.

Of course, Vanessa will have more success with non-QM (non-qualified mortgage) programs – in this case, the SmartEdge program would be beneficial, as the program offers competitive financing to borrowers who are just outside the traditional scope in due to a recent loan. activity. By using SmartEdge, Vanessa may be able to qualify given other offers discussed with a loan officer.

SmartEdge has its advantages, like SmartSelf:

  • Alternative documentation is permitted.
  • Credit requirements are less stringent.
  • Flexible terms such as interest only payments.
  • Higher debt ratios are permitted.
  • Purchase, refinance and withdrawal options remain available.

Newrez SmartVest: a dynamic investor mortgage

Scott owns a few rental properties in Phoenix, Arizona, and a company that creates investment software. His business has grown exponentially in recent years – he wants to give up his expensive landlord/tenant lease in an office building and buy a property closer to the suburbs where he and his employees live. The problem is that with the growth his business is experiencing, he doesn’t have a huge reserve of cash usually needed to buy an investment/commercial property – he needs that money for marketing and hiring new development employees.

Is this possible or has Scott programmed himself into a corner?

While in some circumstances Scott would not be considered a non-QM (unqualified mortgage), in this situation he would be. Using a SmartVest loan, non-QM loans (non-qualified mortgages) designed for investors, Scott could use the equity in his current real estate portfolio to purchase the property – additionally, if he finds additional space to rent to another business within the same building, they can use the rental proceeds to pay off their loan – and thus find it easier to qualify for the loan they seek.

Don’t forget the SmartVest benefits:

  • Allows the purchase of additional inventory from the investment portfolio.
  • Provides access to equity in a current portfolio of homes to purchase more investment properties.
  • Can use current portfolio equity to upgrade or remodel existing portfolio properties.
  • The market rent (cash flow) of the subject property can be used to qualify.

Smart L Seriesoans Make Sense: Non-QM Myth Debunked

It’s important to understand that non-MQs ​​are becoming an increasingly attractive mortgage choice for a variety of borrowers – and for good reason. One of the most common myths about non-QMs is that they are high-risk loans designed for high-risk subprime borrowers. This is not the case. Non-QM market share is growing not because there has been an increase in high-risk borrowers entering the mortgage market, but because we are responding to demand for tailored financing solutions designed for buyers with unique finances in mind.

Convinced? From there, it’s up to us, as mortgage professionals, to serve more borrowers with home loans that meet their needs and continue to pave the way for them to achieve their life dreams. home ownership.

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Ofgem to announce measures to protect energy customers’ money | Energy industry https://howtooccupy.org/ofgem-to-announce-measures-to-protect-energy-customers-money-energy-industry/ Sun, 19 Jun 2022 23:01:00 +0000 https://howtooccupy.org/ofgem-to-announce-measures-to-protect-energy-customers-money-energy-industry/ New measures to better protect customers’ money and prevent energy providers from using some of their money “like an interest-free company credit card” are to be announced by the industry regulator on Monday. Ofgem said its ‘tough’ package of measures aimed to reduce the risk of bankruptcy for more energy suppliers and would also include […]]]>

New measures to better protect customers’ money and prevent energy providers from using some of their money “like an interest-free company credit card” are to be announced by the industry regulator on Monday.

Ofgem said its ‘tough’ package of measures aimed to reduce the risk of bankruptcy for more energy suppliers and would also include changes aimed at preventing companies from increasing direct debit payments from customers more than necessary.

The reshuffle aims to ensure providers “can weather the ongoing storm” and prevent a repeat of last year’s failures “which are causing unfair and unnecessary costs and worries for consumers”.

More than 30 energy suppliers have gone bankrupt since the start of last year as a sharp rise in wholesale energy costs led to widespread losses.

In April, Ofgem’s energy price cap rose by 54% – or nearly £700 – to £1,971 a year, and last month the regulator said it was to rise again , £800 or more, reaching around £2,800 in October. This, in turn, should help lift inflation above 11% later this year.

Ofgem said the measures were designed to improve the financial health of suppliers so they can withstand any future shocks, particularly over the autumn and winter. He added that if some still failed, customer credit balances and green levy payments would now be protected.

“Currently they are being used by some providers as an interest-free corporate credit card,” said Jonathan Brearley, chief executive of Ofgem. “Going forward, all vendors will need to have sufficient working capital to operate, without jeopardizing their customers’ credit balances.”

