In this article, we’ll discuss why it’s important to pay credit card bills on time, when the best time to pay your credit card bill is, and the benefits that can come along with paying off your credit card bill early.

• Why is it Important to Pay Credit Card Bills On Time?
• How Do You Know When to Pay Off Your Credit Card?
• Is It Better to Pay Your Credit Card Before the Due Date?
  • Helps Reduce Your Credit Utilization
  • May Help Increase Your Credit Score
  • Helps Reduce Your Interest Charges
• Get an Avant Credit Card Today
• Explore More Financial Support Resources

Why is it Important to Pay Credit Card Bills On Time?

Paying your credit card bills on time is extremely important for maintaining a good credit score. Late payments can have a negative impact on your credit history and lower your credit score, making it more difficult to get approved for loans or credit cards in the future. In addition to this, late payments could result in late fees, which can add up quickly and could increase your overall debt. If you repeatedly make late payments, your credit card issuer may lower your credit limit and/or could increase your interest rate, which could cause you to pay more in interest charges over time. 

Additionally, some credit card issuers may report late payments to credit bureaus, which could also affect your credit score. Late payments could have a domino effect that can spiral out of control which may have long-term consequences on creditworthiness.

How Do You Know When to Pay Off Your Credit Card?

The first step is to understand your monthly credit card billing cycle. This is the period of time between when your credit card statement is generated and the payment due date for that statement. The minimum payment is the minimum amount you are required to pay by the due date to avoid late fees and keep your account in good standing.

To avoid interest charges, you should aim to pay off your credit card statement balance before the due date. The statement balance is different from the current balance, as the current balance typically reflects the total amount that you owe at any given moment. Generally, you should prioritize paying off your statement balance, which, if paid in full by the due date, will help you to avoid paying interest changes. If you can’t pay the full balance, you can minimize the interest charges by paying as much as possible above the minimum payment. 

A tool that you could leverage to pay off your credit card bill without needing to remember the due date is automatic payments for the full amount.  Most credit card issuers, like Avant, offer this convenient option so you don’t have to worry about forgetting to pay off your credit card bill or making a payment.  If you choose to go the more manual route, you could also consider setting up reminders on your phone or writing them down. 

Is It Better to Pay Your Credit Card Before the Due Date?

Paying off your credit card bill early could be a great way to avoid interest charges and help better manage your debt. It could also help you avoid late fees and may improve your credit score by showing that you are responsible with your credit. And, there are some extra benefits you might see when you pay your bill early.

Helps Reduce Your Credit Utilization

Paying off your credit card bill early could help reduce your credit utilization, which is a key factor that affects your credit score. Credit utilization is the ratio of how much credit you are using to how much credit you have available. The lower your credit utilization, the better it  could be for your credit score. When you pay off your credit card bill early, you reduce the amount of credit you are using, which in turn lowers your credit utilization ratio. This could help improve your credit score and may make it easier for you to get approved for loans and credit cards in the future.

May Help Increase Your Credit Score

Paying your credit card bill early may increase your credit score for a few reasons:

1. Payment History: One of the most important factors that affects your credit score is your payment history. When you pay your credit card bill early, you demonstrate that you are responsible and reliable when it comes to paying your debts. This could help improve your credit score by showing that you are a lower-risk borrower.
2. Credit Utilization: As mentioned earlier, credit utilization is the ratio of how much credit you are using to how much credit you have available. When you pay off your credit card bill early, you reduce the amount of credit you are using, which may help lower your credit utilization ratio and could improve your credit score.
3. Avoiding Late Fees: Late payments could have a negative impact on your credit score. By paying your credit card bill early, you may avoid late fees and the negative impact they could have on your credit score.
4. Showing Financial Responsibility: Paying your credit card bill early shows lenders and credit bureaus that you have the financial discipline to manage your credit and pay your bills on time. This could help establish a positive credit history and increase your credit score.

Helps Reduce Your Interest Charges

Paying your credit card bill early may help reduce interest charges in a few ways:

1. Interest is calculated based on the outstanding balance: Credit card interest is calculated based on the outstanding balance on your card. When you pay off your credit card bill early, you reduce the outstanding balance, which in turn may reduce the amount of interest you will be charged.
2. Avoiding Interest Accumulation: Most credit card issuers charge interest on a daily basis, so the longer you carry a balance, the more interest you may be charged. By paying off your credit card bill early, you can avoid interest accumulation and save money in the long run.
3. Reducing the length of time you pay interest: Interest is also calculated based on the length of time you carry a balance. By paying off your credit card bill early, you reduce the length of time that you pay interest on your card, which may help you save money.
4. Avoiding penalty interest rates: Some credit card issuers may increase your interest rate if you repeatedly make late payments. By paying off your credit card bill early, you may avoid penalty interest rates which could help keep your interest rate low.

Get an Avant Credit Card Today

With an Avant Credit Card, you could get the buying power you want and take steps toward building your credit at the same time with responsible use. Applying is easy and seeing if you qualify will not impact your credit score. Just fill out Avant’s simple application and you’ll get a decision as soon as possible.

Explore More Financial Support Resources

Paying off your credit card bill on time and in full may help you avoid interest charges, maintain a good credit score and save you money in the long run. It’s important to understand your monthly billing cycle, minimum payments, and to set reminders to pay on time or early. To learn more about making Avant Credit Card payments, check out our Help Center, contact our customer support team, or review your credit card statement for more information.

Avant also offers access to additional financial resources through our partnership with SpringFour to help you move financially forward. Learn more about options available to you.

Avant branded credit products are issued by WebBank.

The information provided on this website does not, and is not intended to, constitute legal, financial, or tax advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal, financial, tax or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; Avant does not recommend or endorse the contents of the third-party sites.

222 W Merchandise Mart Plaza, Suite 900, Chicago, IL 60654

Avant branded credit products are issued by WebBank.

Connecticut consumers: all marketing efforts are associated with Avant, LLC, Small Loan Company License #SLC-1246731

Avant of Washington, LLC DBA Avant is a wholly-owned and operated subsidiary of Avant, LLC Nationwide Multistate Licensing System #1440089.

Avant, LLC Nationwide Multistate Licensing System #1243761.

THIS IS A LOAN SOLICITATION ONLY. AVANT, LLC IS NOT THE LENDER. INFORMATION RECEIVED WILL BE SHARED WITH ONE OR MORE THIRD PARTIES IN CONNECTION WITH YOUR LOAN INQUIRY. THE LENDER MAY NOT BE SUBJECT TO ALL VERMONT LENDING LAWS. THE LENDER MAY BE SUBJECT TO FEDERAL LENDING LAWS.

The post When to Pay Off Your Credit Card Bill appeared first on The Avant Blog.

It is important not to panic if you find yourself in this situation. Rather, take a moment to understand how debt collection works, what rights you have, and what options are available to you. Here is what you need to know to move financially forward.

What is Collections?

Debt collections happen when an unpaid debt gets assigned to a debt collector. Debt collectors are often third-party companies or agencies that work on behalf of another company to collect debts. If working for the original creditor, the debt collector will receive a percentage of the debt collected. Otherwise, the debt can be sold to a debt collection agency for pennies on the dollar after you fail to pay back the debt to the original creditor. The agency will then pursue you for the debt.

