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HOW TO CALCULATE THE MONTHLY APR 

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We explain how the increase in interest rates from the Federal Reserve affects you if you accumulate credit card debt and what to do to minimize the impact. 

It impacts from mortgages to loans for the purchase of cars.

As planned, the Federal Reserve raised interest rates for the first time since December 2021, this amid soaring inflation coupled with gasoline prices and the economic fallout from the war between Russia and Ukraine. 

The central bank reported Wednesday that the fed funds rate now stands at 0.25-0.5%. 

Credit card holders will now find it more difficult to pay off large debt, so you must understand how the Annual Percentage Rate (APR) is calculated and how it is applied to outstanding balances, to maintain the most control. possible on the growth of the debt. 

That information could help you make decisions about which credit cards you can afford and how much it costs you each day to borrow from your credit card company. The monthly APR can also help you understand how much it costs you to carry a balance each month that you’re not paying in full.

THE THREE TYPES OF APR 

The APR is calculated and determined by your credit card company. The three main types of APRs are fixed rate, variable rate, and promotional rate. 

With fixed rates, your APR is likely to remain unchanged for as long as you have your card, unless otherwise noted. In this case, the increase in the interest rate of the Federal Reserve could affect you. 

Variable rates may increase or decrease based on federal rates. 

Promotional rates include zero-interest or low-interest periods offered as incentives by companies to new account holders. 

You can determine what fees are associated with your credit card by reviewing the agreement with your credit card company, as well as your monthly statements. 

HOW TO CALCULATE THE MONTHLY APR 

It can be done in three easy steps:

  1. Check the current APR credit card and your balance on your statement. You can call your bank if you don’t have that information. 
  2. Divide your current APR by 12 (for all twelve months of the year) to find your monthly periodic rate.
  3. Multiply that number by the amount of your current balance.

Let’s say you owe $500 on your credit card for the entire month and your current APR is 17.99%. You can then calculate your monthly interest rate by dividing 17.99% by 12, which is approximately 1.49%. Then multiply $500 x 0.0149 to get an amount of $7.45 each month. Therefore, your bank would charge you $7.45 in interest charges based on your $500 balance.

HOW TO CALCULATE THE DAILY APR 

As in the previous case, you can do it in three steps:

  1. Check the current APR and your balance on your credit card statement. You can call your bank if you don’t have that information.
  2. Divide the APR rate by 365 (for all 365 days of the year) to find the daily periodic rate.
  3. Multiply your current balance by your daily periodic rate.

For example, if your current balance is $500 for the entire month and your APR is 17.99%, then you would need to divide your current APR by 365. In this case, your daily APR would be approximately 0.0492%. By multiplying $500 by 0.00049, you will find that your daily periodic rate is $0.25. To calculate the monthly interest charges on your balance, you simply need to multiply this daily periodic rate by the number of days in your billing cycle. For most credit cards, the average billing cycle is 30 days.

These numbers can help you calculate the payments you need to make each month to minimize the impact of daily compounding.

WHY DO I NEED TO KNOW THE DAILY AND MONTHLY APR?

Your credit card balance can fluctuate daily, weekly and monthly. By calculating your daily and monthly APR, you can better understand how much of your money is going to interest. This is why credit card holders have the feeling that they pay the minimum without this meaning that they advance enough to cover the total debt.

Having a clear understanding of how much of your money is going toward interest rather than paying off the debt in full can help you formulate a payment plan, as well as help you decide what really necessary purchases you can make with your credit card without affecting your finances. 

By breaking down interest rates on a daily and monthly basis, you can learn more about the interest you’re accruing over time and use this information to make better financial decisions.

WHAT DOES THE FEDERAL RESERVE DECISION MEAN AND HOW DOES IT AFFECT ME IF I HAVE CREDIT CARD DEBT?

Economic instability and unemployment in the wake of the pandemic led millions of Americans into credit card debt, but paying off balances would be much harder going forward.

As the federal funds rate rises, so do credit card interest rates. It may be an indirect connection, since the fed funds rate only directly affects loans between banks, but this in turn affects the banks’ costs, which in turn are passed on to consumers. 

The prime rate that is the basis for all loan rates for bank customers is derived from the fed funds rate. Premiums are aggregated based on applicant creditworthiness and institutional factors. This produces effective interest rates, like credit card annual percentage rates.

Once the Fed action takes effect, credit card APRs will adjust almost immediately, typically within one or two billing cycles.