When a supplier goes bankrupt, customers are transferred to a new energy supplier with their credit balances intact. However, under the existing rules, the new supplier does not receive credit balances from the defaulting supplier’s customers, so the cost of replacing them is spread across all consumer bills.

Sign up for the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk

The regulator has proposed rules that would require providers to place customer funds in a separate account, ensuring that any overpaid credit would be preserved in the event of a meltdown.

Last month, the government said some providers had increased direct debit payments more than necessary.

Ofgem said its proposed changes also included tougher rules on the level of direct debits suppliers can charge customers, “to ensure that credit balances do not become excessive”.

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Buy a house with money https://howtooccupy.org/buy-a-house-with-money/ Fri, 17 Jun 2022 20:15:03 +0000 https://howtooccupy.org/buy-a-house-with-money/ If you’re shopping for a home, especially in a booming market like this, you may hear of people bidding cash to buy properties in your area. There are many benefits to buying a home with cash, including making your offer more attractive to sellers. But obviously, not everyone can afford that kind of large down […]]]>

If you’re shopping for a home, especially in a booming market like this, you may hear of people bidding cash to buy properties in your area. There are many benefits to buying a home with cash, including making your offer more attractive to sellers. But obviously, not everyone can afford that kind of large down payment without the need for financing.

Can you buy a house with money?

Yes, it is possible and perfectly legal to buy a house with money. If someone is selling a property for, say, $250,000 and you have more than that in your bank account, there’s no reason you can’t just write them a check on the spot. .

It is important to note, however, that a cash home purchase does not literally mean a mountain of hundred dollar bills. It simply means that you pay in full, upfront, without financing. While you can buy a house with physical cash, carrying around so many paper bills and dealing with IRS reporting requirements for such cash transactions makes it unrealistic.

Should you buy a house with money?

There are many things that make buying a home with cash appealing, but the most fundamental is peace of mind. If you pay for a house in full, you own it. This means no need for financing from a bank or other lender, no debt and no monthly mortgage bills. You will always have a place to live and there is no risk of missed payments or foreclosures.

Offering to pay cash also makes your offer more attractive to home sellers because they get paid faster, with no chance of a mortgage failing or not being approved. Additionally, eliminating the lender greatly speeds up the closing process.

Advantages and disadvantages of buying a house with cash

There are both advantages and disadvantages to paying cash versus getting a mortgage.

Reasons to buy a house with cash

  • No Monthly Payment: Paying off your home in full means you don’t have to worry about rising interest rates or monthly mortgage bills.
  • Reduced Closing Costs and Faster Closing: There are many closing costs and delays associated with getting a mortgage. Skipping the loan process speeds up closing and eliminates costs such as origination fees.
  • More attractive to sellers in a competitive market: With an offer contingent on financing or the appraisal price, there is always a risk that a loan will fail, leaving sellers to find a new buyer. This makes cash offers more attractive, giving your offer an edge over others.
  • Lower purchase price: Since cash transactions are more attractive than those involving financing, you may be able to win a home with a lower offer.
  • No underwriting: If you have poor credit or irregular income, you may not be able to qualify for a mortgage in the first place. Cash offers take the guesswork out of whether you will be able to get a loan.

Reasons to get a mortgage instead

  • Money is tied up in the house: If you put all your money in your house, it is no longer liquid. This means that you will have less money available if you need it for other purposes. If you want quick access to your money, you better finance.
  • Lower return on investment: Real estate can be a good investment. But money tied up in real estate can also be invested in higher yielding investments to earn you more. For example, you might miss higher returns in the stock market if you put all your money in a house.
  • No Mortgage Interest Deduction: Homeowners can deduct some of the interest they pay on their mortgage from their income when they file their tax return. If you don’t have a mortgage, you’re missing out on those savings.

Do I still need to have my home inspected?

A cash transaction means you skip the mortgage process. That doesn’t mean you should skip all the due diligence involved in buying a home. Yes, even if you are paying for a home with cash, it is a good idea to have your home inspected. And even if you waive the inspection, you should never skip the final visit. Your real estate agent can help you set up both.

Deferring funding is another option

For the benefits of making a cash offer without having to tie up all your cash in your home, deferred financing could be an attractive choice.

In effect, you pay cash for a property and then get a mortgage after you complete the purchase. It’s like doing a cash refinance after you buy the house. You turn part of the equity into cash that you can use for other purposes and make monthly payments on the balance.