When Does an Account Go to Collections?

There is no ‘set rule’ on how long it takes for your debt to go to collections. The only thing for certain is that the clock starts ticking on the debt being turned over to a collections agency the moment you don’t pay a bill. It also depends on the type of loan. Generally, credit card debt that remains unpaid longer than 30 days is turned over to a collection agency. Foreclosures or unpaid mortgages can take much longer and are dependent on laws in the state they were issued.

In most cases, lenders will try to collect the debt themselves before resorting to writing it off and passing the collection to another party. The debt is then reported to the credit bureaus as a “charge off,” meaning the original creditor has ceased efforts to recover the debt. After a debt is canceled, the creditor may send you a Form 1099-C, Cancellation of Debt showing the amount of cancellation of debt and the date of cancellation, among other things. Be sure to have this form handy when you are filing your taxes.

How Collections Works: What Happens When You Get Sent to Collections

Debt collection might vary slightly based on the company that’s collecting a debt. However, the process is basically the same. If you have unpaid past-due debt, your original creditor will typically notify you through written notices and phone calls. If you have a credit card that you stopped paying, your lender will make an attempt to contact you to get the amount current. If they are unsuccessful in getting you to pay what you owe, it will eventually stop. That’s usually when the debt transfers to collections.

The debt collection agency will then use the information on file to contact you. They may use your current address, your phone numbers and even contact information for your relatives. Personal banking information, including savings and investment accounts, may also be used to determine if you have the money to repay a debt. Some states allow wage garnishment to collect old debts.

Reputable Debt Collection Agencies vs. Scammers

Be very careful if you are ever contacted by someone who claims to be from a debt collection agency. Some scammers are known to masquerade as debt collectors. Never rush to make payments to any debt collector if you don’t recognize the debt they’re trying to collect. If you suspect you’re being scammed, ask for a company name and contact number. Then check with your original creditor to see if they have assigned the debt to a collection agency.

Reputable debt collection agencies will send letters to the address you gave your creditors. If there’s a way to see that you’ve moved, agencies can send letters to your new address in an attempt to collect a debt. Whether agencies send you letters or call, they’re required to give you specific details about your debt, including:

• The name of the original creditor.
• The amount you owe (including late fees and other charges).
• Your ability to dispute the debt in question, along with any stipulations.

The collector must also inform you that you have 30 days to dispute the debt in writing. They need to tell you the name and address of the original creditor if you request it. If you don’t dispute the debt within 30 days, the agency will consider your debt valid, and they can contact you to collect the amount owed.

Companies that follow the rules will work within the statute of limitations, based on the type of debt you owe and the state you live in. They will contact you only between 8am and 9pm, although you might get many calls in one day.

When collections agencies operate the right way you should not experience any harassment or threats. It is important to know, if a company threatens you with a police arrest, or if they tell you that someone is coming after you, then they are not acting lawfully.

How Does Collections Affect Your Credit Score?

If you have an unpaid debt in collections, your creditor can report it to credit bureaus, which can cause a major blow to your credit score. It is hard to predict exactly how much a credit note will impact a credit score because credit scores are unique and determined using a number of factors. However, a debt in collections is one of the most serious negative items that can appear on credit reports. That’s why working hard to get current before an account enters collections could help your credit recover faster.

How Long Do Collections Stay on Your Credit Report?

Generally, an account in collection will remain on your credit reports for seven years from the first delinquent date. If it hasn’t fallen off your credit report after that time, you can file a dispute with the credit bureau in question and have it removed. However, just because a debt in collections eventually gets removed from your credit score, does not mean you should ignore it or not pay it. You risk adversely impacting your credit score which could lead to being sued by the collector if you don’t pay your debt. Few experts would recommend ignoring your debt in collections. You’re always far better off negotiating a settlement plan if available.

Do Collections Ever Go Away?

Collections don’t usually just go away. However, there is a limited amount of time that debt collectors can sue you to collect on a debt. This is called the “statute of limitations” and it usually starts when you first fail to pay your debt. When the statute of limitations runs out, your unpaid debt becomes “time-barred” and a debt collector can no longer sue you to collect it.

How long does the statute of limitations last? It depends on what kind of debt it is and the law in your state — or the state specified in your credit contract or agreement creating the debt. Some states will also reset the clock and begin a new statute of limitations period if you ever make a payment or acknowledge the debt in writing.

What To Do If a Bill Goes to Collections

Once you are notified that your debt has entered into collections, there are three things you should do to begin getting out of collections:

1. Confirm that the debt is yours. Before you pay anything, debt collection agencies are required by the Fair Debt Collection Practices Act (FDCPA) to send you a debt validation letter. This is an important step because it confirms if the debt belongs to you. The letter will also list how much is owed, the type of debt owed and details about the creditor. If there are any errors, you have 30 days to dispute the debt.
2. Consider your payment options. You’ll typically have two repayment options. Either you will pay off your debt in a lump sum or according to a repayment plan. The option you choose will depend on your budget and the amount of debt owed.
3. Begin making payments. Be sure to ask your debt collector for a written agreement before making a payment. Review the agreement carefully for accuracy and then start making payments. Make sure the collector confirms receipt of your payment and documents every single payment you make for your future records.

Don’t Forget You Have Rights in Debt Collection

A federal law known as the Fair Debt Collection Practices Act gives you rights and protection when it comes to how companies can conduct debt collection. The act protects consumers from “abusive, deceptive and unfair debt collection practices”. It limits debt collection calls before evening hours. It disallows incessant calling or communication via postcard and it prohibits the use of violence or intimidating language from the debt collector.

Remember you have the right to stop the debt collectors from contacting you if you’re being harassed for a debt that doesn’t belong to you. To stop the contact, you need to go through the same steps as if the debt was yours. Ask the collector to verify the debt, and then dispute it in writing. If the collector continues you are entitled to send a cease and desist letter, and then file complaints with the FTC.

What Happens If You Don’t Pay Collections

Ignoring and not paying debt collectors can lead to serious consequences. It is something you shouldn’t do when getting out of debt. The collection process typically becomes more aggressive the more you ignore it. Debt collectors can sue you if you ignore their calls and letters. They may win by default if you ignore the lawsuit. In that case, you may end up paying the debt as well as the collector’s attorney and collection fees. The debt collector can collect on this judgment by garnishing your wages or by placing a lien on any property you own.

Your credit score will also suffer greatly if you do not pay your debts. Unpaid debt can negatively impact your credit score for up to seven years, even if debt collectors stop contacting you. 

The Bottom Line on Debt Collections

Collections are a legal way for creditors and debt collection agencies to collect money that is owed to them. You owe it to companies to pay back your debts. Otherwise, you could face a barrage of calls and letters from debt collectors trying to collect a debt.

But even if you owe money, you still have rights. You are protected against deceptive or abusive behavior. There are actions you can take if someone is harassing you to collect a debt. For example, you can file a complaint with federal agencies or your state attorney.

