Interest rates on personal loans have steadily increased since early 2022, coinciding with the Federal Reserve’s efforts to curb inflation by raising the federal funds rate.

But anticipated Fed rate cuts before the end of this year may not bring personal loan rates down right away.

“Typically, we don’t see personal loan rates drop as a result of those rates dropping,” said Jean Hopkins, director of consumer lending at WeStreet Credit Union in Tulsa, Oklahoma.

Changes to the federal funds rate have a greater impact on variable-rate credit products, such as credit cards or home equity lines of credit, she said. Personal loan rates, on the other hand, are driven by larger economic factors, such as inflation and unemployment.

Your exact personal loan rate is most influenced by your creditworthiness and income. If you’re planning to borrow this year, here are a few things you can do to get a low rate on a personal loan.

Maintain a high credit score

Lenders rely heavily on credit scores to determine how likely an applicant is to repay a loan. Generally, those with high scores get the lowest rates.

“If you have a high credit score, banks think that you’re a good risk to take,” says Spencer Betts, certified financial planner at Massachusetts-based Bickling Financial Services.

He says borrowers should check their credit report before applying for a personal loan and take note of any past-due credit accounts or accounts you don’t recognize, which could indicate identity theft.

You can access free weekly credit reports at AnnualCreditReport.com.

Potential borrowers looking to maintain or boost their credit scores should make on-time payments toward credit cards and other loans, Hopkins says, because payment history is the most important factor in your credit score calculation. She also says borrowers should maintain a low credit utilization, which is the percentage of available credit you’ve used on revolving accounts like credit cards.

“Make sure if you’re borrowing money on credit cards that you’re not borrowing more than, say, 30% or 40% of your balance on that line of credit,” she says.

Keep a low debt-to-income ratio

Another factor lenders consider when underwriting a personal loan is the percentage of your monthly income that goes toward debt payments.

“You want to make sure your debt-to-income ratio is low,” says Jen Hemphill, a Kansas-based accredited financial counselor and host of the Her Dinero Matters podcast. “The lower it is, you’re going to have a better chance of a lower interest rate.”

Debt-to-income ratio, or DTI, is calculated by dividing your total monthly debt payments by your monthly income. Multiply that figure by 100 to get the ratio expressed as a percentage. Hemphill suggests keeping your DTI around 30% or less, though some lenders will accept higher ratios.

If your DTI is high, consider paying down debt before applying for a personal loan for a chance at a better rate.

Hopkins suggests paying off smaller debts first to quickly eliminate those monthly payments and consequently lower your DTI.

Raising your income — which would also lower your DTI — may be a difficult task, but be sure to include all sources of income on a loan application. Many lenders count alimony, child support and Social Security payments when calculating DTI. You might even be able to include a partner’s salary as household income.

Compare offers to find the best deal

When you’re preparing to apply for a personal loan, it pays to compare offers from multiple lenders. Each lender has its own qualification requirements and underwriting process, so you could get a different APR from one lender to the next.

You can compare costs by pre-qualifying online. This process lets you preview your potential APR, monthly payment, loan amount and repayment term with only a soft credit pull, so your credit scores won’t be affected.

Pre-qualifying gives you “an idea of what interest rates are available for you based on your own situation,” Hemphill says. “That helps you shop around.”

She suggests paying special attention to the repayment terms you’re offered and how they affect the amount of interest you’ll pay over the life of the loan. Long terms may be appealing because they lower your monthly payment, she says, but they increase the total cost of the loan.

You can use a personal loan calculator to see how the given loan amount, term and interest rate affect monthly payments and interest costs.

If you have two competitive loan offers, compare perks and features to determine which is the right fit for your plans, Hemphill says. For example, some lenders provide a rate discount for setting up autopay or for having the lender directly pay off your other debts when you get a debt consolidation loan. Others may provide credit-building assistance so you can boost your score while you repay the loan.

Nicole Dow writes for NerdWallet. Email: articles@nerdwallet.com.

The article How to Score a Low Personal Loan Rate in 2024 originally appeared on NerdWallet.

Traveling during peak season can be a drag. Visiting Europe in the summer, for example, means contending with higher prices, tight availability and throngs of fellow travelers.

That’s why many savvy travelers choose to vacation during “shoulder seasons” that lie between peak season and low season — spring and autumn for many destinations. Yet remote work and overcrowded peak seasons have increased the popularity of these shoulder seasons.

Take the Jersey Shore, a popular seaside destination in New Jersey, for example. This coastal region has seen a significant increase in visitors during the fall months, with October through December occupancy rates in 2023 up by as much as 50% compared to pre-pandemic levels, according to a 2024 report from AirDNA, a short-term rental analytics firm. And it’s not the only place that’s getting more visitors outside of peak season.

As many destinations see more tourists spill into the shoulders, what’s the best way to avoid these offseason crowds?

Avoid trendy destinations

If everyone is zagging their travel plans, maybe it’s a good time to zig.

For example, Japan saw a huge influx of travelers this spring. The number of U.S. citizens departing for Japan in March through May of 2024 rose 17% compared with the same months in 2023, and jumped a whopping 41% compared with the same months in 2019, according to the International Trade Administration. Similarly, Greece saw nearly three times as many U.S. visitors from March through May in 2024 compared to the same period in 2019.

Closer to home, popular national parks have seen a surge in shoulder season crowds.

In Maine, “Acadia National Park, which was once highly seasonal with peak demand only in July and August, now sees high demand stretching from June through October,” Chloé Garlaschi, a communications manager for AirDNA, said in an email. “This trend is part of a broader shift where national park destinations are attracting visitors outside of their traditional peak periods.”