You still need to have enough money up front to pay for the house, which is a downside. However, this strategy allows you to keep your offer attractive while avoiding tying up all your financial resources in an illiquid asset.

FAQs

At the end of the line

Buying a home with cash can speed up the closing process and make your offer more attractive to sellers, which is a big plus in the hot sellers’ market. However, keep in mind that you are tying up your money in an illiquid asset, so this is not always a good idea.

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iOS 16’s New Apple Pay Option Lets iPhone Users Buy Now and Pay Later: How It Works https://howtooccupy.org/ios-16s-new-apple-pay-option-lets-iphone-users-buy-now-and-pay-later-how-it-works/ Tue, 14 Jun 2022 01:55:02 +0000 https://howtooccupy.org/ios-16s-new-apple-pay-option-lets-iphone-users-buy-now-and-pay-later-how-it-works/ This story is part WWDC 2022CNET’s full coverage from and about Apple’s annual developer conference. What is happening Apple has announced a new free funding feature in Apple Wallet that lets you pay for your purchases for free over time. why is it important As inflation continues to impact households, “buy now, pay later” services […]]]>

This story is part WWDC 2022CNET’s full coverage from and about Apple’s annual developer conference.

What is happening

Apple has announced a new free funding feature in Apple Wallet that lets you pay for your purchases for free over time.

why is it important

As inflation continues to impact households, “buy now, pay later” services have become a popular payment option, and Apple’s entry will likely become a major player.

And after

Apple Pay Later will launch with the release of iOS 16, scheduled for September 2022.

The upcoming release of iOS 16 for iPhone will make Apple one of the biggest players in the market “Buy now, pay later” space. BNPL services allow you to spread the cost of your purchases over multiple payments made over a relatively short period of time, usually without charge or interest. Apple announced the launch of its own service, Apple Pay Later, last week. Worldwide Developers Conference

Apple Pay is part of Apple Wallet, the iPhone’s digital wallet app that also provides Apple Card and Apple Cash. Apple Pay lets you store debit and credit cards and make purchases online or at businesses; Apple Card is a credit account issued by MasterCard and Goldman Sachs that works like a standard digital credit card; and Apple Cash enables peer-to-peer payments.

Apple’s foray into free funding with Apple Pay Later comes at a time when many retailers are accepting payments from BNPL apps such as Affirm, Klarna and Afterpay. Most of these apps offer similar short-term interest-free payment plans, while others also offer longer installment plans with variable interest rates.

We’ll share everything there is to know about Apple Pay later in this article, including how it will work, where it will be accepted, and when it will be available. Apple unveiled Pay Later and iOS 16 alongside new versions of his MacBook and iPad. Here is everything Apple announced at WWDC.

How does Apple Pay Later work?

Apple Pay Later lets you split the cost of purchases into four equal payments spread over six weeks. The first payment is due when you make your purchase, and the remaining payments are due every two weeks thereafter.

Once Apple Pay Later is released, you’ll have two options when completing a purchase: Pay in Full and Pay Later. Selecting the latter option will bring up a payment schedule showing the amount of each of the four payments and the date they are due.

According to Corey Fugman, Senior Director of Wallet and Apple Pay, who spoke about Wallet during the WWDC keynote, Apple Pay Later will be available “wherever Apple Pay is accepted, in apps or online,” indicating that the service may not be available for purchases made in physical stores.

Stores and merchants won’t have to implement changes to accept payments through Apple Pay Later. Transactions will occur as before – the only difference will be how back-end payments are made.

MasterCard Installments, the credit card company‘s white-label BNPL service, will provide merchant payments for Apple Pay Later. Apple and banking partner Goldman Sachs launched plans for Apple Pay Later in July last year, according to Bloomberg.

When can I use Apple Pay Later on my iPhone?

Apple Pay Later will be included with iOS 16, Apple’s next scheduled operating system update for iPhone. The iOS 16 beta is already available for developers who have an account. In the WWDC keynote, Apple said the first public beta of iOS 16 will be released in July.

Apple has traditionally released its latest operating systems to the public alongside its latest phones, as it did with iPhone 13 and iOS 15 in September last year. iPhone 14 is expected to be released in September this year, and iOS 16 is likely to be released around the same time as well.

How is Apple Pay Later different from Apple Card monthly payments?

Apple Card Monthly Payments is an Apple program that allows you to finance the purchase of certain Apple products while using the Apple Card credit card. The length of the 0% APR period for these purchases depends on the product. Installment plans range from six months to two years.