The information provided on this website does not, and is not intended to, constitute legal, financial, or tax advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal, financial, tax or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; Avant does not recommend or endorse the contents of the third-party sites.

222 W Merchandise Mart Plaza, Suite 900, Chicago, IL 60654

Avant branded credit products are issued by WebBank.

Connecticut consumers: all marketing efforts are associated with Avant, LLC, Small Loan Company License #SLC-1246731

Avant of Washington, LLC DBA Avant is a wholly-owned and operated subsidiary of Avant, LLC Nationwide Multistate Licensing System #1440089.

Avant, LLC Nationwide Multistate Licensing System #1243761.

THIS IS A LOAN SOLICITATION ONLY. AVANT, LLC IS NOT THE LENDER. INFORMATION RECEIVED WILL BE SHARED WITH ONE OR MORE THIRD PARTIES IN CONNECTION WITH YOUR LOAN INQUIRY. THE LENDER MAY NOT BE SUBJECT TO ALL VERMONT LENDING LAWS. THE LENDER MAY BE SUBJECT TO FEDERAL LENDING LAWS.

The post What Happens When Debt Goes to Collections? appeared first on The Avant Blog.

What is a Recession?

As mentioned, a recession is a significant decline in economic activity that lasts for months or even years. A recession is typically declared when a nation’s economy experiences negative gross domestic product (GDP), rising levels of unemployment, falling retail sales, and contracting measures of income and manufacturing for an extended period of time. 

Recessions are considered an unavoidable part of the business cycle. They’re part of the regular cadence and contraction that occur in a nation’s economy. The most common examples of a recession are the global recession of the 2008 financial crisis and the Great Depression of the 1930s. The COVID-19 pandemic caused an economic downturn, which sparked fears of a recession.

What Causes a Recession?

A loss of business and consumer confidence causes recessions. Demand decreases in line with consumer confidence. Recessions occur because the US economy is cyclical. Generally speaking, economic growth continues until it reaches a peak of performance. That’s when the expansion becomes contraction resulting in a recession. Then activity gradually begins to expand again. 

What Happens in a Recession?

A recession can impact you and your family’s daily life in a number of ways. Some common ways people are impacted include:

Cost of living increases

During a recession, household essentials such as groceries, gasoline and clothes are more expensive. Higher prices make it harder to make ends meet. This calls for strict budgets and cuts in discretionary spending.

Job losses

During a recession, companies often reduce their staffing levels to save money. You may risk losing your job or experience a reduction in hours. Competition for the few open roles gets tougher and it can take longer to find a job.

Health consequences

Job losses not only impact an individual’s employment and earnings, but also their health insurance coverage, retirement savings contributions, financial security, and health-related behaviors and outcomes. Those who lose their job are more likely to receive government “safety net” assistance, like disability insurance and supplemental security income benefits, even after the recession has ended.

Student loans

Younger adults may find it difficult finding or keeping a job during a recession. Higher levels of student loan debt can compound these recession-related challenges.  

Opportunities

If you own or work in a business that provides goods and services that people need regardless of the economy, then count yourself lucky. Your business is considered recession proof and you won’t suffer as much during the downturn.

How to Prepare for a Recession

While there’s no way of preventing recessions from happening, there are practical steps you can take to weather the storm and prepare for the future. Here are five ways you can plan during uncertain times. 

Reassess your budget

Become clear about where you stand financially. Make sure you have enough money to pay your bills and cover your essential spending. If your finances are looking tight, search for areas to cut back spending, bills that can be eliminated or loans refinanced.

Increase your savings

Put as much money as you can into your savings.  As a rule of thumb, you should have three months’ worth of bills or $3,000 saved for an emergency, whichever is greater. A recession is a good time to get more aggressive and save for six months’ worth of bills or $6,000, whichever is greater. Keep your savings accessible and not invested to avoid the potential of loss from market fluctuations.

Pay off current debt

If you lose income during a recession you may not be able to pay every bill on time or in full every month. And that will have a direct impact on your credit scores. Therefore, you should prioritize how you pay your bills, so your available cash covers as many debts as you’re able. For example, pay your rent or mortgage on time to avoid eviction or foreclosure. Make your car payment on time too – especially if you need your car to get to work. Then focus on paying off your other debts like credit cards and student loans.

Continue with your contributions

Remember that investing is a long game where you benefit most by sticking it out over the bumps. It is important to continue contributing to your retirement fund and other important investments during a recession. Don’t give up just because the current environment looks bleak.

Consider alternate ways to make money

If you’re struggling to make ends meet or are worried about being laid off during a recession, it may be beneficial to pick up a side gig such as freelancing or working for a rideshare application. Having an extra stream of income can not only help in the event of a layoff but can make it easier to build your emergency savings while you’re still employed.

What Not to Do During a Recession

During a recession, it is important that you prepare for emergencies and do not put your finances at risk. Here are some things you do not want to do during an economic downturn.

Panic

Whatever you do, don’t panic. If your anxiety is triggered by sudden changes, see if there’s an upswing shortly after, or talk with a financial advisor.

Increase your debt

While it may be tempting to take on more debt during a recession when the interest rate on loans is typically lower, it is better to focus on paying off any debt you already have.

Become a cosigner

As a cosigner you risk taking on more debt. If the primary debt holder isn’t able to make a payment, you will be held responsible. Stay away from cosigning.

Take your job for granted

Always showcase your skills, regardless of whether you want to stay at your job a while or not. Highlight these skills during a recession and put off quitting until you have another opportunity lined up.

Not build an emergency fund

Build up your emergency fund so you can cover at least three to six months of your expenses.

Explore More Recession Resources

When times are tough, practicing these healthy financial strategies can help you stay afloat. They can show you how to stop living paycheck to paycheck, and give you a good idea of what to do if your expenses exceed your income. Start implementing healthy budgeting habits to prepare for any financial opportunities or emergencies.

Need financial advice or counseling? Looking to spend less on food? Out of work or underemployed? Find ways to save with SpringFour.

Recession FAQs

Can a recession be a good thing?

Even if it stings in the process, a recession can have a good impact on you and the economy as a whole. Some businesses, like maintenance services and grocery stores thrive during recessions. Inefficient companies must jettison excess inventory and cut their overheads during downturns, which improves efficiency overall. Recessions also balance everyday costs by resetting prices to manageable levels. 

What is an example of a recession?

The most common examples of a recession are the global recession of the 2008 financial crisis and the Great Depression of the 1930s. The Gulf War Recession (July 1990 to March 1991) was partly caused by spiking oil prices during the First Gulf War.

What does a recession do to the average person?

During a recession, people may need to adjust their budgets to survive on less take-home pay. They may also have trouble finding new employment or second jobs because companies are hiring less people. Those fortunate enough to find new work often end up in jobs for which they are overqualified and underpaid. However, there are resources available to help you navigate through the impacts of a recession.

What happens to your money in the bank during a recession?

One of the safest places to keep your money during a recession is in an FDIC-insured bank account. You are likely already protected if you have checking and savings accounts with a traditional or online bank. If you’re unsure whether your accounts are FDIC-insured, you can check with your institution or look it up on the FDIC’s BankFind database.