If everyone you know is talking about visiting Tokyo or Athens, Greece, maybe it’s worth researching locales that have seen fewer tourists in recent years. For example, Australia saw 27% fewer U.S. visitors in the spring months of 2024 compared with the same months in 2019. China, which has seen much less U.S. tourism since the start of the COVID-19 pandemic, had 78% fewer U.S. visitors this spring compared with 2019.

Embrace the offbeat

Even within popular destinations, it’s possible to venture to offbeat locales with far fewer tourists. Most travelers to Japan visit the Eastern cities of Tokyo and Kyoto, but fewer venture inland to mountain towns such as Takayama, which boasts impressive temples and a quiet, quaint atmosphere. And few foreign tourists visit the island prefecture of Okinawa in Japan’s south, despite its warm weather and distinct culture from the mainland.

In the U.S., well-known national parks like Acadia (in Maine) and Yosemite (in California) may be popular during shoulder season. But lesser-known parks such as Great Sand Dunes National Park in Colorado or California’s Channel Islands National Park may see smaller crowds.

Avoid high prices

When demand for travel to a destination peaks, so do prices for airfare, accommodations and ground transportation. So looking for deals can save you money and help you avoid the most crowded spots.

According to data provided by Hopper, a travel booking platform, these destinations in the U.S. are seeing the biggest spike in flight booking demand this autumn:

• Seattle.
• Portland, Ore.
• Salt Lake City.
• San Jose, Calif.
• Hawaii Island, Hawaii.
• Spokane, Washington.
• Lihue, Hawaii.
• Indianapolis.
• Portland, Maine.
• Asheville, N.C.

Meanwhile, these international destinations are seeing the biggest price spikes:

• Seoul, South Korea.
• Shanghai.
• Athens, Greece.
• Frankfurt, Germany.
• Venice, Italy.
• Zurich.
• Lima, Peru.
• Brussels.
• Kuala Lumpur, Malaysia.
• Bangalore, India.

Of course, just because a flight is expensive doesn’t mean the destination will be crowded, but it does provide a proxy for demand. These lists give a sense of which spots are hot even when the weather isn’t.

Know thy shoulder

Not all shoulder seasons follow the same pattern, so knowing the right time to travel to avoid crowds means more than just leaving in the spring or fall.

“In Phoenix and Scottsdale, [Arizona], we see an unconventional seasonal pattern,” Garlaschi said. “The peak season actually falls in February and March due to the mild winter climate.”

And keep in mind that, even though travel data show shoulder seasons getting more popular, crowds (and prices) will still be much lower during these off-peak periods. You don’t have to travel to the North Pole in winter to avoid overtourism.

Sam Kemmis writes for NerdWallet. Email: skemmis@nerdwallet.com. Twitter: @samsambutdif.

The article How to Avoid the New ‘Shoulder Season’ Crowds originally appeared on NerdWallet.

The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.

Giving money to teenage children might sound simple, but it can quickly become complicated. Parents often want to set limits on how much their teens can spend, teach them about money management and protect them from fraud, all at the same time.

“It’s about knowing your kids and tailoring the approach a little bit to the child,” says Amy Spalding, a certified financial planner at District Capital Management, a Washington, D.C.-based firm. Some kids need more active help to stay organized and learn how to stay within a budget, while others need to be encouraged to practice spending in the real world.

Here are some strategies to consider when providing money to your teenager:

Start with cash

When children are using money on their own for the first time, sticking with cash can be the easiest way for them to learn how to manage it, says Dan Tobias, a CFP and founder of Passport Wealth Management in Cornelius, North Carolina. “First, get them to understand and appreciate money with paper. Then, when you need to, you can switch to electronic methods,” he says.

That’s the approach he uses for his own three children. He gives them a cash allowance and lets them decide how to spend it, which includes letting them make mistakes.

“Don’t be afraid to let them fail,” Tobias says. Kids might lose a $20 bill, splurge on something that breaks the next day or, in his case, buy a fish and a tank that they soon don’t want anymore. Those mistakes are critical teaching moments, he says, so it’s important parents don’t micromanage their kids’ spending.

Leverage familiar apps

Once children start earning and spending their own money without you nearby, digital payments become more appealing. You can use methods you and your kids may already know, like Apple Wallet, Venmo or other apps already connected to your phone. They are often connected to a parent’s credit card or checking account, unless a child already has their own.

Sarah Behr, a financial planner and owner of Simplify Financial in San Francisco, says apps can be helpful because a parent can closely monitor a child’s spending and “keep the guardrails up” while still giving them the freedom to make their own spending decisions.

If a teen overspends without permission, that can lead to a helpful conversation about budgeting. At the same time, parents can find ways to make sure their own accounts are protected, by using the apps to set spending limits or creating separate accounts with low balances and low credit limits.

Spalding turned to digital payment apps when her teenagers started spending money on their own. She set up a separate bank account with a low balance to limit the potential damage if the account was compromised or a teen overspent.

(Kimberly Palmer shares how she gives money to her teenage daughter.)

Try paid products for more support

Debit cards and apps designed for kids like Greenlight, GoHenry and BusyKid offer additional support for families, such as allowing them to actively manage a budget and chores, but they often come with a fee.

Greenlight, which costs between $5.99 and $14.98 a month, offers parental controls, the ability to assign chores and allowance automation, among other features. “Kids can understand the bigger picture of money management” and also set savings goals for themselves, says Jennifer Seitz, director of education at Greenlight.