Total US household debt reached $15.8 trillion in the fourth quarter of 2021, the New York Federal Reserve recently reported. , up $333 billion from the previous quarter. Credit card balances alone reached $860 billion, an increase of $52 billion over the same period. That’s the largest quarterly increase the Federal Reserve has seen in the 22 years it has been collecting data, the researchers say. According to the report, the increase in debt was generally driven by home and car purchases.

The recent acceleration in debt is likely due to the fastest inflation in decades, according to the Federal Reserve. Americans used pandemic-era government aid to pay off their debts, meaning they had credit available to use for new purchases.

With the rate increasing by at least a quarter percentage point, the average APR on new cards could jump as high as 16.38% this spring, depending on how banks respond to higher base rates.

But if the Federal Reserve raises rates at least four times over the next year, as some analysts predict, the average APR on new cards could end 2022 at 17.13% or more. However, it is still uncertain. 

HOW LONG WOULD IT TAKE TO PAY OFF MY DEBT WITH THE PROBABLE INCREASES IF YOU MADE THE MINIMUM PAYMENT EVERY MONTH?

If you pay your credit card bill in full every month, you don’t have to worry. But if you carry a balance on that card, carrying it month to month will cost you more once rates go up.

Suppose you have a debt of $3,500. The current average credit card interest rate is 16.13%, according to CreditCards.com . If you only make a minimum payment of $50, it would take 17 years and 8 months to pay off your balance, and you would pay a total of $7,093 in interest.

But with a higher interest rate, such as 16.38%, which could result in March, it would take 19 years and 2 months to pay off your balance, paying a total of $7,978 in interest.

Now, let’s assume that the worst case scenario occurs and the interest rate hits 17.13%. In that case, it will take 42 years and 4 months to pay off your balance, and you will pay a total of $21,895 in interest.

WHY ARE CREDIT CARD RATES AFFECTED BY THE FEDERAL RESERVE DECISION?

Most credit cards are tied to the US prime rate, which is directly influenced by the Federal Reserve’s benchmark interest rate, the fed funds rate. When the fed funds rate changes, the prime rate generally changes by the same amount.

Lenders are free to set APRs on new cards as they wish, and are technically not required to change APRs when a card’s base rate changes. On the other hand, lenders are required to match changes in the prime rate on open credit card accounts that are contractually bound. 

That’s what happened in the spring of 2020. After the Federal Reserve cut rates by a point and a half in March 2020 in response to the economic meltdown in the wake of the coronavirus pandemic, almost all lenders cut APRs as well. of new cards except Capital One, according to CreditCards.com. 

Since then, most of the new cards included in the weekly rate report have continued to advertise the same APRs they had in spring 2020. As a result, the card’s national average APR has barely budged for over a year, remaining at 16% since April 2020.

But if the Federal Reserve raises its benchmark interest rate this year, as projected, most credit card offerings are likely to follow suit. Existing credit card holders will also see their rates go up, making their debt much more expensive to maintain.

WHAT DO I DO TO PAY OFF DEBT FASTER, OR AT LEAST REDUCE IT?

According to an Experian analysis , the average credit card holder reduced their card balance by nearly $400 in 2021 compared to 2020. 

But millions of Americans have failed to reach that milestone. 

One option may be balance transfer credit cards, if you have a good credit score. These cards allow you to transfer a balance from another card, as long as it is from a different bank, and pay it without interest for a certain period, generally between 12 and 18 months. Some cards offer up to 21 months.

However, most cards charge a balance transfer fee, typically 3% of the amount transferred, although some cards charge no fees. 

You can use Bankrate’s calculator to estimate how long it will take to pay off that balance based on how much you could afford to pay each month, but keep in mind that once the promotional period ends, the card’s regular APR kicks in and you’ll start paying interest. on any remaining balance. 

On the other hand, the average American consumer has about three credit cards, so there’s a chance that your credit card debt will be spread out over multiple balances. There are two popular methods for paying off multiple balances: the snowball method and the avalanche method.

The snowball method suggests starting by paying off your smallest debt first, regardless of its interest rate, and work your way up to paying off the debt with the highest balance. Proponents of this method argue that this strategy allows the consumer to create a snowball effect or momentum that encourages them to pay off multiple debts.

The avalanche method, on the other hand, proposes that the consumer start with the debt with the highest interest rate. Once that high-interest balance is paid off, you can move on to the balance with the next higher interest rate, and so on.

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Business and Real Estate

What are Micro-Credentials & what are their Benefits?

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Micro-Credentials

With rapid changes and development in technology, the current job structure has completely transformed. Many new job roles are emerging and becoming immensely vital for the organization. There is also a need for acquiring newer skill sets which means that the workforce has to gain new expertise to be able to flourish in the modern workforce. 

