Month: October 2020

Debt Nirvana

Published on by Nichelle StephensLeave a comment

I don’t know if Rod and Karen of the podcast The Black Guy Who Tips coined the term “debt nirvana” but I love it. Debt nirvana is when you reach a point where you are in so much debt that it doesn’t matter. So many people are experiencing debt stress right now for the first time. However, people who were already cash strapped before the pandemic may have reach to the point of debt nirvana. Debt nirvana is when you can’t do much to chip away at the debt you have. I recently started rehabilitation of my student loans and if feels good. However, the amount is so much that I don’t know when I will pay it off.

Bottom Line: For student loans, check out Nerdwallet for a list of student loan refinance companies. For credit card debt, consider the rolling over to a lower interest credit card or negotiate a settlement. BTW, listen to The Black Guy Who Tips on Spotify.

Lyft Will Soon Let You Pay via Venmo

Published on by Nichelle StephensLeave a comment

Lyft riders will soon have the option for paying and splitting fares using Venmo, the company said in a blog posting this morning. Venmo joins Lyft’s other payment methods of PayPal, credit cards, debit cards, Lyft Cash and more.

To enable the payment method, users need to authorize Venmo in the Lyft app.

Venmo Rolls Out Credit Card

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News from Venmo

Starting to roll out today to select customers, the Venmo Credit Card provides a unique and special experience that only Venmo can offer, allowing you to access all of the Venmo features you already know and love in an easy-to-use card. With a personalized, dynamic rewards system that gives you up to 3% cash back* on all eligible purchases, the card is designed to optimize your spending and cash back rewards.

Fast Payments Lead to Fast Fraud

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A few weeks ago, I wrote about CashApp fraud. Now, the paper of record, The New York Times, has written about the fraud happening with the payment apps.

Bottom line: Be careful. Don’t send money to someone without verifying their payment app handle. In addition, don’t put all your eggs in one basket. If a traditional bank account is not feasible for you, put some of your money in online bank account like Chime and use Cash App or Venmo for small purchases.

OPINION: 401 (k) Fees Are Eating your Retirement

Published on by Nichelle StephensLeave a comment

I saw this Bloomberg piece trending on Twitter. Below is an excerpt:

Our current system favors costly middlemen in ways that were perhaps necessary when 401(k)s were first established 40 years ago, but are largely superfluous today. Consider that by various estimates, the average fees levied on 401(k) savings hover in the range of 0.5% annually, with much higher costs for small employers. That compares to annual expenses well under 0.1%, and often near zero, offered by widely available stock and bond index funds and ETFs in many flavors and stripes outside of 401(k)s. 

That excess cost — roughly 0.4% annually — may not sound like much. But for a worker who dutifully puts $10,000 a year for 40 years into a portfolio that earns 6% annually, the difference in final savings can be north of $150,000 — greater than 10% of the end sum. 

Bottom Line: The convenience of having a firm manage your 401(k) can be worth it. However, if your think your 401 (k) fees are too much, then do some research and move your retirement fund to where it can be managed at a lower cost.

New PPP Loan Forgiveness Form

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Yesterday, the Small Business Administration provided a simpler forgiveness application for PPP loans of $50,000 or less.

The key simplification? A borrower ignores changes in employee headcounts as well as changes in salaries or wages.

If you’re eligible to use the simpler PPP loan forgiveness form, you probably want to do so. The new 3508S application form makes things really easy.

How to Handle a Suspicious Inquiry in Your Credit Report

Published on by Nichelle StephensLeave a comment

Let’s say you’re looking at your credit reports and spot a credit inquiry you don’t recognize. An unfamiliar inquiry doesn’t necessarily mean it’s unauthorized, but it’s worth looking into. Here’s what you can do.
— Read on twocents.lifehacker.com/what-to-do-with-a-suspicious-inquiry-in-your-credit-rep-1845304464