Apple Pay Later is not limited to Apple products nor does it require the use of Apple Card. With Apple Pay Later, you’ll be able to fund purchases using a debit card, Apple said, as long as it’s connected to Apple Wallet. Additionally, the interest-free installment period for Apple Pay Later – six weeks – is much shorter than the payment plans offered by Apple Card monthly installments.

What else is new in Apple Wallet for iPhone?

Another new Apple Wallet feature announced at WWDC is Apple Pay order tracking, which allows merchants to provide customers with detailed receipts and delivery statuses for products purchased through Apple Wallet.

Apple also announced expanded support in Apple Wallet for driver’s license and identity cards. Next Colorado and Arizona IDsApple Wallet plans to add support for 11 more states in the near future.

These driving licenses can be used at certain Transport Security Agency checkpoints. They can also be shared with other apps that require identification, such as alcohol purchases through Uber Eats.

Apple Wallet is also adding key sharing support for locations like hotels, offices, or automobiles. New features will allow users to share keys with friends or associates using email, text messaging or other messaging apps.

Like Apple Pay Later, Apple Pay order tracking, driver’s license and key sharing features will be made available to the public with the full release of iOS 16, due September 2022.

What other online services allow you to buy now and pay later?

Some existing online payment systems offer short-term “buy now, pay later” financing similar to what Apple Pay Later offers. PayPal’s Pay in 4 program works very much like Apple Pay Later, except purchases are limited between $300 and $1,500.

The BNPL Sezzle app also uses a six-week, four-payment system, but allows users to defer one payment up to two weeks later at no cost and to defer other payments for an additional fee.

Other BNPL apps such as Affirm and Klarna offer interest-free installment plans for short periods or longer installment plans that add a variable interest rate.

For more WWDC coverage, read more about the macOS Ventura coming soonNew fitness and workout features for the Apple Watch and all the new features announced for Apple Maps.

Editorial content on this page is based solely on objective, independent assessments by our editors and is not influenced by advertising or partnerships. It was not supplied or commissioned by a third party. However, we may receive compensation when you click on links to products or services offered by our partners.

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How to protect your money from inflation, rising rates and falling stock prices https://howtooccupy.org/how-to-protect-your-money-from-inflation-rising-rates-and-falling-stock-prices/ Sun, 12 Jun 2022 14:55:00 +0000 https://howtooccupy.org/how-to-protect-your-money-from-inflation-rising-rates-and-falling-stock-prices/ This is an updated version of a story that previously aired on April 28. Anyone expecting inflation to peak had a nasty surprise this week. The latest inflation report showed prices in May rose 8.6% from a year ago – the fastest rate in 40 years. Add to that falling stocks, rising interest rates and […]]]>

This is an updated version of a story that previously aired on April 28.

Anyone expecting inflation to peak had a nasty surprise this week. The latest inflation report showed prices in May rose 8.6% from a year ago – the fastest rate in 40 years.

Add to that falling stocks, rising interest rates and global economic turmoil caused by Russia’s invasion of Ukraine, and it’s understandable that people don’t feel good about the economy, despite a still strong labor market.

So if you’re looking for ways to protect yourself financially, while making the most of what you have, here are some options to consider.

With an extremely low unemployment rate and many job vacancies, it’s still a job seekers market right now. But if there is a recession, that could change quickly. So make hay while you can.

“If you’re not working or looking for a better position, now would be a good time to take advantage of the very strong job market and lock in a position,” said Mari Adam, a Florida-based certified financial planner.

To help you in your search, here are some resume do’s and don’ts.

If you’ve been hesitating to sell your home, now might be the time. to take the leap.

The housing market is booming, with year-over-year home prices up nearly 15% in April and rents up nearly 17%.

Meanwhile, mortgage rates are now about 2 percentage points higher than they were at the start of this year, making buying a home much more expensive and can dampen demand. “I would suggest anyone thinking of putting their home on the market to do so immediately,” Adam said.

If you’re about to buy a home or refinance one, get the lowest fixed rate available to you as soon as possible.

That said, “don’t make a big purchase that isn’t right for you just because interest rates might go up. Rushing into buying an expensive item, like a house or a car, that doesn’t fit into your budget is a source of trouble, regardless of how interest rates move in the future,” he said. said Lacy, a Texas-based Certified Financial Planner. Rogers.