Micro-credentials become extremely important in this scenario as they are the best tool for upskilling. They are a feasible means of acquiring competencies that allow one to carry out job responsibilities effectively. 

Understanding micro-credentials 

Micro-credentials are mini qualification that allow an individual to gain knowledge or expertise in a given area or domain. The skills that these nano degrees provide are very narrow and limited to particular expertise. Unlike diplomas or degrees that take several years to complete, micro-credentials imbibe all the necessary knowledge in a short time frame. 

The expertise that you gain from these mini qualifications is immediately applicable to your job role. You can acquire a micro-credential in various fields ranging from social media marketing to even business communications. 

These nano degrees are offered as digital badges which are given after you have successfully acquired a skill. Along with universities and colleges, you can also get these badges at work through practical job training.  

Need of the hour 

The business landscape has shifted drastically after the pandemic as every industry has adopted newer technological tools. This has greatly impacted job roles as responsibilities have upgraded. Revamping of work culture and the introduction of modern tools including the digitalization of every sector has left vast room for upskilling. 

For example, the traditional form of marketing which was once the norm has now been replaced by digital marketing. Those part of the workforce who lost their job due to all these changes or are looking to adapt to the new work tactics can gain a lot from a micro-credential. 

Also, the millennials and Gen Zs are keener to acquire skills that are directly applicable to the workplace and benefit a lot from such digital badges. There are many benefits that micro-credentials have which makes them immensely popular and useful in the current times 

Benefit of microcredentials

Some of the main advantages that micro-credentials have are the following:

  • Practical skill-building 

In the age of micro content and bite-sized videos, everyone is looking for easier ways to gain new skills. Gaining any expertise is only useful if it is applicable to one’s current job role or can help them switch to something better. 

Obtaining a micro-credential has an edge over other qualifications here as it imbibes necessary training that can be immediately applied to one’s work. It also allows you to illustrate to your employers that you have the necessary practical knowledge needed for the job profile. Those who are looking to become technologically competent can make great use of this mini qualification as well. They can easily learn how to navigate through the digital landscape in a short time. 

  • Feasible to learn 

Talking of learning in a short time, not everyone can afford to go back to college or university to continually upskill. From a practical point of view, it makes no sense as it becomes a time-consuming and expensive way of learning. 

On the other hand, micro-credentials can be acquired in a smaller time frame without burning a hole in your pocket. 

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Business and Real Estate

Why is data analytics critical for small businesses?

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data analytics

Data analytics can exponentially change the way small businesses promote their products and engage with clients and customers. It is important to note that data analytics on its won’t do much for your organization. However, the right technology holds the potential to systematically extracts data from various sources to find patterns, trends, and correlations in the available data. Using data analytics tools requires a professional to have the skills and competency to work with complex tools efficiently. The best way to gain in-demand skills and knowledge of data analytics is by undergoing formal data analytics programs.

A well-designed data analytics program can help you learn to analyze data using cutting-edge technologies or derive proactive decision-making through traditional methods. The proper use of data can facilitate decision-making for small businesses that can help them optimize their business performance. As a small business owner or employee in a small business, you can learn data analysis and hone the ability to interpret and transform data into actionable insight to increase business efficiencies.

This article will enlighten you on why data analytics is critical for small businesses.

Businesses, both small and big, operate and generate large volumes of data that can be analyzed into insightful information. Big data is everywhere, from the Netflix shows to social media browsing. Surprisingly, data analytics can also benefit small businesses.

Well, nearly 61% of businesses and companies drive revenue through data analytics because it delivers deep insight into customer behavior, which helps businesses find out consumers’ wants and expectations of a product or service. Using the best data analytics tools to offer deeper insights into your business operations can only happen when you have skilled and qualified data analytics professionals.

Here’s why data analytics is critical for small businesses:

A proactive approach to your small business

Being active in running a small business is easy, but a proactive approach is better and potentially more profitable. Analyzing the existing data empowers businesses to move from mere reaction to anticipating their customer’s needs, increasing customer satisfaction. Small businesses can also use past data to push new product recommendations and services to their existing customers through data analytics. A proactive approach offers many rewarding benefits, including lowering costs, building brands, harnessing existing relationships, and growing profit over time.

Improve scope of future products

Even successful businesses cannot wholly rely on their past successes. Data analytics can offer you insightful suggestions to improve your existing product while designing new products that align with your customer needs. It also increases the scope of uncovering hidden issues with current products and provides clues for further improvements.