Gregg Murset, a CFP and CEO of BusyKid, a debit card and chore app for kids, says the app helps parents teach kids important lessons about tracking money, investing and giving to charity. “That’s what we do as adults — save, invest and share — so we are modeling reality,” he says, adding that kids ages five through 17 can use the app, which costs $4 a month.

Encourage savings

Regardless of the method you choose, saving money should be part of the conversation with your kids, Spalding suggests. When her children were young teenagers, she took them to a local bank to set up a savings account so they could deposit money they had accumulated from babysitting jobs and gifts. She says you could also use an online high-yield savings account to see the money compound more quickly.

Investing in a Roth IRA can be a smart next step for children earning their own money. Behr offered her daughter a savings match up to the amount she contributed to encourage her to save more for the future. “I’m hoping the discipline of this exercise in delayed gratification sinks in,” she says. Teens can save up to the amount of their earned income with a limit of $7,000 for 2024.

With that kind of practice, saving for the future might even become a lifelong habit.

Kimberly Palmer writes for NerdWallet. Email: kpalmer@nerdwallet.com. Twitter: @kimberlypalmer.

The article The Best Ways to Give Money to a Teenager originally appeared on NerdWallet.

Is driving for Uber worth the money? I put this side hustle to the test and nervously drove strangers around northern Maryland for a couple days to find out.

Here’s what I earned:

• I made $143.73 over the course of three Uber “shifts” that totaled roughly 10 hours of active driving.
• I completed 10 trips, put 305 miles on my economical Uber rental and spent $38.80 on one tank of gas.
• Subtract the gas cost from $143.73, and I earned $104.93, or $10.49 an hour.
• Only $3 of my earnings were tips, which I found surprising — because I’m nice!

If you’re wondering, the minimum wage in Maryland handily beats my earnings at $15.00 per hour.

Uber wasn’t a lucrative side hustle for me, but it was an interesting experiment. Here are four things to keep in mind if you’re thinking about trying Uber. And if you want to watch all the ups and downs of this side hustle stress test, here’s a video of my experience.

Give yourself the flexibility to roam

During each of my three Uber “shifts,” I had the idea that I’d do rides relatively close to where I live. But the reality of living in a less populated area is that short, local trips can be few and far between. I found that to be the case even on a Friday evening in my suburban town, located roughly 50 minutes north of Baltimore.

I learned that to earn higher fares, you need to be open to where the Uber trip takes you. I left a lot of money on the table by skipping trips that would end too far from my home base. Uber works by matching riders with nearby drivers. As a driver, you have just a few seconds to accept a ride request when it comes in. I often took too long to decide when considering distance.

Toward the end of that Friday, I caved and accepted a 30-mile trip with a fare of $30.42. But when it was over, it was after 9 p.m. and I was a long way from home.

If I had put in 8-hour shifts and left myself to the mercy of the Uber Driver app, I’d have done better. But if I’m going to be driving all over creation for hours, is Uber a side hustle, or is it a main hustle?

Your car is a taxi cab and your primary tool

All that driving means you need a car that’s up to the task — something affordable, reliable and efficient. My personal vehicle is a gas-guzzler so I used Uber’s car rental service to rent a more appropriate vehicle and make this test more realistic.

But what I realized is a lot of people rent their Uber rides on the regular. If you go this route, you must rent from one of Uber’s approved rental company partners. The rental office I used, a local Hertz that partners with Uber, was packed, and I found the experience to be super hectic. It took three hours to get my car, and the one they gave me was a downgrade from what I reserved in advance.

Because of my experience, I don’t recommend renting if you can avoid it. Uber rentals cost $260 or more per week, so the recurring cost will eat heavily into earnings.

Finding your own affordable used car would likely cost less in the long run, even in cases where you get a car loan with bad credit. For example, let’s say you finance a $20,000 used car for 60 months with a high 19% interest rate. The $518 monthly payment costs less than the $260 a week rate for a rental car.

You will need to factor in insurance (which can include rideshare insurance), maintenance and repairs when comparing costs. You can turn to the Nerds for resources on how to build credit and finance a vehicle you can afford.

Consider a “slush fund” for car costs

I had the pleasure of meeting and riding home with a true Uber pro after I returned my rental car. His name is Greg Hiteshew, and Uber is his post-retirement hustle. He drives most days, says he earns between $1,000 and $1,500 in a typical week and is disciplined about saving money for car costs.

Hiteshew says he sets aside $40 at the end of every day and has done so for years without fail. He says it’s a daily habit that ensures he has enough to cover maintenance and repairs for his current car, and helps him save for the next car.

Consider putting your daily $40 (or whatever you can swing) in a high-yield savings account for the added bonus of interest on top.

Embrace the human side of rideshare

While we chatted on my ride home, Hiteshew opened up about how driving for Uber helped him cope with the loss of his wife. She passed away from cancer 12 years ago, and in the years after, he found himself in a pretty dark and lonely rut. Then one day a friend had a suggestion for a side hustle that would change his life.

“He said, ‘I want you to Uber,’” says Hiteshew, talking about meeting with his friend. The friend hoped it would give him something to keep his mind occupied. Hiteshew thought about it and decided to give it a try a week later.

“It worked,” he says. “Turns out I love it. I really enjoy doing it. I’ve met a lot of nice, nice people.”

I get what he’s talking about. I’ve been working from home for years, and trying Uber put me back into the world. I interacted with different people, visited parts of my area I hadn’t been to and realized how critical a service like Uber is for those who may not be able to afford a car. It reminded me how important it is to communicate with others, strangers even.