Who benefits in a recession?

Industries that are considered relatively inelastic such as healthcare, food, consumer staples and basic transportation can all perform well in a recession. Rental agents, landlords, and property management companies can thrive during a recession due to the fact that renting is likely to become a more appealing option, if not the only one available.

Do prices rise or fall in a recession?

As the recession weakens the demand for things like cars, you may see a fall in prices accordingly. Stock prices typically plummet during a recession. The flight to safety can cause some investors to pull their money out of the stock market entirely.

The information provided on this website does not, and is not intended to, constitute legal, financial, or tax advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal, financial, tax or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; Avant does not recommend or endorse the contents of the third-party sites.

222 W Merchandise Mart Plaza, Suite 900, Chicago, IL 60654

Avant branded credit products are issued by WebBank.

Connecticut consumers: all marketing efforts are associated with Avant, LLC, Small Loan Company License #SLC-1246731

Avant of Washington, LLC DBA Avant is a wholly-owned and operated subsidiary of Avant, LLC Nationwide Multistate Licensing System #1440089.

Avant, LLC Nationwide Multistate Licensing System #1243761.

THIS IS A LOAN SOLICITATION ONLY. AVANT, LLC IS NOT THE LENDER. INFORMATION RECEIVED WILL BE SHARED WITH ONE OR MORE THIRD PARTIES IN CONNECTION WITH YOUR LOAN INQUIRY. THE LENDER MAY NOT BE SUBJECT TO ALL VERMONT LENDING LAWS. THE LENDER MAY BE SUBJECT TO FEDERAL LENDING LAWS.

The post 5 Ways to Prepare for a Recession appeared first on The Avant Blog.

An emergency fund is an easily accessible pool of money set aside in case of an urgent or unforeseen financial situation. Financial ups and downs occur naturally, so it pays to be prepared for the unexpected with an emergency fund. Your emergency fund should not be considered a nest egg or calculated as part of a long-term savings plan for college tuition, a new car, or a vacation. Instead, treat this fund as a safety net, only to be tapped when an emergency occurs.

How Much Should You Have in an Emergency Fund?

A number of different factors will determine the size of your emergency fund. These include your lifestyle, monthly costs, income and dependents. However, the general rule of thumb is that you should have enough saved to cover at least three to six months’ worth of expenses. If that seems like a daunting goal to you, then perhaps try putting away a small amount each week or two until you achieve it. Your family needs, bill obligations, job stability and other factors will also come into play when determining how much money you should save.

Where to Keep Your Emergency Savings

Just as emergencies can happen without warning, you need to be able to access your emergency savings quickly and without cost. For that reason, emergency savings may be best placed in an interest-bearing bank account like money market or interest-bearing savings accounts, which can be accessed easily without taxes or penalties. You could risk losing too much money if you need to withdraw money quickly from mutual funds, stocks or other assets, which may lose value as a result. You could also incur early-withdrawal penalties if you ever needed quick access to emergency savings kept in an account such as a certificate of deposit (CD) or Individual Retirement Account (IRA).

When Should I Use an Emergency Fund?

Your emergency fund should be reserved exclusively for financial emergencies. Any event that causes an unforeseen expense, like a car repair or a medical bill, qualifies as a financial emergency. Be sure to use your emergency fund only when you need it. Then always make sure to continue replenishing your emergency savings once things improve.

Avant branded products are issued by WebBank. 

The information provided on this website does not, and is not intended to, constitute legal, financial, or tax advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal, financial, tax or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; Avant does not recommend or endorse the contents of the third-party sites.

The post How Much Money Should Be In My Emergency Fund? appeared first on The Avant Blog.

Creditors consider several factors to figure out how big of a risk they would be taking by lending you money. The creditworthiness standards and definition may vary slightly between lenders. Some consider your income, how much you owe (liabilities), and how much you own (assets) when determining how likely you are to pay back the money you borrow. 

Creditworthiness should be a goal for your future because the most creditworthy individuals are typically offered the best interest rates.

What is Your Creditworthiness Based On?

Creditworthiness factors are based on a review of your credit history and a determination of your ability to make repayments. A creditor wants to see that you have a track record of repaying your debt with on-time installments, including any past loans and credit card debt, before lending you money or extending your credit. 

The steps to determining your creditworthiness include:

Reviewing Your Credit Report

Your credit report will show your credit history and how well you manage credit. A lender will look to see how much debt you owe, credit limits, and whether you have made late payments or if any payments are overdue to determine how likely it is that you will repay any money they lend you.

Calculating Your Debt-to-Income Ratio

Your ability to pay back a loan is partly determined by your income. By comparing your monthly debt payments to your monthly income, a creditor can figure out how much you can afford each month in installment payments. A debt-to-income ratio of 35% or less usually indicates good creditworthiness. 

Checking Your Credit Score

Your credit score helps determine your creditworthiness and affects the interest rate you will be charged. A lower credit score indicates that you may be a higher risk for borrowing money and typically means you will be offered higher interest rates. When you have a low credit score, you may pay more to borrow money because the lender is taking a bigger chance that they won’t get their money back. A credit score of 670 to 739 or so usually indicates good creditworthiness.

Verifying Your Income

To be considered for a loan or credit, you are usually required to show proof of income. A copy of your tax return from the previous year or a paystub from your employer documents the amount of your income and helps creditors understand if you have a reliable source of income to help repay the credit.

How to Improve Your Creditworthiness

Improving your creditworthiness is an important goal for your future. It can affect a number of aspects of life, from getting an apartment lease or being approved for a mortgage, to qualifying for a car loan. Knowing how lenders define creditworthiness, you can see that paying your credit card bills on time is one of the most important steps you can take to develop creditworthiness. Other steps include:

Make credit card payments on time

Making on-time payments and avoiding late or overdue payments is one way to steadily increase your creditworthiness.

Clear up past-due debt

Pay your outstanding balances. If you can’t get current on your account, ask for a payment arrangement to get your past-due balance paid off.

Pay more than minimum

Paying more than the minimum amount due each month will get your debt paid off faster and save money on late fees and interest charges.

Check your debt-to-income ratio (DTI)

It’s easy to know your DTI score. Divide your total monthly debt by your monthly gross income. A DTI under 35% is acceptable to most lenders, although 28% is ideal. Reducing your debt and increasing your income can improve your DTI.

Pay credit card balances in full

Start building a solid payment history by paying your whole credit card bill each month. You may have to adjust your credit card spending to fit within your monthly budget.

Grow your credit

Apply for another credit card from a different bank or ask to have the credit limit on your existing credit card raised. When you have more credit available to you, your creditworthiness can improve.

Learn More About the Avant Credit Card

Improve your creditworthiness with the Avant credit card. Transparent and easy-to-use with zero fraud liability for unauthorized purchases and zero deposit required, the Avant credit card is a responsible choice for building strong credit. Checking your eligibility online does not affect your credit score; responsible use of the Avant credit card can help improve your credit score by establishing a track record of on-time payments.

The information provided on this website does not, and is not intended to, constitute legal, financial, or tax advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal, financial, tax or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; Avant does not recommend or endorse the contents of the third-party sites.