If you already have an adjustable rate home equity line of credit and used part of it to complete a home improvement project, ask your lender if they would be willing to fix the rate on your outstanding balance, creating a home fixed-rate equity loan, suggested Greg McBride, chief financial analyst at Bankrate.com.

If that’s not possible, consider paying off that balance by taking out a HELOC from another lender at a lower promotional rate, McBride said.

Having liquid assets to cover you in case of an emergency or a severe market downturn is always a good idea. But it’s especially crucial when dealing with big events beyond your control – including layoffs, which typically increase during recessions.

This means having enough money set aside in cash, money market funds, or short-term fixed-income instruments to cover several months of living expenses, emergencies, or any large anticipated expenses (e.g., down payment). or tuition).

This is also advisable if you are near or retired. In that case, you might want to set aside a year or more of living expenses than you would normally pay with withdrawals from your wallet, said Rob Williams, managing director of financial planning, retirement income and wealth management at Charles Schwab. This should be the amount you would need to supplement your fixed income payments, such as Social Security or a private pension.

Additionally, Williams suggests having two to four years in low-volatility investments like a short-term bond fund. This will help you ride out market downturns and give your investments time to recover.

If you have balances on your credit cards — which typically have high variable interest rates — consider transferring them to a zero-rate balance transfer card that locks in a zero rate for 12 to 21 months, McBride suggested. .

“It insulates you from rate hikes over the next year and a half, and it gives you a clear track to pay off your debt once and for all,” he said. “Less debt and more savings will make you more resilient to rising interest rates, which is especially helpful if the economy deteriorates.”

If you’re not transferring to a zero-rate balance card, another option might be to get a relatively low fixed-rate personal loan.

In any case, the best advice is to do everything possible to pay off your balances quickly.

It’s easy to tell you have a high tolerance for risk when stocks are skyrocketing. But you have to be able to handle the volatility that inevitably accompanies investing over time.

So review your holdings to make sure they still match your risk tolerance for a potentially tougher road.

And while you’re at it, rebalance your portfolio if, after years of stock market gains, you find yourself overweight in a particular area. For example, if you’re now too heavily weighted in growth stocks, Adam suggested maybe reallocating some money into slower-growing, dividend-paying value stocks through a mutual fund. .

Also check that you have at least some bond exposure. While inflation drove the worst quarterly return for high-quality bonds in 40 years, don’t count them.

“If a recession were to result from the Fed aggressively raising interest rates to curb inflation, bonds should do well. Recessions tend to be much more favorable to high-quality bonds than equities,” Bennyhoff said.

If you keep money in a savings account or CD, the interest you earn is likely exceeded by inflation. So, while you preserve your capital, you lose purchasing power over time.

Again, if preserving capital over a year or two is more important than risking losing some of it – which could happen when investing in stocks – that inflation-based loss may be worth it. pain for you because you get what Bennyhoff calls an “easy return to sleep”.

But for longer-term goals, consider how comfortable you feel about taking some risk to get a better return and prevent inflation from eating away at your savings and earnings.

“Over time, you are better off and more secure as a person if you can grow your wealth,” Adam said.

High-speed reports of rising gas and food prices or talk of a possible world war are disconcerting. But don’t trade on the news. Building financial security over time requires a cold, steady hand.

“Don’t let your feelings about the economy or the markets sabotage your long-term growth. Stay invested, stay disciplined. History shows that what people – or even experts – think about the market is usually wrong. The best way to achieve your long-term goals is to simply stay invested and stick to your allocation,” Adam said.

During the crisis periods of the last century, stocks generally rebounded faster than expected at the time and performed well on average over time.

For example, since the financial crisis hit in 2008, the S&P 500 has returned 11% per year on average through 2021, according to data analyzed by First Trust Advisors. The worst year in this period was 2008, when stocks fell 38%. But in most of the years that followed, the index posted a gain. And four of his annual earnings ranged between 23% and 30%.

“If you’ve built a well-diversified portfolio that matches your time horizon and risk tolerance, it’s likely that the recent market drop will just be a drag on your long-term investment plan. “Williams said.

Also remember that it is impossible to make perfect choices since no one has perfect information.

“Gather your facts. Try to make the best decision based on these facts, your individual goals and your risk tolerance. said Adam. Then, she added, “Let go.”