Turns out that part of the experience was more valuable than the money. And if I drive for Uber again, I think I learned enough to do better than $10.49 an hour.

Tommy Tindall writes for NerdWallet. Email: ttindall@nerdwallet.com.

The article How Much Does an Uber Driver Make? I Drove for Uber to Find Out originally appeared on NerdWallet.

Home prices may have come down from their 2022 high, but they remained out of reach for the typical would-be first-time buyer in the second quarter, especially in the nation’s most populous areas.

Buying a home in this market can be particularly hard for people who haven’t done it before. First-time buyers traditionally have lower incomes and less established credit than repeat home buyers. Further, they generally make smaller down payments — 8%, on average, according to the most recent Profile of Buyers & Sellers from the National Association of Realtors, compared with 19% for repeat buyers. Buying a first home has arguably never been easy, but it’s gotten extremely difficult under current conditions.

With a down payment of 8%, housing payments on a typically priced home in the second quarter of 2024 would equate to almost half of the median gross monthly income for Americans of first-time buyer age.

Making a larger down payment or choosing a less desirable home could make this initial purchase easier, but not all homebuying hopefuls will find those options possible.

Housing payments for first-time buyers: 49% of income

The average sticker price for a home in the second quarter of this year was $439,000, according to NerdWallet analysis of Realtor.com data. But the advertised price of a home is far from the only consideration of affordability.

For that reason, we examined the potential housing payment for first-time buyers in the second quarter. This payment not only accounts for the price of the home, but also the typical first-time buyer down payment, mortgage rate, real estate taxes, homeowners insurance and PMI, or private mortgage insurance — a requirement on conventional mortgages financed with less than 20% down.

That estimated monthly housing payment using the nationwide average home price was close to $3,500 in the second quarter of the year. That’s 49% of the median income for Americans in the first-time home buyer age group. And estimated payments in some of the country’s largest metro areas were considerably higher.

First-time home buyer tip: In the highest-priced markets such as Los Angeles, New York and San Diego, putting 8% down on a home may not be feasible. That’s because typical home prices in these areas are well over one million dollars, and would require what’s known as a jumbo mortgage. Currently, loans over $766,550 exceed the cap for conforming loans, according to the Federal Housing Finance Agency, and jumbo loans generally have stricter standards, including larger down payment requirements. Buyers in these markets will need higher-than-average incomes, larger down payments and flexibility on their side to become homeowners.

In other areas, buyers hoping to put less than 20% of the sale price down have more options. Many lenders offer loans with lower down payments — as low as 3% — and most states have first-time home buyer programs with benefits such as down payment assistance.

Buyers (and borrowers) have a few options

One lesson that became apparent to home buyers over the past few years: You can’t take low mortgage rates for granted. After several years of rates below 5% (with periods even below 3%), current rates are a reminder that it’s not only home prices that matter in home affordability calculations. Borrowers can take some steps to ensure they qualify for the lowest rates available, but lenders will only go so low. Home down payments are another input that can have a considerable impact on how much buyers spend each month.

Increasing a down payment from 8% to 12%, for example, can shave several hundred dollars off of the monthly housing cost. But if possible, increasing your down payment to 20% can eliminate the PMI requirement on a conventional loan.

First-time home buyer tip: To be sure, putting 20% down on a high-priced home won’t be possible for all first-time buyers. It’s an especially tall order when homes are priced as high as they are now. But the larger your down payment, the less you have to finance, and every bit helps. So, for instance, if you’re waiting for mortgage rates to come down a bit, using that time to intentionally squirrel away more in savings means you can also take out a smaller loan when you’re ready to start shopping. If you hope to buy in the coming months, keeping your down payment fund in a high-yield savings account ensures it’s readily available. But if you plan on waiting a year or two and can stand putting the money out of reach, a certificate of deposit may offer higher rates.

Inventory deficit remains the driver of high prices

The high home prices we currently see are a direct result of too few homes. This low supply in the face of high demand drives prices up. And currently, the supply is so low that even seasonal quarterly gains in inventory aren’t enough to provide relief.

The second quarter of the year generally brings more listings to the market, and Q2 of 2024 was no different. Across the country, the number of homes on the market rose by 17% compared with the previous quarter, and a generous 34% compared to last year’s second quarter. Despite these gains, list prices rose 4% in the second quarter.

While inventory continues to climb, the current number of homes on the market at any given time is still at a significant deficit from where it was before the pandemic.

First-time home buyer tip: In the past, first-time buyers began their homeownership journey with a “starter” home — something smaller or a home that needed some work — to help keep the price point reasonable. But in this market where homes are few and far between, starter homes are difficult to find. One way to increase the number of homes available to you is to expand your search. Whether geographically — looking at homes in different neighborhoods or even towns — or by considering home types or features that aren’t on your long-term wishlist, the more flexible you are in your homebuying journey, the more likely you are to find something that fits the bill.

The analysis methodology is available in the original article, published at NerdWallet.

Elizabeth Renter writes for NerdWallet. Email: elizabeth@nerdwallet.com. Twitter: @elizabethrenter.

The article Q2 Affordability Obstacles Hinder Would-Be First-Time Home Buyers originally appeared on NerdWallet.

I had never driven an electric car before, so, naturally, I made sure my first drive covered 500 miles across two states in one day.

Although public opinion on electric cars is still mixed, facts suggest these cars are not a passing fad. Electric vehicle sales in the U.S. topped 1 million for the first time in 2023, quadrupling the figure three years prior. And although demand has slowed, a recent study by industry group Cox Automotive found that more than half of shoppers previously identified as skeptics are poised to enter the EV market in the second half of the decade.