Avant branded credit products are issued by WebBank.

The post What is Creditworthiness? appeared first on The Avant Blog.

If your debt is weighing you down, it’s time to break free of it. While you can’t just make it disappear, you can use strategies like debt consolidation and a targeted repayment approach to ease the load, helping you pay it off faster. Here’s what you should know about debt payoff strategies to help you breathe easy and feel more confident about your financial future.

Are you looking for a shortcut to pay off your debt sooner? The best way to build momentum in your debt repayment efforts is to follow a debt payoff strategy or submit larger monthly payments. Keep reading to learn tips on both of these so that you can pay off your debt as fast as possible.

Remember, the sooner you amp up your debt repayment process, the quicker you will experience financial freedom.

Pick a Debt Payoff Strategy

Knowing how to pay off debt fast doesn’t have to remain a mystery. There are four primary methods for paying off credit card and other debts quickly: the debt snowball method, the debt avalanche method, a debt consolidation loan, and a balance transfer credit card. All methods have their own benefits, and the one that’s right for you will depend on your situation.

 1. Debt Snowball Method

This way to pay off debt focuses on paying off the account with the lowest balance first. You’ll continue to make minimum payments on your other accounts, but you’ll put as much as possible toward the account with the lowest balance until it’s paid off. When that one reaches $0, do the same for the next account with the lowest balance.

For instance, say you have credit cards with balances of $400, $1,000, and $1,400. Plan to make the minimum payments for the $1,000 and $1,400 cards, but pay as much as you can on the $400 balance each month. When that balance gets to $0, start paying down the $1,000 balance while continuing to make minimum payments on the $1,400 balance.

Pros
With the snowball approach, you’ll pay off debt fast, one account at a time. It’s not quite instant gratification, but it’s close enough to keep you motivated and provide a sense of accomplishment. Plus, you’ll steadily reduce the number of outstanding balances you have, which can ease your stress.

Cons
The snowball method may be the best way to pay off debts with similar or low interest rates, but it doesn’t account for debts with high interest rates. If your highest account balances have the highest interest rates, you may want to choose a different method of paying off your debt to avoid paying more in interest.

2. Debt Avalanche Method

This method focuses on accounts with the highest interest rates, minimizing the amount you pay over time. To use the debt avalanche method, look at the statements for each credit card and loan you have open, and note the Annual Percentage Rate (“APR”). The card or loan with the highest APR is the one you should start paying down first, then move on to the next.

In this case, imagine you have three lines of credit with APRs of 15.99%, 18%, and 21.99%. With this method, you would focus on paying down the account with the 21.99% APR, regardless of each account’s balance. You’d then pay down the line of credit with 18% APR, leaving the 15.99% APR account for last.

Pros

The debt avalanche approach saves you money by reducing the amount of interest you pay on your debts. For accounts with high interest rates, this could save you hundreds of dollars over time.

Cons
Accounts with high balances will take a while to pay down. If the account with the highest interest rate also has a high balance, you could make payments for a year or more before it’s paid off, which can be frustrating or disheartening. If you think slow progress will be discouraging, consider other ways to pay off your debt.

3. Debt Consolidation Loan

A debt consolidation loan can simplify your life and your finances, and it can save you money. With this approach, you take out a personal loan equal to the balances of the credit cards and loans you have and use it to pay off your debts. This leaves you with one monthly payment instead of several, and if you find a personal loan with a low interest rate, you’ll pay less over time.

For example, say you have four credit cards or open accounts, with balances of $500, $700, $800, and $1,000. The highest APR on these is 21.99%. For debt consolidation, you would want to take out a $3,000 loan (enough to cover your existing debt) with an APR of 20% or below for the best savings. From that point forward, you’d only need to make one monthly payment, and you’ll pay less interest.

Pros

Consolidating your debt into one loan means only having one monthly payment, and with a debt consolidation loan through Avant, you’ll have one fixed interest rate. Budgeting will be simpler, and your monthly payment may be lower than the sum of the payments you were making before. Personal loans may also offer lower interest rates than credit cards, so consolidation is especially advantageous if credit cards are your main source of debt.

Cons

If your credit could use some improvement, you may receive a higher interest rate or lower loan amount than you’d like. In these situations, other options for debt consolidation may be a better fit for you.

4. Balance Transfer Credit Card

This is another consolidative way to pay off debt. A balance transfer credit card allows you to transfer balances from other accounts to the new card, paying off those balances and resulting in one new balance and payment. 

Balance transfer credit cards can offer special introductory APRs – even 0% APR for a short time. This could  allow you to pay off part or all of your existing debt with little to no interest, potentially generating significant savings. Once the introductory period is over, though, interest will begin to accrue.  

Pros

There’s nothing like being able to pause the interest accrual on a debt. Some balance transfer credit cards offer 0% APR during the introductory period, which could last for a year or more. Stopping the accrual of interest could help give you a leg up on paying down your balance, and it may motivate you to pay it down faster. 

If you’re able to pay it all off before the introductory period expires, you’ll avoid paying interest at all on the balance you transferred, which can make a world of difference to your finances.

Cons

Balance transfer cards may charge a fee each time you transfer a balance to it, usually 3-5% of the transferred amount (with a $5 or $10 minimum fee). If you’re transferring $3,000 to the card, a 5% fee would be $150, which is added to the card’s balance. 

You’ll also have a credit limit on the balance transfer card. If you have a $2,500 limit but $3,000 of debt, you’d be left with $500 still on the original account, accruing interest. If you still have a balance when the introductory period ends, interest will start accruing. The introductory period can be revoked early if you make a late payment.

Another consideration is how this move could impact your credit score. Credit utilization accounts for 20% or more of your overall score, so if the balance you’re transferring is close to the credit limit on the balance transfer card, your score may take a hit.

Increase Your Monthly Debt Payments

Increase Your Income

Increasing your monthly payments is a reliable way to pay off credit card and loan debt fast. Here, we break down different approaches and tips for paying off credit card debt and loans by increasing your payments.

• Become a virtual assistant on the side – There are many legitimate sites where you can sell your time and skillset. Perhaps you are good at resume writing, you’ve got a knack for transcription, or you like to design blog avatars in your spare time. To get you started earning extra cash, check out similar listings on Upwork.com for ideas as well as price ranges. Then, submit your own!
• Cash out credit card rewards – Is it time to cash out your credit card reward points? See if you can get a statement credit, actual cash, or get a gift card for a purchase you were planning to make anyway so that you can use that money towards debt repayment.
• Pick up extra shifts at work – Sometimes the easiest way to bring in extra cash is to ask for more work (if you are paid hourly… salary workers, you probably don’t want to do this).
• Get a seasonal, part-time job – Do you have time to work at a Christmas tree lot in the winter? Or become a weekend camp counselor in the summer? There are lots of seasonal opportunities that can be a great, temporary infusion of cash to help you reach your goal quicker.
• Ask for a raise – The fact is, increasing your pay can turbo boost your debt repayment, so it’s worth it to ask! Ramit is a great go-to resource for helping you do this knee-wobbling task.
• Host a digital yard sale – Gather up all of those extra belongings you’ve been meaning to get rid of and take an afternoon to list them on eBay, Craigslist, local Facebook groups, etc.
• Dog walk and pet sit – This is a great way to get some exercise and make some extra cash. Post your ad on a community bulletin board, Facebook page, or Craigslist, or just spread the word among dog owners. You’ll be surprised how lucrative this can be, especially in a big city.
• Pick up scrap metal – Do you have a truck? You can pick up people’s old appliances and other scrap metal and actually trade it in at your local center for some cold, hard cash. Money earned is based on metal type and weight.

