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4 smart benefits of opening a savings account

Your income may not always grow at the same rate as your expenditure, and to combat inflation, you must invest wisely to make your money grow simultaneously. However, to invest, you first need savings from which you can set aside a lumpsum for your future security. Basically, the sooner you open a savings account, the quicker you’ll have a place to deposit and withdraw funds. Here are some other cool benefits of a savings account.

Your money stays safe in a bank
As cool as it sounds to bury a chest of treasure in your yard, you are better off leaving your hard-earned cash in the bank. For one, banks have giant vaults and guards to keep the funds safe. But mainly because of federal policies and insurance in place that safeguard the cash. The Federal Deposit Insurance Corporation insures up to $250,000 of your savings from any financial recession or depression that affects monetary value. So your money stays safe and is returned to you in any event up to the said limit.

Better returns over checking accounts
Checking accounts don’t accrue any interest. But putting your hard-earned money in savings accounts will earn you nominal interest. So, your money does not sit idle and also generates a second source of payments, however minor it may be, to pay off smaller bills.

Creates an automatic habit
Banks and financial institutions offer auto debit features. So as soon as your paycheck gets credited, banks can transfer an authorized amount directly into your savings account to create a nest egg. This way, you won’t be tempted to spend your money on unnecessary items. Also, you can automate transactions for utility bill payments. The bank will automatically debit your electricity, internet, telephone, and other home utility bills first from the salary credit. What’s left can be then divided between emergency funds, investments, purchases, and wants.

You don’t need a lot of money
Savings accounts can be opened with fewer restrictions in place. You can invest as little as $25 to open an account and maintain the minimum balance that’s required. The rest of your earnings can be easily divided across assets, stocks, and retirement instruments for the future. These accounts can be opened online as well with the least amount of paperwork and formalities. Even verification can be done virtually.

Savings account mistakes to avoid
While saving is a good habit to cultivate, don’t make these mistakes from the get-go.

Saving too much
Keeping an unrealistic goal leaves you little to no money to enjoy the things you like, and there is a high chance you’ll end up regretting this decision. Instead, you need a stable ratio that complements your earnings.
Not keeping an emergency fund
What’s the point of saving when you don’t have cash left around in a real emergency? Never make the mistake of investing all your savings into investments that can only generate returns in the future.
Not comparing terms
Don’t simply choose a bank because they offer a lucrative interest rate. For example, CIT Bank offers a high-interest yield of 4.85%, but the catch is you’ll have to also maintain a minimum despot of $5,000. Instead, choose banks that don’t have lock-in amounts, so you have the flexibility to withdraw your savings to fund a real emergency.

If you are still unsure about maximizing the benefits of opening a savings account, consult with a financial planner once to map out your portfolio.

Top debt settlement companies in the USA

Incurring debt is really common in this age and era as everything has become extremely expensive, from college education to owing a house. If you ever feel that your debt is too large and you may not be able to pay it in time, then you can seek the help of a debt settlement company. These companies essentially communicate with your creditor to try and lower your debt and the rest of it is typically forgiven. Given below is a list of the top 9 debt settlement companies in the USA. National Debt ReliefIf you have USD 7,500 or more in debt, then the National Debt Relief can be a great choice for you. It is one of the most prominent debt settlement companies in the country. The initial consultation is offered for free, but you will have to pay 15-25% of the settled debt amount as a fee. Freedom Debt ReliefThis a dedicated company that offers debt relief services to people who have at minimum USD 7,500 to USD 10,000 in debt. 15-25% of the settle debt amount is charged as fee once a settlement is negotiated, and in return, they offer the possibility of settling the debt within 24-48 months. CreditAssociatesCreditAssociates surely is one of the top 10 debt settlement companies because of their satisfying services. They help customers who have USD 7,500 or more in debt and charge a portion of the settled debt. You can also use their services via mobile apps. Accredited Debt ReliefGenerally, people with a minimum debt of USD 10,000 use the services of companies such as this to lower the due amount; however, Accredited Debt Relief has no minimum amount stated on their website. They take two to four years to complete the process and the fee is charged only after that. CountryWide Debt ReliefThey recommend that customers with USD 10,000 or more in debt avail their services to get their debt resolved. They promise to lower the debt by 20% or charge nothing. Their track record shows a great success rate. United Debt CounselorsIf you are looking for the top 10 debt settlement companies, United Debt Counselors should be considered. This company offers its services through professional debt counselors to help you settle credit card or unsecured debts. Century Support ServicesCentury Support Services can help you reduce your debt effectively. The consultation is initially free and the fee is charged only after the first payment is given to the creditor. Subsequent fees are taken in a similar fashion.Elite Financial ServicesThe company offers to settle your unsecured loans in as short a duration as 12 to 36 months. They provide debt analysis for free and charge the debt settlement fee only after the process is completed. New Era Debt SolutionsNew Era Debt Solutions has been providing debt settlement services for over 20 years. On average, they have helped reduce around USD 250,000,000 for their clients can reduce your debt by 47% of the original amount. Now that you know the top 10 debt settlement companies in the USA, you can compare their fees and services to determine the best one for your needs.

8 credit card habits to avoid

Credit cards are easy to use and super convenient when used properly. But, these cards can also be devastating to your financial health and can have a negative impact on your credit score if you use them wrong. Poor or irresponsible credit card usage can lead to debt, which can affect your long-term financial stability. Read on to learn about which credit card habit of yours might be doing more harm than good. Not paying your credit bill in fullOne of the most common credit card habits that will hurt you, in the long run, is not paying your credit card bills in full. Paying only the minimum due or only part of your bill does not really allow you to make any progress on paying off your balance. In fact, in such cases, you are more likely to end up paying more interest. Plus, you are also damaging your credit score and raising your credit utilization. It is a good practice to only spend how much you need and pay off all of it at once. Not checking your statement oftenNot checking your credit card statement can also lead to trouble. There could be a chance that you forgot about some expenses. This could lead to your spending over your assigned budget. There could also be an increase or decrease in your credit card limit or there could be a payment that was not applied properly. In any case, it is important to keep tabs on your statement. You can easily do so by checking your credit/banking app on your smartphone. Making late bills paymentsAnother common mistake that many individuals make with their credit cards is making late payments. Constantly making late payments can lead to serious troubles. For starters, you may have to pay additional late fees. Additionally, those who habitually pay late may also notice an increase in interest rates. Late payment remarks can also get added to your credit score, which can affect your ability to maintain good credit. Closing older credit accountsYour credit score is dependent on a wide range of factors. One of the factors that contribute significantly to your score is your credit history. Closing any older credit accounts can actually lower your credit score. Those who have high scores usually have long credit histories, so avoid closing any old credit accounts. Taking out loans or advancesTaking cash advances on your card is convenient and easy. But, most credit card companies will charge you a higher interest rate for cash advances compared to a regular credit card purchase. You also do not receive a grace period to pay back a cash advance. You most probably will have to additionally shell out for a cash advance fee, which is three percent of the cash amount you have withdrawn. Applying for new credit cardsApplying for new cards when there are low-interest promotions or bonuses is super tempting. But, getting new credit cards even though you already have a few can hurt your credit score. Having multiple cards can also make it super difficult to manage them. Not using your credit cardsNot using your credit card often is as damaging as using your credit card too much. If your card is unused for a long period of time, your credit score will disregard those cards. The issuer may also cancel your dormant card. Making balance transfersBalance transfer credit cards with low-interest rates are a great way out of paying the high-interest debt. But, transferring your debt multiple times can affect your finances negatively. Not only will you be paying off your debt amount, but you would also be paying additional transfer fees.