While my first experience with an EV was unusual — I rented one to drive from San Jose, California, to a work event in Las Vegas — it included many situations a prospective buyer would want to consider. If you’re new to EVs or just curious about what a road trip in one is like, here are the lessons I learned.

Maximum range isn’t the actual range

The 2023 Chevy Bolt EV 1LT that I drove has a combined miles-per-gallon equivalent (MPGe) of 120 and a maximum range of 259 miles, according to the U.S. Department of Energy. These totals didn’t translate to real life.

That’s because an electric vehicle’s maximum range doesn’t take into account the use of anything in the car, including air conditioning/heater, the infotainment system, charging your phone or the terrain you’ll drive through. It’s just a measurement of what the 100% charged battery is capable of.

It turns out, though, that an electric battery functions best when it is between 20% and 80% full, because going over that exposes the battery to high voltages that can accelerate degradation over time. (Think of your phone battery and how the battery dies faster as the phone ages.) So if you’re keeping the car’s battery between 20% and 80% most of the time, your battery should last longer.

When I picked up the car, the battery was at 80%, which gave me a minimum of 151 miles. I had mapped out my trip based on where I could find public charging stations, and I knew the first leg of my trip would cover about 150 miles while driving through a mountain pass. Before heading out, I decided to top up the charge to a minimum of 163 miles — but, happily, I got to the first stop with 60 miles left, mostly due to regenerative braking that takes the energy usually wasted with braking and puts it back into the battery.

Charging isn’t always available

I charged the vehicle four times on my trip, using three of the four largest public charging companies: Electrify America, ChargePoint and EVgo. Because all three charging companies function differently, this meant that each time I was figuring out how payments and plugging in worked. It felt like I was 16 again and learning how to fuel up my car for the first time.

Depending on your area, you might have a plethora of charging options or not many at all, and it’s not always predictable. Consider two California cities of comparable size: Fresno with a population of 542,107 and Sacramento with a population of 524,943. When it comes to charging stations with Level 2 and direct-current (DC) fast chargers (the two fastest charging options), Sacramento has more than double the number of chargers in Fresno — 359 and 174, respectively, according to the U.S. Department of Energy. And there’s even more of a divide in different areas across the country.

Keep in mind, too, that not all of those chargers work for every car. Tesla has the largest network of charging stations by far, but while the company is opening up that network to other manufacturers and charge-point operators, that process is very much in-progress. What’s more, at any given station some of the chargers may be out of order (two of the four stations I visited had chargers that weren’t working), and if you get to a station and it’s full, you may have a wait ahead of you.

Charging may take a long time

Enter a drive from San Jose to Vegas in your favorite mapping software and it’ll say it takes about eight hours. My drive required 11 and a half.

Travel time in an EV depends on the vehicle you’re driving and what kind of public chargers you use. DC fast chargers can fill a battery electric vehicle to 80% in as little as 20 minutes or as long as an hour, according to the U.S. Department of Transportation. When I stopped at the ChargePoint in Coalinga, California, I had a minimum of 60 miles left in the battery. I used a DC fast charger for 1 hour, 9 minutes to gain an additional 103 miles.

But most plug-in hybrids and many electric cars are not yet equipped for that type of fast charging, and so realistically it may take longer. I didn’t do any Level 2 charging on my trip, but that technology can charge a battery electric vehicle to 80% in four to 10 hours and a plug-in hybrid in one to two hours.

In total I charged for 3 hours and 6 minutes over my 529-mile drive. For comparison’s sake, I drove a gas-powered car back from Vegas and had to gas up only once for eight minutes.

Charging anxiety is real

Awful. That’s how it feels to be on a long drive in an EV wondering if you’ll make it to the next charging station.

I experienced this twice on my trip — when I reached Mojave, California, with a minimum of 20 miles left, and then pulling into Las Vegas, with a minimum of 32 miles left. Both times I was genuinely concerned that I wouldn’t make it to my next stop. I turned off the air conditioning, stopped listening to my audiobook, unplugged my cell phone and tried to remain positive.

I started to plan out my options for what to do if the car died. I looked up charging stations near me using my phone, but had no luck. Worst case, I was ready to use my AAA membership, although I don’t know what they could do other than tow the vehicle to a charger. Of course, this was first timer’s nerves, but in survey after survey, anxiety over charging and range is among the biggest blockers to widespread EV adoption, with one noting that some 40% of current EV owners still report having a little.

A smartphone is essential for EV drivers

When you’re driving a gas car, there are plenty of opportunities to stop. In fact, you’ll see road signs along the highway to let you know when you can stop. This isn’t something you can rely on in an electric car. Instead, you’ll have to rely on your phone or previously mapped out charging stations. Despite mapping my stops ahead of time, I ended up looking for stops when I started getting charging anxiety.

Additionally, paying for charging may require your cell phone. Gas stations generally have two payment options: at the pump or with an attendant. None of the charging stations I visited had an attendant working, and ChargePoint didn’t let me tap or pay at the plug. Instead, I had to pay using its app, which isn’t ideal if your phone is dead or you can’t get the app to work.

Would I buy an EV after this trip?

Yes, but there are some caveats. I’m fortunate enough to be a two-car household, and if we were to get an electric car, it would replace one of the gas vehicles. I suspect electric cars are great for short trips, like a daily commute, but I’m not ready for one on a longer journey. And if I did buy an electric car, I don’t think I would rely on public charging. I would install a Level 2 charger in my home, which costs extra for the charger and the electrician but gives peace of mind that I could quickly top up every night.