Save Money

There are a variety of areas to potentially save money so that you can put more towards paying off your debts.

• Negotiate a lower interest rate – Call up your credit card company, medical creditors, and others to ask for a lower interest rate.

• Carpool – Carpooling is a great way to cut your monthly gas costs considerably, enabling you to use that money for debt repayment. Look for online communities around your local metro on Craigslist, Reddit, or other regional websites. Not only do you get to take days off from driving, you won’t have to face the commute alone every day!
• Make sure you apply for all eligible tax deductions and credits – Many people miss important (and lucrative) tax credits or deductions. If you are unsure of how to do your taxes or what you are eligible for, then it could save you money in the long run to hire a professional (hint: generally the cost of getting your taxes professionally done is tax deductible as well).
• Leverage your social network – Some of the services you currently use probably have an affiliate network or referral plans, which pay you to generate more business for them. Sign up for your favorite service’s affiliate program, and start touting their benefits to your family and friends!
• Have medical debt? The Affordable Care Act requires non-profit hospitals to make financial assistance available to low-income patients and post those policies online, and half of US hospitals are non-profit.

• Cut out entertainment services – If you subscribe to multiple streaming services, try cutting back to just one or two, even if it’s only for a few months. Put the money you save toward paying off your debts, and use more of your free time to read, make art, or even earn online certifications relevant to your career, which could snag you a raise.
• Spend $20 less on groceries each month – Whether it’s by using coupons or cutting back on unhealthy snacks, saving just $5 each week on groceries can add up. If you save $20 each month, you’ll have an extra $240 every year to put toward your debts, which could cover an entire month’s credit card payment.
• Ditch unused memberships –Chances are high that you have memberships or subscriptions – such as digital magazines, gaming platforms, or a gym membership – that you barely use. Go through your bank and credit card statements. If there are recurring charges for a service you haven’t used in a month, cancel it. You can always pick it back up once your debts are paid down.
• Take food with you – Instead of buying food while you’re at work or out running errands, pack some with you, such as leftovers for lunch or an apple for a snack. If you don’t think this will help much, check your most recent card statements, adding up the amount you’ve spent on food (not including groceries). If you put even half of that toward your debts, you can still treat yourself occasionally while making progress on your debts.
• Keep the change – Are you constantly finding change in your couch, under your TV stand, or in your car? Start dropping it all in an empty container (like a coffee can), then cash it in when it’s full. You won’t miss your loose change, and you’ll be surprised at how much you accumulate. Put it toward your debts to pay them off faster.

Learn More About Avant Debt Consolidation Loans

Dealing with ongoing debt is hard financially and mentally, but Avant offers solutions to help. Check out our debt consolidation loans, which offer fast disbursement, fixed monthly payments, and APRs as low as 9.95%*, depending on your credit standing. You can manage your account through our easy-to-use mobile app, and we’ll be with you every step of the way. It’s just one way Avant makes a difference.

The information provided on this website does not, and is not intended to, constitute legal, financial, or tax advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal, financial, tax or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; Avant does not recommend or endorse the contents of the third-party sites.

Avant branded credit products are issued by WebBank.

Avant, LLC is a financial technology company, not a bank.

* Loan amounts range from $2,000 to $35,000. APR ranges from 9.95% to 35.99%. Loan lengths range from 12 to 60 months. Administration fee up to 4.75%.

* If approved the actual loan amount, term, and APR amount of loan that a customer qualifies for may vary based on credit determination and state law. Minimum loan amounts vary by state.

** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33.

†The decision process may take longer if additional documents are requested. Approval and loan terms will vary based on credit determination and state law.

‡ Funds are generally deposited via ACH for delivery next business day after approval if approved by 4:30pm CT Monday-Friday.

Avant of Washington, LLC DBA Avant is a wholly-owned and operated subsidiary of Avant, LLC Nationwide Multistate Licensing System #1440089.

Avant, LLC Nationwide Multistate Licensing System #1243761.

Connecticut consumers: all marketing efforts are associated with Avant of Connecticut, LLC d/b/a “Avant”, Small Loan Company License #SLC-1457409

THIS IS A LOAN SOLICITATION ONLY. AVANT, LLC IS NOT THE LENDER. INFORMATION RECEIVED WILL BE SHARED WITH ONE OR MORE THIRD PARTIES IN CONNECTION WITH YOUR LOAN INQUIRY. THE LENDER MAY NOT BE SUBJECT TO ALL VERMONT LENDING LAWS. THE LENDER MAY BE SUBJECT TO FEDERAL LENDING LAWS.

The post How to Pay Off Your Debt Faster appeared first on The Avant Blog.

Start with a Small Step

The key thing to know about budgeting is that you don’t need to be a financial expert to come up with one. Simply put, a budget is a record of two things: your income and your expenses. Start by looking at what you spend and what you earn in a month. 

Most credit and debit cards provide spending summaries where you can see all of your expenses. You’re going to come across a lot of different styles of budgeting, but all of them start with this basic step of looking at your transaction history. Once you can see where all your money is being spent, you can hopefully start to see where you may want to make some changes.

Knowledge Is Power

When you take an honest look at your finances, you might be surprised by what you find. By putting your spending under scrutiny, you’re forced to evaluate what your priorities are. 

For example, if you find that 30% of your monthly income is spent at restaurants and coffee shops but don’t have any savings set aside for an unexpected hospital bill, you might need to change your habits a little bit  to build savings for emergencies. Being honest with yourself about your spending is uncomfortable for sure, but knowing what could be holding you back is a crucial part of breaking bad habits.

Go After Your Goals

Budgeting is an important step toward achieving your goals, whether you’re aiming to pay off debt as quickly as possible or save up for your next vacation. But if you’re overwhelmed by debt or living paycheck to paycheck, it can be difficult to know what your goals actually are. If you don’t know where to begin, try following a step-by-step financial plan, such as Dave Ramsey’s 7 Baby Steps. 

Dave Ramsey’s 7 Baby Steps

1. Save $1,000 for your starter emergency fund.
2. Pay off all debt (except your mortgage).
3. Save 3-6 months of expenses for a fully funded emergency fund.
4. Invest 15% of your monthly income in retirement.
5. Save for your child’s college fund.
6. Pay off your home early.
7. Build wealth and give.

Other experts such as Suze Orman offer different strategies to quickly pay off debt, raise your credit score, and build out a plan for spending and savings.