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CFPB: The use of complex algorithms is not a legal defense against discrimination – Consumer Law https://howtooccupy.org/cfpb-the-use-of-complex-algorithms-is-not-a-legal-defense-against-discrimination-consumer-law/ Fri, 10 Jun 2022 16:40:58 +0000 https://howtooccupy.org/cfpb-the-use-of-complex-algorithms-is-not-a-legal-defense-against-discrimination-consumer-law/ Brownstein Hyatt Farber Schreck, LLP June 10, 2022 Brownstein Hyatt Farber Schreck, LLP To print this article, all you need to do is be registered or log in to Mondaq.com. The Consumer Financial Protection Bureau recently warned businesses that under federal anti-discrimination laws they still owe consumers an explanation […]]]>



To print this article, all you need to do is be registered or log in to Mondaq.com.

The Consumer Financial Protection Bureau recently warned businesses that under federal anti-discrimination laws they still owe consumers an explanation of specific reasons for denying credit applications, even if they use complex algorithms to determine creditworthiness. The move is a reminder of both the agency’s continued focus on anti-discrimination enforcement as well as the enduring responsibility of companies using new technologies in consumer interactions.

On May 26, the agency issued a circular confirming its position that adverse creditor action notification requirements under the Equal Credit Opportunity Act apply when using artificial intelligence or other algorithm-based credit models, though the company says it doesn’t fully understand how the technology it uses to make those decisions works. Beyond denied credit applications, adverse actions may include closing or changing the terms of an existing credit account or denying a request to increase credit limits.

“Companies are not exempt from their legal responsibilities when they let a black box model make lending decisions,” CFPB Director Rohit Chopra said in a press release.

“The law gives every applicant the right to an accurate explanation if their credit application has been denied, and that right is not diminished simply because a company uses a complex algorithm that it does not understand.”

The circular comes after the CFPB announced in mid-March that it would prioritize targeting unfair discrimination even if fair lending laws do not apply, citing prohibitions against unfair, deceptive and unfair practices. abusive under the Consumer Financial Protection Act (CFPA). In a move signaling closer collaboration with states, including state attorneys general, the CFPB is also empowering states to enforce provisions of the CFPA, recently issuing an interpretative rule clarifying that Section 1042 allows states to apply any provision of the law. The interpretation rule notes that a CFPB action would not preempt a parallel state action. Further evidence of federal-state partnerships is the fact that the CFPB has entered into memorandums of understanding with nearly two dozen state attorneys general, all 50 states, the District of Columbia and Puerto Rico.

Ultimately, creditors and lenders are still liable under federal law if they don’t provide specific reasons for adverse actions, and a lack of understanding of how credit modeling technology works is not not a legal defense to non-compliance. More generally, companies operate in a regulatory environment at the state and federal levels that is increasingly focused on protecting consumers from algorithmic discrimination. Companies would be wise to review their algorithms for disparate treatment and disparate impact.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

POPULAR ARTICLES ON: US Consumer Protection

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When will prices drop and how can you save money? https://howtooccupy.org/when-will-prices-drop-and-how-can-you-save-money/ Wed, 08 Jun 2022 21:22:29 +0000 https://howtooccupy.org/when-will-prices-drop-and-how-can-you-save-money/ Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We earn commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners. It’s no secret that everything from groceries and gas to plane tickets and rent is more […]]]>

Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We earn commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners.

It’s no secret that everything from groceries and gas to plane tickets and rent is more expensive than before, and many Americans are wondering when prices will return to the normal”.

The short answer is that it is largely based on a variety of factors influencing today’s record high inflation – post-pandemic consumer demand, continued supply chain shortages, geopolitical events, the war in Ukraine – and there are different views on how most of these factors will play out.

Here’s what the experts are saying about when prices might stabilize.

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There’s no clear answer on when prices will drop, but it’s not too far off

Determining when prices will fall again involves estimating large-scale contributors, such as when global supply chain issues will be resolved and when Federal Reserve interest rate hikes will occur. slow the economy enough to reduce inflation. For this reason, and because think tanks, research organizations and economists use different reasoning, it is difficult to give a clear answer.

Some, like Alan Blinder, a Princeton economics and public affairs professor and former Fed vice chairman, suggest inflation won’t last for years. “One day, hopefully soon, food and energy prices will stabilize and supply chain issues will dissipate,” Binder wrote in a recent Wall Street Journal op-ed. When that happens, Binder says, “…inflation will fall as quickly and dramatically as it has risen. We’ve seen that before.”

In other words, prices could drop all of a sudden. Blinder also adds that raising interest rates will not be the ultimate solution to reducing inflation.