Julie Myhre-Nunes is an editor at NerdWallet. Email: jmyhrenunes@nerdwallet.com.

The article What I Learned From My First EV Road Trip originally appeared on NerdWallet.

A typical four-year degree can cost $115,000 or more, according to a 2023 College Board report. Borrowing money to pay for college adds to the total cost, due to interest.

Federal student loan interest rates range from 6.53% for undergraduate borrowers to 9.08% for parents. Private student loans have an even greater range, and the rate you get generally depends on your credit.

To lower the overall cost of your education, consider making optional student loan payments while you’re in school or during your grace period. Even if you can only afford a small amount, every payment you make will decrease the amount of interest that accrues. You could save thousands over the life of your loan.

“Interest begins accruing on most private student loans and some federal student loans as soon as students receive the money, even if payments aren’t due,” says Jill Desjean, senior policy analyst with the National Association of Student Financial Aid Administrators.

Nerdy Tip There is one exception: If you qualify for federal subsidized Direct loans, the government covers the interest charges while you’re in school and during your grace period.

The impact of making student loan payments while in school

Paying even small amounts while you’re in school can add up. Consider this hypothetical example: Let’s say you take out $10,000 your first year of school at 6.53% interest on a 10-year repayment term. Here’s how different repayment amounts impact your total savings:

• If you don’t make in-school payments, you’ll pay $141 per month once your repayment period starts. By the end of your repayment term, you’ll pay a total of $17,653.
• If you pay $25 per month while in-school, you’ll pay $132 per month once your repayment period starts. By the end of your repayment term, you’ll pay a total of $17,161 — a savings of $492.
• If you pay $50 per month while in-school, you’ll pay $116 per month once your repayment period starts. By the end of your repayment term, you’ll pay a total of $16,669 — a savings of $984.
• If you pay $100 per month while in-school, you’ll pay $86 per month once your repayment period starts. By the end of your repayment term, you’ll pay a total of $15,686 — a savings of $1,967.

If you have multiple loans and can’t afford to make payments toward all of them, pay the one with the higher interest rate first, says Amy Lins, vice president of customer success with Money Management International, a non-profit financial education agency.

Making payments will also help you avoid the effects of capitalization — where interest is capitalized and added to your principal balance. Capitalization is typically what people mean when they talk about paying interest on your interest. By making payments while in college, you can cut down on the amount that’s capitalized, preventing your loan balance from ballooning out of control.

When should you skip in-school payments?

Depending on your circumstances, making in-school payments may not make sense. If you fit into one of the following groups, you may be better off deferring your payments until you leave school and your grace period ends.

You can adjust your budget

If you find that you can afford to pay $50 or more per month, you may need to rethink your budget and approach to borrowing.

“While making payments during school can save student loan borrowers money, the cheapest option is to not borrow at all because of loan origination fees,” Desjean says. “If you’re in a position to make payments on your loans during school, examine whether you can use that extra money to pay for school expenses directly without borrowing.”

Similarly, if you borrow money, the school will send you a check for the excess amount after covering your tuition and fees. You can use the cash to cover other education expenses, including your textbooks and meal plan. But according to Robert Farrington, founder of The College Investor, those excess dollars are an opportunity to reduce your debt.

“I would always encourage you to minimize lifestyle expenses,” he says. “Maybe get an extra roommate or anything you can do to save money, and then you can take that refund and put it right towards your student loan. Even if you wait until the end of the semester or the end of the academic year, I would throw it right back at your student loans ahead of time instead of keeping that.”

You’re pursuing loan forgiveness

If you’re planning on working as a teacher or for a non-profit organization, you may qualify for loan forgiveness under Public Service Loan Forgiveness (PSLF), so making extra payments may not make sense.

“If you’re working in public service and qualify for PSLF, you could end up a lot wealthier in life by paying as little as legally allowed on your loan and receiving loan forgiveness,” Farrington says. “If you know what direction you’re taking while in college, you can give yourself a head start.”

You have other debt

Your student loans may not be the only form of debt you have. And if you have other debt with higher rates, it may be financially wise to target the highest-interest debt first.

“If someone has accumulated credit card debt, for example, that’s likely to be at a much higher interest rate [than student loans],” says Lins. “And I would tackle that first to keep that credit card balance from growing.”

You have subsidized federal student loans

If you have subsidized federal student loans, which are available to students with financial need, interest does not accrue while you’re in school or during your six-month grace period. If you have this type of loan, your balance won’t be larger upon leaving school than it was when the loan was disbursed.

However, making in-school payments if you’re able can still help you in the long run, because interest will accrue on a smaller balance once you leave school.

Eliza Haverstock writes for NerdWallet. Email: ehaverstock@nerdwallet.com. Twitter: @elizahaverstock.

The article Want Cheaper College? Pay Interest While in School originally appeared on NerdWallet.

How much money should you have in your emergency fund? What percentage of your income should you be saving for retirement?

Financial questions like these can be high-stakes. And reaching the right decision on them can seem complex and difficult, in part because there’s just so much information out there.

If you feel daunted by making financial decisions like these, you’re not alone. Less than half (47%) of Americans feel confident in their ability to make good financial decisions, according to a recent NerdWallet survey conducted online by The Harris Poll in July.

Financial confidence grows with age and wealth

People’s confidence in their financial decision-making increases with their age, income and education.

Less than a third (30%) of Gen Zers (ages 18-27) say they are confident in their ability to make good financial decisions. Thirty-nine percent of Millennials (ages 28-43), 47% of Gen Xers (ages 44-59), and 62% of baby boomers (ages 60-78) say they are confident.