Suze Orman 5 Step Action Plan

1. Pay Off Your Credit Card Debt
2. Raise Your FICO Score
3. Create a Spending Action Plan
4. Create a Savings Action Plan
5. Create a Retirement Action Plan

These are just two of many different ways to organize your finances. No matter what your bank account looks like, you’re always in a good place to start making goals and planning your finances.

Know What You Can Spend

When you’re trying to save for a larger expenditure, budgeting can help you achieve the big picture that could otherwise seem out of reach. By calculating your monthly income and expenses, you can easily plan for larger purchases and spending goals. 

Whether you’re looking to buy a car, a new laptop, or indulge in a vacation, making a budget will help you know just how much you have to put away each month to make the purchase. Even a large amount is manageable with the right amount of planning.

Give Yourself Peace of Mind

Ultimately, creating a budget is a tool to help you get familiar with your own finances. Even when your situation may feel chaotic and unmanageable, budgeting is a simple way to help you create some stability and reduce money-related stress. Being in control of your finances brings peace of mind so that you can focus on the things you really care about.

The post Achieve Financial Stability With A Budget appeared first on The Avant Blog.

Have a Rainy Day Fund

You can never predict what’s going to happen. Being financially fit means you’re able to handle the unpredictability of life in stride without stress. An emergency fund can help you protect against that unpredictability.

Many experts say you need to have six months of expenses in an emergency fund. That’s a great amount to have, but it can take a significant amount of time to build. Don’t let that hold you back. Instead, start with a goal to amass $500 or $1,000. That will help you build the momentum you need to reach the six month expense mark and provide you with peace of mind.

Know Where Your Money is Going

Conventional wisdom preaches that you can’t know what you don’t track. This is true about losing weight, achieving fitness goals and achieving financial fitness. If you want to be in shape financially, you need to know where your money is going.

This sounds like budgeting, but it doesn’t have to be a budget. What it does have to include is tracking your spending. Simply write down in some fashion everything you spend. There are various ways to do this, whether it be on paper or through an app on your phone or computer. The method doesn’t matter: it just matters that you do it. This act provides knowledge, which breeds confidence in managing your money.

Protect Your Credit Score

The final major step to becoming financially fit is establishing a good credit score. There are several credit scoring models though they all mainly come down to a few simple things:

• Paying your bills on time every month
• Not using too much of your available credit
• Limiting the number of new credit products you apply for
• Having a history of credit use

There’s one simple reason you want to build a good credit score – it may help you save thousands of dollars over the course of your life. A higher score will typically make it easier for you to qualify for a loan and could result in a better interest rate for personal loans and mortgages. It takes time to grow a good credit score, but it’s well worth it in the long run.

Becoming financially fit seems overwhelming but it doesn’t have to be. With a little work, you can become financially fit and pursue financial independence with confidence.

The post 3 Essential Financial Habits to Start Today appeared first on The Avant Blog.

Plan Ahead For Your Purchase 

When you pay for a larger purchase, you usually have options open to you beyond paying the entire amount upfront. Many retailers offer some form of a payment plan with monthly installments. You can also take out a loan or use a credit card, which you’ll also pay back in installments. Once you know your payment plan, budgeting will help keep you on track.

Know How Much You Can Afford

A budget is simply a record of your income and expenses during a certain period. Knowing how your money is spent month to month is key to knowing how much left over you have for things like an emergency savings fund, or for a big expenditure. 

Let’s say you’re purchasing a laptop that’s $1,500 with a credit card. Just how much do you have to set aside each month if you’re paying it off in monthly installments? Your budget can get you an answer. 

Income − Expenses = Savings

Start with your income first, then figure out your expenses. Now, let’s say you’re taking home about $1,700 every month. Figure out what you’ve got left over by subtracting your monthly expenses from your monthly take home amount. Your rent and utilities (electric, gas, water, heat, phone, internet) sets you back $1,000 per month. Your car payment and insurance comes out to $350. Your food budget is another $150.

Rent/Utilities = $1,000

Car Payment/Insurance = $350

Food = $150

Total Expenses = $1,500

Net Pay = $1,700

$1,700 − $1,500 = $200 monthly savings/payments

$200 x 12 months = $2,400 yearly savings/payments

So you’re left with $200 each month that is available to make payments toward your laptop. That means you’ll have the entire $1,500 purchase paid off in under eight months. Once that’s paid for, you can use your budget to set your sights on the next goal.

The post Making a Budget for Big Ticket Items appeared first on The Avant Blog.

Save Money On Replacing Your Air Filter

Your cabin air filter cleans the air that comes inside the car from the heating and air conditioning system. It catches pollen, dust, and other airborne material that can irritate you. The rule of thumb is to change your air filter every 12,000 miles, but of course, this depends on where you drive and live.

Changing the cabin air filter is super quick and doesn’t require any tools at all. Whenever you get an oil change, they might have recommended changing this for you for $45-$50.  The parts alone only cost $15-$25 depending on the make/model of your car.

Now if you take this to an auto mechanic, you’ll end up paying their labor cost plus the parts cost. Most mechanics will charge a markup and parts, which could bring your total to $90-$100 for what should cost $15, plus the ten minutes it takes to switch the filter out. That’s a big difference.

Buy Your Own Car Parts

This part is a bit tricky but can save you a ton of money. While some may not recommend buying your own car parts since they won’t be covered by warranty, buying simple car parts like brakes or struts can save you a substantial amount of money.

When you take your car to a shop, ask for an itemized estimate for all the parts that need to be replaced. The estimate (for obvious reasons) won’t tell you the exact brand of the parts, but it will give you a part number. Research this part number online to find the exact part your mechanic would’ve used. Next, call around to various shops to see if they will install the parts that you bought online. This will be the most difficult part. The downside to this is that your parts won’t be covered by warranty.

Oil Changes 

Mechanics always put the next scheduled oil change sticker on your windshield for one reason: they want you back in the store as soon as possible! As mentioned above, getting an oil change is a great way for a mechanic to upsell you on certain services that you may not need (such as replacing air filters). 

A lot of newer vehicles today don’t necessarily need to get an oil change every 3,000 miles. Check your owner’s manual to see how often an oil change is recommended. At $50 per oil change, if you can get away with an oil change every 7,500 miles, instead of every 3,000, you’ll save over a thousand dollars across the lifespan of your vehicle (assuming your car lasts 100,000 miles).

If you break this down into annual savings, it may not feel like much, but it’s the little things you do every day that will add up to bigger savings in the long run.

Other Tips and Advice

If you’re faced with an expensive repair, it’s always a good idea to shop around for the lowest price. When you’re getting an estimate, be aware of the exact parts that each shop recommends that you replace. Some shops may recommend that you make unnecessary replacements, so make sure you’re getting more than one opinion.  

Another thing you can do immediately to make your brake pads and rotors last longer is to follow at a greater distance while driving. Accelerating and braking constantly will wear down your brakes, and you can substantially increase their lifespan by hanging back and taking it easy on the pedal.

The post Learn These 3 Tricks to Help Save You Money on Car Repairs appeared first on The Avant Blog.

You do not need to be a crazy couponer to save money.