For an effective online presence

Whether your small business operates in the real world or cyberspace, a strong online presence can be a boon for your business. Allocating online resources is not an easy task, and many small business owners struggle to establish their brands online. Hence, by harnessing the power of data analytics, small businesses can gain insights into all aspects of their online presence.

Wrapping Up

Data analytics can help small businesses change how they promote their goods and services. It provides actionable insights into user behavior and assists small businesses in cutting costs, driving revenue, and providing a one-of-a-kind customer experience that will establish excellent customer relationships. So, what are you waiting for? Take the next step and learn data analytics through a well-designed program!

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Business and Real Estate

Home Insurance Shopping Tips 

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Home Insurance Shopping Tips

In partnership with CitizensInsurance.net, the leading insurance service online, Citizensinsuranceflorida.com helps you connect with vital home insurance information so you can make an informed choice—the right choice.

In that light, we’d like to help equip you with the tools you need for insurance shopping success. Try these helpful tips to find what you need at maximum savings:

1. Get informed! Seek out information from your local library, state insurance department, or favorite consumer publication.

2. Comparison shop. Find out what several insurers charge for the same type of policy.

3. Give each insurer the same information. This will avoid confusion and ensure accurate quotes.

4. Check all insurer licenses. Insurers must be licensed by the state in order to sell insurance.

Take Advantage of the Competition

At Citizensinsurance.net, we know how hard it is to find affordable homeowner’s insurance.

Let us go to bat and find you a home insurance policy you can afford! By providing a little information in our quote box, we’ll reward you with up to five accurate quotes from top providers.

Take advantage of the competition by making insurers compete for your business—simultaneously. Contact Citizensinsurance.net today, where cheap homeowner’s insurance is just a click away!

Insurance website has strived to bring customers the lowest possible home insurance rates. Compare homeowners insurance rates and save money; that’s what customers can expect from our partner Citizesninsuranceflorida.com. Our commitment to you and your family is to provide an effective way to compare shop for home insurance quotes, auto insurance quotes, and other types.

With our free service, over 100 of the nation’s leading homeowner’s insurance companies compete for your business through our insurance agency network, ensuring you get the most competitive pricing available. Whether you are looking for a free Auto Insurance quote, Health Insurance, Home Insurance, Renters Insurance, Life Insurance, or www.term-Life-Insurance.com, we have you covered.

Get the lowest home insurance online!

No need for you to wonder if you’re overpaying for home insurance. It’s really that easy. Simply enter your zip code and hit the go button using our secure connection, and in less than a minute, you’ll receive homeowners’ insurance quotes from many of the top companies you’ve come to know and trust.

Home Insurance Savings

Many things besides brick and mortar make your home your castle. Secure your investment and your life today with insurance protection from Citizensinsurance.net.

Cheap Home Insurance Quotes

When you trust us with your home insurance needs, you’ll discover it’s all about you.

We work with leading insurers to help save you time and money on home insurance. And you get fast, free, affordable quotes by phone or email—whichever works best for you.

Insurance Shopping Made Easy

Whether you need home insurance only or a combination of policies, we have just what you’re looking for. Choose Citizensinsurance.net today for all your insurance needs. We’ll give you the power to choose—and you’ll keep control over your home and finances!

Florida homeowners insurance aims to furnish protection for one of your most significant financial assets because losing your home and personal possessions would be devastating. While not required by law, as is the case with automobile insurance, most mortgage companies require you to have insurance on your home to safeguard their interests in your property.

Florida homeowners’ insurance provides financial protection against disasters. A standard homeowner’s policy will insure both your home itself and your possessions from a number of events, including fire, storms, and theft. 

It also covers your legal responsibility or liability for injuries and property damage that you and your family members cause to other people, more often than not, including damage caused by pets. Damage caused by several natural disasters is also covered, although here there are exceptions, the most important of which are damage resulting from floods and earthquakes. To cover these, you will usually need to have additional flood and earthquake coverage. Damage arising out of certain events, such as war, is not covered.

A Complex Subject

Like many things nowadays, homeowners’ insurance is a complex subject. Obtaining the right policy to suit your own individual circumstances and budget can be challenging unless you know just what you are doing. For example, the list of factors that are considered when an insurance company considers how much to charge for cover is exceedingly long, and your premium can be large. All The Same, there are many things that you can do to lower the cost of cover considerably if you know what you are doing or take advice from an independent expert in the field of homeowners insurance.

We work with a team of experts whose job is simply to study the marketplace so that they are in a position to get you the very best cover, whatever your circumstances and requirements. Thus, if you are seeking Florida homeowners’ insurance, then why not take a moment to complete the simple request form above and give us a try. You will not be disappointed!

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