Just 38% of Americans with an annual household income of less than $50,000 reported feeling confident in their ability to make good financial decisions. That compares with 49% of those making $75,000-$99,999 and 55% of those making $100,000 and more.

Reliable information is key — and readily available

The first step in making smart financial decisions is knowing where to go to gather reliable information. And you likely already have access to many free or low-cost resources.

Financial institution: Consider starting with your bank or credit union. Many financial institutions offer online and in-person resources to help guide their customers to solid financial decisions. In addition to informational content related to the products they offer — such as checking accounts and certificates of deposit — employees on the other end of customer service phone numbers or in a local bank branch can provide answers to some of the more common and basic banking questions.

Employers: Many companies offer financial planning services to their employees — either through a financial planning service with which they partner or through the company that manages their retirement plan. If you’re uncertain whether your job offers this kind of perk, ask your human resources department.

Online brokerages: If you currently invest, there’s a good chance you can access educational materials and possibly even advisors through your brokerage. They can help with topics such as how to invest, how much to invest and how to help ensure you’re on track for retirement.

Nonprofit foundations or trade associations: Some financial advisors offer their services for free or at a reduced rate to people who might not otherwise be able to afford them. The Financial Planning Association is one example of a trade organization that offers pro bono financial planning services. Local community organizations and even public libraries may host financial education events, too.

Phone apps: There are also many free or low-cost apps you can use for tasks such as creating and sticking to a budget, checking your credit score and understanding what it means, and analyzing your credit card usage.

Joe Yerardi writes for NerdWallet. Email: jyerardi@nerdwallet.com.

The article Lacking Confidence in Your Financial Decisions? Where to Find Help originally appeared on NerdWallet.

Life is full of life-changing moments. Moving to a different city, starting a new job, becoming a first-time parent (or grandparent). But it’s also full of uncertainty — and how long we have left to enjoy life’s many milestones is one of those uncertainties.

That’s where life insurance comes in. The payout from a policy can help ease the financial burden on loved ones when the inevitable happens. And contrary to popular belief, life insurance is probably not as expensive as you think, especially if you’re young and healthy. For a 40-year-old in the market for a 20-year, $500,000 term life policy, the average cost of life insurance is just $26 a month, according to Covr Financial Technologies, a life insurance brokerage.

While having life insurance is important when anyone depends on you financially, that need becomes magnified during pivotal moments in life. If you experience any of these milestones, it may be time to evaluate your life insurance needs.

Getting married

When two people commit to each other, they often share finances and future ambitions, too. But if one spouse dies unexpectedly, that person’s loss of income and other household contributions can leave a sizable gap for the other to fill.

Life insurance can help a surviving spouse maintain their lifestyle while they’re grieving and beyond, says Lemar Williams, a certified financial planner and president of Traditions Wealth & Legacy Planning. This is true even if the spouse who’s died is not the primary earner.

For example, a stay-at-home spouse might not bring home a paycheck, but they might perform valuable household duties, such as caring for kids, cleaning the house and maintaining the yard. Life insurance can help a working spouse cover these costs if their partner passes during prime working years.

Welcoming kids

Raising kids isn’t cheap. The estimated cost of raising a child born in 2015 through age 17 is $233,610 for a middle-income family, according to the latest data from the United States Department of Agriculture. In 2024 dollars, that equates to roughly $310,303. On top of these higher costs, more young adults are choosing to live with their parents longer than previous generations.

For many parents, life insurance can provide a financial safety net for their children if they die unexpectedly. Permanent life insurance can also offer lifetime financial support for a child with a disability.

Buying a home or going to school

As you move through life, you collect memories — and, in some cases, debt. Life insurance can provide the means for a loved one to continue making payments for a shared debt when you’re gone, like a home mortgage, home equity loan, or private student loan.

Starting a new job

Joining a different company? If you had group life insurance from your previous job, this type of coverage typically isn’t portable, so it’s worth looking into buying a policy on your own.

Other times, a new job means getting a pay raise. That bump in pay might translate to a bump in your standard of living, and life insurance can help your loved ones maintain their new standard of living in the event you die early.

Creating a business

Being your own boss can be rewarding. But it can also put your family, business partners and employees in a tough spot if you pass unexpectedly.

Business owners are often so focused on growing their business that they forget about the risk of something happening to them, says Williams. Life insurance for small business owners can provide the resources a surviving family member or business partner may need to keep the lights on, find a buyer, pay outstanding business loans and more.

Becoming the primary caregiver for an aging family member

Life expectancy in the U.S. is now 78 years, according to the Centers for Disease Control and Prevention. If a parent, in-law or other family member doesn’t have enough money to get themselves through their golden years, you may have to step in to help — physically and financially — says Daniel Adams, a certified financial planner and president of CEG Life Insurance Services.

If you pass away, that could leave your family member struggling to find care. Life insurance can help pay long-term care costs or other medical and everyday expenses, Adams says.

How much life insurance should you get?

Many companies offer term life insurance policies with death benefits starting at $100,000 and potentially reaching into the millions.

A good starting point for finding the right amount of coverage for you is to think of everything you pay for now and can expect to pay for in the future, like a mortgage or college tuition. Then, subtract your savings and the value of assets you currently own. The dollar figure you’re left with is where life insurance can help with your family’s financial obligations when you’re gone.

Williams recommends working with a certified financial planner or chartered life underwriter if you need more guidance. You can also use NerdWallet’s life insurance calculator to estimate how much coverage you might need.

Ryan Brady writes for NerdWallet. Email: rbrady@nerdwallet.com. Twitter: @reallyryanbrady.