Find a coupon blog/website that doesn’t annoy you

There are a lot of couponing sites. There are a lot of annoying coupon sites. Bad layout with too many ads. Spend a little time browsing and see what you like best. Do you prefer one that focuses on coupons that are specific to your area? Do you like having a national overview? We like The Krazy Coupon Lady, but Coupon Mom is also popular. The one thing as a non-couponer you definitely want to make sure of is that your preferred website has a coupon database. Specifically, a printable coupon database.

Recently, printable coupon websites like Coupons.com have come to prominence. Each coupon has its own PIN and the number of times a coupon can be printed is limited by a computer’s IP address. While this sounds limiting, the coupons are free, and you don’t need to go digging for what you need. Just use the website’s search function.

There are other advantages of following a couponing site. A great deal on pasta sauce might pop up on your Facebook news feed. Or a coupon for eggs might show up on your Pinterest page. If these are things you would buy anyway, read the details. If not, no big deal. Just keep that database in mind when you need to shop.

Use coupons for things you were going to buy anyway

This is key. Yes, there are a mess of coupons for things you aren’t going to use. Focus your efforts on finding coupons for things you’re going to buy anyway. Shampoo. Dog food. Cookies. This is where that printable coupon database comes in. Make your shopping list and then see if there are any coupons available. Note, this is the complete opposite of what extreme couponers do (who find the coupon deals and then determine the shopping list). But you’re not going to that extreme, you’re just trying to save some money. Fifty cents is only fifty cents, but it’s still fifty cents.

This sort of targeted couponing allows you to save the money without spending a lot of time.

Redefine “extreme” and “stockpile”

The words “extreme” and “stockpile” have bad connotations when it comes to couponing. Throw out those ideas and start over. If you’re knocking 15% off your grocery bill, that’s 15% you aren’t paying, and while it might not seem like a lot at the time, go ahead and multiply your savings by 50 and give yourself a sense of how much that will save you over the course of a year of shopping. You’ll be surprised.

And “stockpile” does not need to mean a year’s worth of toothpaste. Who would use all of that? No, consider how much storage space you have and how quickly you go through a product. A stockpile should be enough that when you run out of something, you don’t need to immediately run out and buy the replacement. That might be only one or two extra of whatever you use.

Try the buddy system.

There are a couple reasons why having a coupon buddy can make saving money easier. One has to do with actually getting the coupons. If you decide to buy a newspaper for the coupons (you can preview the Sunday inserts before you buy a paper by searching for “Sunday coupon preview” to make sure you’re not wasting that money), you’re still not going to use all of them. But perhaps you have a coupon buddy who also buys the paper. You can swap: you give her your cat food coupons; she gives you the coupons for your favorite toothpaste. You can also swap printed coupons. Since most websites only let you print a coupon twice, if you need four bottles of salad dressing for that party next month, he prints off his two and you print him the coupons for his preferred razors.

Another way the buddy system works is with actually shopping. Frequently, coupons require you to buy multiples of something to use the coupon. I don’t need six yogurt cups, but maybe my buddy and I would each like three. Buy what the coupon requires and even up with your shopping partner at the end.

Think outside the grocery store.

Pick your favorite stores. Sign up for their loyalty program if they have one and opt into their emails, at least for a little while. A lot of the best non-grocery coupons will show up in your inbox.

And finally here are a few more tips before you go couponing:

• When printing coupons, make sure your ink is full. Difficult to read barcodes means it won’t scan and the cashier will probably reject it.
• Photocopying coupons is fraud and can land you in jail. Just don’t do it.
• Don’t buy something just because you have the coupon. It doesn’t actually save you money.
• Here are the three things you need to make sure about the store’s coupon policy: Do they accept coupons? Do they accept printed coupons? Do they restrict the number of coupons you can use in a transaction?
• See if your preferred grocery store has electronic coupons that get associated with your loyalty card. This saves time clipping and means you don’t have to remember to hand coupons over to the cashier.
• Most printable coupons expire in 30 days. Don’t print until you’re ready to shop.
• Besides Coupons.com (which recently started being traded on the stock exchange), other good sites are RedPlum.com and SmartSource.com.

The post Couponing Tips for Non-Couponers appeared first on The Avant Blog.

If you do have a pet, here are some simple ways to reduce your pet care expenses.

1. Find Low-Cost Pet Health Care
The key to caring for your pets is to be frugal, but not cheap. Just like with us humans, preventative care is an important part to keeping healthcare costs low. Schedule regular check-ups with an affordable vet you trust or find a low-cost clinic from your local animal shelter. Even some pet stores, like PetSmart, offer inexpensive services and have a hospital available for your pet’s medical needs.

2. Negotiate With Your Vet for Discounted Pet Care
Just like with all your other bills, negotiating with your vet is a good way to get discounts on check-ups for your pet. It never hurts to ask, especially if you develop a good relationship with your vet and staff. Try offering to pay cash up front for a small discount, or pay half now and half later. Remember to be thankful and treat everyone there with respect, they need to feed their families too.

3. Shop Around for Generic Pet Medications
The name brand, over-the-counter medications from the vet’s office tend to be overpriced compared to its generic counterparts. Doing a quick search online for generic pet medications will yield sites like 1-800-PetMeds and PetCareRx, that offer discounted prescriptions and medicine while sometimes including free shipping. The weekly circular or newspaper will also have coupons for pet food and medications.

4. Reduce the Quantity of Your Pet’s Food
If you take a look at the feeding directions on the food packages, you might be surprised to find we are over-feeding our pets — by a lot. By following the recommended amount on the packages, you can make sure your pet’s food lasts the appropriate amount of time. This will keep your pet healthier while saving you money on excess pet food.

Another quick way to reduce the amount of money spent on food is to shop online. As previously mentioned, the internet is a great place to find good deals for your pets.

5. Find Local Pet Veterinary Schools
If you aren’t able to find a good veterinarian at a decent price point, consider a local pet vet school for all your medical needs. Many colleges and universities in your area will offer these services to the public at discounted prices.

6. Avoid Costly Pet Grooming Services
Many costly grooming and upkeep services can be done yourself. Instead of hiring a dog walker or paying someone to bathe and brush your pet, learn to do it yourself. You can clean your pet’s teeth, wash them, and clip their claws, along with other basics that can all be done at home. You’ll not only save money by not hiring someone, but you get to spend extra time bonding with your pet.

7. Hit Up the Dollar Store
One of the biggest money drains when it comes to pets is all the supplies and toys we buy for them. From pet clothes to comfy beds, we like to pamper our pets and tend to go overboard with too many accessories. If your pet needs a few things, try hitting up the dollar store for inexpensive toys and treats. Pets tend to lose interest or destroy their toys pretty quickly, so it doesn’t make a lot of sense to overspend for them. Besides, your pet will want to play with YOU more than any toy or accessory.

8. Develop a Consistent Routine
Pets thrive much more when they have a consistent routine. They require our time, attention, and proper exercise to stay happy and healthy. If you and your pet stay active and happy, you may be able to avoid many medical expenses for both of you in the future. This cuts down on your medical costs and other emergency expenses that might arise.

Be sure to review your budget, and have a little cushion of extra funds before committing to care for a pet. They are like another member of the family, and come with additional expenses.

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