Investment research firm Morningstar gives a more accurate forecast, saying prices will fall precipitously by next year.

Morningstar looks at the Personal Consumer Expenditure Price Index, also known as the PCE Price Index, which is the Fed’s preferred measure of inflation. You may have heard of the Consumer Price Index (CPI) as a measure of inflation, but the PCE captures a broader scope and better reflects the change in consumer spending habits by taking into account the price increase.

The Fed uses the PCE price index when referring to its 2% inflation target, Preston Caldwell, head of U.S. economics for Morningstar, told Select. For context, the latest data from the PCE price index shows that the year-over-year inflation rate is 6.3% in April 2022.

But in Morningstar’s second-quarter “US Economic Outlook,” researchers predict that 2022 will see the highest rate of inflation, as measured by the PCE price index, at 5.2%, before falling. Caldwell estimates that the inflation rate will average around 1.5% between 2023 and 2025.

“While the consensus has largely given up on the ‘transitional’ history of inflation, we still believe that most sources of today’s high inflation will decline, and even reverse, over the next few years,” Caldwell said. “That includes energy, autos and other durable goods. Concerns about inflation widening to the rest of the economy, notably via high wage growth, seem overblown.”

Consumers can therefore expect this year to be the worst for inflation, with prices expected to fall by 2023, according to the latest research from Morningstar.

How to save money and maximize your spending when prices are high

Although the effects of inflation are mostly unavoidable, there are some areas where you can reduce your spending to lessen its impact on your wallet. For example, meat, poultry, fish and eggs are among the foods whose prices are increasing the most. You can therefore consider implementing a meatless meal one or more days a week, or replacing meat in a dish with cheaper ingredients such as vegetables.

However, there are only a few things you can avoid when shopping. That’s when a rewards credit card can come in handy. This way you earn at least Something in exchange for so much expense.

The Blue Cash Preferred® card from American Express is an excellent choice for offering supermarket rewards. Cardholders earn 6% cash back at US supermarkets on up to $6,000 per year in purchases (then 1%). You’ll also score points at the pump with 3% cash back at US gas stations. Cash back is received in the form of reward dollars that can be redeemed as statement credit, reducing your credit card bill. The card also offers a welcome bonus of $300 statement credit after spending $3,000 on purchases within the first six months of card membership – a significantly longer timeframe than most welcome offers. .

Blue Cash Preferred® Card from American Express

On the secure site of American Express

  • Awards

    6% cash back in US supermarkets on up to $6,000 per year in purchases (1% thereafter), 6% cash back on select US streaming subscriptions, 3% cash back cash at US gas stations, 3% cash back on public transportation including taxis/rideshare, parking, tolls, trains, buses and more and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars which can be redeemed as statement credit.

  • welcome bonus

    Get a $300 credit after spending $3,000 on purchases with your new card in the first 6 months.

  • Annual subscription

    $0 annual introductory fee for the first year, then $95

  • Introduction AVR

    0% for 12 months on purchases from the date of account opening; N/A for balance transfers

  • Regular APR

  • Balance Transfer Fee

  • Foreign transaction fees

  • Credit needed

To minimize your gas expenses, look for apps like GasBuddy that can help you find the cheapest gas prices near you. GasBuddy also has a rewards card that connects to your bank account and offers up to 25 cents off a gallon – it’s not a credit card and won’t affect your credit score.

You can also use a gas rewards credit card like the PenFed Platinum Rewards Visa Signature® Card, which offers the highest rewards rate on gas. Cardholders earn 5X points on gas purchases at the pump and at electric vehicle charging stations. In addition to earning at gas stations, cardholders also get unlimited 3X points for shopping at supermarkets. Keep in mind that PenFed is a credit union, so membership is required to open this credit card. Anyone can join by taking a few more steps: apply, open a savings account with a $5 deposit, and maintain an account balance of $5.

PenFed Platinum Rewards Visa Signature® Card

  • Awards

    5X points on gasoline purchases at the pump and at electric vehicle charging stations, 3X points on supermarket purchases, 1X point on all other purchases

  • welcome bonus

    15,000 points when you spend $1,500 within the first 3 months of account opening

  • Annual subscription

  • Promotion April

    Promotional balance transfer rate of 0% for 12 months on transfers completed by September 30, 2022.*

  • Regular APR

    14.49% to 17.99% variable on purchases; 17.99% non-variable on balance transfers

  • Balance Transfer Fee

  • Foreign transaction fees

  • Credit needed

*After the promotional balance transfer period, the APR of the outstanding balance and any new balance transfers will be 17.99%. A 3% balance transfer fee applies to each transfer. This transaction is subject to credit approval. If you take advantage of this balance transfer, you will be immediately charged interest on all purchases made with your credit card, unless you pay the entire account balance, including balance transfers, in full each month before the payment due date.