The article 6 Milestones and How They Might Change Your Life Insurance Needs originally appeared on NerdWallet.

About 43 million Americans hold federal student loan debt and, for some, paying off that debt can be a burden. Many borrowers have access to programs that can pause or reduce their payments, but a new survey finds some borrowers may be forgoing the proper channels and stopping repayment entirely in hopes of student loan forgiveness.

Nearly one in three (31%) student loan borrowers have slowed the repayment of their loan(s) because they hope to see their loans reduced or forgiven by the federal government, according to a recent NerdWallet survey conducted online by The Harris Poll among more than 600 U.S. adults who currently have student loans. And nearly one in four (23%) have stopped their student loan payments altogether for the same reason.

Notably, the survey didn’t ask whether borrowers who slowed or stopped their repayments did so after entering into forbearance or deferment plans. Further, student loan delinquencies have remained largely unchanged since the COVID-19 payment pause ended last October, according to data from the New York Fed. This is likely due to a one-year “on-ramp” grace period set to expire Sept. 30, during which the Department of Education is not reporting any borrowers who miss payments as delinquent.

A worry for borrowers, and a top election issue

Despite the Supreme Court blocking the Biden Administration’s broad plan to cut up to $20,000 in student loan debt per eligible borrower last June, the White House has forgiven roughly $168.5 billion over the last four years, largely through existing forgiveness programs like Public Service Loan Forgiveness and income-driven repayment plans. The president’s current “plan B” student loan forgiveness plan would reduce or eliminate loan debt for a more targeted group of individuals.

There’s no guarantee this plan or anything resembling it will go into effect. Just as legal challenges derailed the administration’s first, broader push for debt relief, lawsuits could force the administration or its successor to further scale back this set of proposals. This fall’s elections could also determine how debt relief proceeds — if at all.

Borrowers seem to have taken note.

A quarter (25%) say they are concerned recent student loan forgiveness efforts will be reversed by the courts. And more than one in five (22%) say that student loan forgiveness is one of the most important issues when choosing a presidential candidate.

Not paying student loans can hurt you

There are consequences if you fail to keep up with your student loan payments.

If you have federal student loans, loans become delinquent as soon as you miss a payment. Loan servicers can begin charging late fees 30 days after that. After three months, servicers may begin reporting the debt to credit reporting agencies, dragging down your credit score. Eventually, student loans enter default and your loan holder will be able to garnish your wages and withhold tax refunds and Social Security payments from you.

The default process happens even faster for student loans held by private lenders.

Pick the repayment plan that’s right for you

While the repercussions of not paying student loans can be serious, the good news is you have several repayment options for federal student loans. (Private student loan repayment options vary by lender.) Use the Education Department’s loan simulator to estimate your monthly bills and overall repayment journey under different repayment plans.

Standard repayment: Under this plan, you’ll pay the same amount each month for a decade. This is generally the fastest way to pay loans off, and therefore you may pay less total interest. You’re placed into this plan by default when repayment begins.

Income-driven repayment: If payments under standard repayment seem too high, you can apply for income-driven repayment (IDR). Under IDR plans, you’ll pay a portion (usually 10-20%) of your discretionary income each month for a set period of time (usually 20-25 years), after which your remaining debt will be forgiven.

Graduated payment: Consider the graduated payment plan if an IDR plan isn’t a good fit, but you want to lower your monthly bill right now. Under this 10-year plan, your payment will start low and increase every two years. The advantage is you’ll be able to free up money in the short term for other needs. The downside is you may end up paying more in interest than under the standard repayment plan.

Extended repayment: If you owe more than $30,000 in loans, you can apply for the extended repayment plan. This plan gives you up to 25 years to repay your loans and you can choose to pay the same amount each month or a gradually increasing amount as under the graduated plan.

Borrowers seem to be taking advantage of these options, as a third (33%) say they’ve changed their student loan repayment plan in order to make their payments more manageable, according to the recent survey.

Before defaulting on your loans, consider deferment, forbearance or an IDR plan

If you simply can’t afford to make any student loan payments right now, you still have options: namely, deferment and forbearance. More than a quarter (27%) of student loan borrowers have used one or both of these programs to pause their federal loan payments, according to the survey.

Both pause your payments and protect your credit from taking the hit it otherwise would if you simply stopped making payments. But the similarities end there.

First, look into deferment. Under deferment, interest does not accrue on your subsidized federal student or Perkins loans while payments are paused (interest will continue to accrue on unsubsidized federal or private student loans).

You must meet a qualifying life event in order to qualify for deferment. Qualifying events include attending school at least half time, being active duty military or in the Peace Corps, experiencing unemployment or earning less than 150% of your state’s poverty guidelines, receiving some forms of public assistance or undergoing cancer treatment.

If you don’t qualify for deferment, consider forbearance. Under forbearance, interest will continue to accrue on your loans (whether federal student loans or private loans) while repayment is paused, and you’ll be limited to a 12-month break from payments.

An income-driven repayment plan can also help you manage payments. If you’ve lost your income, or you earn under a certain threshold, you may qualify for $0 payments under an IDR plan — and you’ll still make progress towards IDR forgiveness while making these $0 payments. Even if you don’t qualify for $0 payments, IDR plans can lower your bills to a more manageable level.

The complete survey methodology is available in the original article, published at NerdWallet.

Joe Yerardi writes for NerdWallet. Email: jyerardi@nerdwallet.com.

The article Student Loans: 1 in 3 Borrowers Have Slowed Repayment originally appeared on NerdWallet.