Most people who received forbearance on their mortgages or other debt accommodations like rent and student loan moratoriums have resumed or will soon resume scheduled payments as these government relief programs expire. How those households will fare when they have to come up with the funds to make payments is unclear, the Treasury’s Office of Financial Research, which regularly assesses threats to financial stability, said in its annual report to Congress on Wednesday....

GNP doesn’t count any income earned in the United States by foreign residents or businesses and excludes products manufactured in the United States by overseas firms. GNP Formula The formula to calculate the components of GNP is Y = C + I + G + X + Z. That stands for GNP = Consumption + Investment + Government + X (net exports) + Z (net income earned by domestic residents from overseas investments minus net income earned by foreign residents from domestic investments)....

These expenses include management fees, distribution fees, and other operating expenses. When viewed as a percentage of the funds’ assets, these operating fees are called the expense ratio. What’s the Difference Between Gross Expense Ratios and Net Expense Ratios? Management fees: These fees are paid to the fund’s investment advisor for analyzing, buying, and selling the securities for the fund’s portfolio on behalf of the investors. Distribution fees: These fees, also known as 12b-1 fees, are incurred to market and sell shares of the fund....

Knowing how a guaranteed insurability rider works and who will be best served by such a rider can help you decide if you need to purchase one for your own life insurance needs. What Is a Guaranteed Insurability Rider? Life insurance is an important tool for financially protecting your family, as it pays out a death benefit when you die. But life insurance generally requires proof of insurability, since individuals with terminal illnesses or risky habits can cost insurers more in death benefits than they pay in premiums....

What a Hired Auto Is Most commercial auto policies contain the same definition of hired autos found in the standard ISO auto policy. This term is defined as any autos you lease, hire, rent or borrow. “You” means the named insured. Thus, a vehicle qualifies as a hired auto only if it is leased, hired, rented or borrowed by the person or entity listed in the policy declarations. A vehicle leased, hired or borrowed by someone other than the named insured is not a hired auto....

While HOA payments can add a large amount to your housing expenses, you may not realize this when you figure out how much your monthly mortgage payments will be. Before you commit to buying a property that’s part of an HOA, get to know where your money goes and what to expect with your HOA dues. HOA Overview An HOA is a group of homeowners in the same neighborhood or building who share costs, set rules, and manage common areas together....

Making a lump-sum payment always saves you money on interest. And depending on how you handle it, the payment will either shorten the time it takes to pay off your mortgage or reduce your monthly payment amount. What Happens When You Make a Lump-Sum Payment When you make a lump-sum payment on your mortgage, your lender usually applies it to your principal. In other words, your mortgage balance will go down, but your payment amount and due dates won’t change....

These terms are used to describe the relative strength of the dollar against other foreign currencies at any given time. Where the dollar falls on this scale can have a direct influence on your purchasing power and how far your budget can stretch. It’s important to know what a weak dollar could mean for the economy at large—and on a smaller scale, your individual financial plan. What Is a Weak Dollar?...

With that said, it’s important to have the information you need to make sure your taxes are calculated correctly. You’ll also want to consider tax-planning techniques you can use to try to minimize the taxes you pay on bitcoin. The IRS and Cryptocurrency The IRS treats cryptocurrency—like bitcoin—as a capital asset. It has indicated that virtual currency doesn’t have status as legal tender in any jurisdiction. It’s referred to as “convertible” virtual currency if it has an equivalent value in real currency, or if it ever serves in place of real currency....

Whenever you apply for a loan or line of credit, lenders want to know what the chances are that you’ll repay the money. To help them figure that out, they look at your history of borrowing: Have you borrowed money in the past, and did you repay those loans? Credit bureaus have the information that lenders use to make those decisions. What Credit Bureaus Do Credit bureaus function as databases of information about you....

Credit Score Basics Credit scores are designed to make decisions easier for lenders. Banks and credit unions want to know how much of a risk you might be to default on your loan, so they look at your borrowing history for clues. For example, they want to know if you have borrowed money before and successfully repaid loans or if you recently have stopped making payments on several loans. Instead of spending 20 minutes digging through credit reports for each loan applicant, looking at a score gives lenders a quick and general idea of the applicant’s creditworthiness....

The amount of debt you have is one of the biggest factors that go into your credit score; your level of debt is 30% of your credit score. The credit scoring calculation considers your credit utilization—the ratio between your credit card balance and your credit limit—for each of your credit cards and your overall credit utilization. The higher your credit card balances are, relative to your credit limit, the more it hurts your credit score....

Sincerely, Rachelle Dear Rachelle, If only we could take out a loan and avoid paying interest! Unfortunately, interest is how the lender makes money, so there really is no way to avoid paying interest on your student loan completely. I’m not sure when you took out your loan, but with student loan interest rates from the government as high as 6.54% for unsubsidized loans, it makes sense that you want to avoid paying it altogether....

Sincerely, Frustrated in Florida Dear Frustrated, This is a great question, but a hard one to answer. Because honestly, there is no right or wrong way to quickly determine if you’re getting bad money advice. If there was, we probably wouldn’t have so much misinformation out there! But I do have some tips to help you sort through the good, the bad, and the ugly in the world of financial advice....

Think About an IRA An IRA is a great option if your employer doesn’t offer retirement benefits. You can set one up with most brokerages and with some banks, choosing the type of investments you want to make. A financial adviser can help you decide on the best options for you. The savings limit for IRAs for tax year 2022 is $6,000 annually, increasing to $6,500 in 2023. It goes up to $7,000 and $7,500 respectively for those who are age 50 and older....

The change in the value of your home will depend on the type of property appraisal method that is used when two separate homes are compared. The changing value of your home can also be dependent on the neighborhood or area itself. Having a Foreclosure Neighbor For the most part, foreclosure homes vary in appearance. Some foreclosure sales are handled quietly and resold quickly by the lender. One day a moving van pulls up, loads the occupant’s belongings, and departs....

Reverse mortgages can be an excellent financial tool for older homeowners, but they come with some unique characteristics and features. Learn more about these loans, including how interest rates will affect your reverse mortgage. How Reverse Mortgage Lenders Calculate Interest Rates Like other forms of financing, reverse mortgage lenders charge interest on these loans, which is rolled into the cost of the loan and repaid with the principal loan balance....

How Late Can You Make a Payment and Avoid a Late Fee To avoid paying a late fee, you need to make your credit card payment by a certain time on the due date. You can pay your credit card bill as late as 5 p.m. on your due date if your credit card issuer allows expedited payments. Your credit card issuers may extend the cutoff time past 5 p.m., but you should confirm before waiting that long to make your payment on the due date....

energyy / Getyy Images How Long Do You Have to Report a Car Accident? Following a crash, you should contact your insurance company as soon as possible. Some insurers suggest contacting them from the scene of the collision. That’s not always possible, especially if the accident causes injuries. However, it’s best to contact your insurer as quickly as is practical, while the details are fresh in your memory. In some cases, insurance providers impose time limits on reporting accidents, so ask your agent or check your policy for details....

If you held the investment for less than a year, your short-term gain will be taxed at ordinary income tax rates. If you sold the asset after holding on to it for more than a year, you would be taxed a long-term capital gains tax based on your income. For 2022, long-term capital gains tax rate varies between 0% for individuals earning up to $41,675 ($44,625 for 2023) and 20% for single filers making more than $459,750 ($492,300 for 2023)....