For rates and fees for the Blue Cash Preferred® Card from American Express, click here.

Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff alone and have not been reviewed, endorsed or otherwise endorsed by any third party.

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Martin Lewis urges everyone on Universal Credit or Benefits to get a £1,200 savings bonus https://howtooccupy.org/martin-lewis-urges-everyone-on-universal-credit-or-benefits-to-get-a-1200-savings-bonus/ Tue, 07 Jun 2022 08:18:00 +0000 https://howtooccupy.org/martin-lewis-urges-everyone-on-universal-credit-or-benefits-to-get-a-1200-savings-bonus/ ITV PRESENTER Martin Lewis has urged people on Universal Credit to look into the Help To Save scheme for a 50 per cent bonus after two years. The Money Saving Expert founder tweeted about the “unbeatable” scheme which could help people on benefits get some extra cash. 1 Martin Lewis shows you how to make […]]]>

ITV PRESENTER Martin Lewis has urged people on Universal Credit to look into the Help To Save scheme for a 50 per cent bonus after two years.

The Money Saving Expert founder tweeted about the “unbeatable” scheme which could help people on benefits get some extra cash.

1

Martin Lewis shows you how to make extra money if you’re on Universal Credit1 credit

The Savings Assistance Program creates an account for low-paid workers on Universal Credit and helps them save money and get something more out of it.

To apply for this scheme, you must be a UK resident and meet one of the following criteria:

  • Receive Universal Credit and have an employment income of £658.64 or more for the last monthly assessment period
  • Benefit from the work tax credit
  • Right to work tax credit and child tax credit

Every month you can save from £1 to £50, depending on how much you want to invest and it also depends on whether or not you feel like saving during a specific month.

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After two years, you will get a bonus of 50% of the highest amount of savings you have managed to achieve.

So if in years one and two you managed to save £500, you will get a bonus of £250 at the end of your two years.

If you had to withdraw £100, for example, during these two years, you will still receive £250.

This is because the 50% is the highest amount you managed to save over those two years, not the amount you have left at the end.

After that, you decide whether you want to continue saving for another two years or not.

If you keep saving, after another two years you will get another bonus.

But this time, the calculation is different.

The amount you have saved in the first two years, £500, is taken into account.

If you have managed to save up to £800, for example, at the end of the next two years you will not get £400.

You will get 50% of the difference between the two amounts you managed to save.

So they will subtract £800 from £500, which is £300, and you will get a bonus of £150.

The account is easily accessible, so if you need to withdraw money, you can do so.

Bonuses will be paid directly into your main bank account, not the program account.

There are already people who have tried and tested the program and also thanked Martin on Twitter.

One person said: “@MartinSLewis thank you very much for your information regarding ‘account saving help’ from the government. I claimed UC for my wife and I and followed your advice to open an account in June 2020 , £50 each [per month] give us a free bonus of £1,200 next week plus our savings of £2,400, great advice.”

Note that you cannot open a joint account, but only one for yourself.

If you and your partner split the money you both receive, you will both have extra money to share together.

Martin Lewis does not recommend the scheme for those who have very high debts to pay. He suggests that you should erase them first and then check the Help To Save account.

He said: “The big concern with Help to Save was that it would encourage people to save when they would instead have to pay off their debts, including some hugely expensive ones like payday loans.

“Yet they managed to put in place a structure that allows people to have the best of both worlds.

“The fact that you receive the bonus based on the highest amount you’ve saved, rather than the amount you actually have in there, means you can hoard your savings until you have an emergency you need you would otherwise borrow and then use your savings instead of borrowing, but you will still be rewarded for saving in the first place.

“It’s a very smart ploy and one that will work for a lot of people. Of course, if you have extremely expensive debts, rather than saving, it’s better to try to clear them first.”

To apply for a Help To Save account, go to the government website or HM Revenue & Customs (HMRC) app and enter your Government Gateway login details.

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If you are having difficulty with the technology you can also call 0300 322 7093 and HMRC advisers will guide you and help you set up your account.

The program runs until September 2023.

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