FINANCE
HARD CASH for THOSE OLD GADGETS
TO DEBT OR TO SAVE?
NO MONEY IN THE BANK, TOO MUCH DEBT ON CREDIT CARDS: T at’s the situation many Americans fi nd themselves in, day in and day out. But what’s better—getting rid of that monthly burden or putting a little aside? Here are some numbers to consider.
73 MILLION
SMARTPHONES, TABLETS, LAPTOPS, COMPUTERS: The average American household has a lot of them—fi ve, according to some estimates. That translates into an estimated $170-plus a person in unused or old devices gathering dust. Before you recycle those devices (and get nothing for your trouble), check out these earn-a- little options:
1 GET STORE CREDIT OR A GIFT
CARD. Some stores or websites determine a value for your device and give you store credit or a gift card in the amount. You have to describe the device’s condition, detail any accessories (such as plug-ins), answer some questions and turn in the device.
TIP: Review several sites and stores to compare value and fi nd a merchant that pays for your shipping the device. Check on any fees too—you might trade a little charge for an increase in payback value.
2 GET SOME CASH. Some sites reimburse you instead of tying payment to a store.
TIP: Verify payment turnaround time once the site receives the device. Also fi nd out what happens if the site determines your product is worth less than originally determined.
REMEMBER … BEFORE YOU TURN IN THE DEVICE, DELETE YOUR PERSONAL DATA AND RESTORE THE DEVICE TO ITS FACTORY SETTINGS.
2 goodneighbor® 650
American adults with NO SAVINGS
$7,400
Average household credit card debt
AVERAGE CREDIT SCORE to qualify for a conventional
mortgage. MORE DEBT TYPICALLY LOWERS YOUR CREDIT SCORE; debt may make up about 30% OF YOUR TOTAL SCORE.
20% $1,368 Total
repayment on a $1,000 CREDIT card bill at 15% if making the MINIMUM 65 MONTHLY PAYMENTS OF 4%
15%
AVERAGE CREDIT CARD INTEREST RATE. It’s a good barometer to use in choosing between debt and savings: If you can SNAG A 0% INTEREST RATE for a few months, stash the extra away for an emergency fund. If not, PAY OFF YOUR HIGHEST-INTEREST- RATE BILLS FIRST.
In general, the down payment you must make to AVOID PRIVATE MORTGAGE INSURANCE, which may cost several hundred dollars a month
6 MONTHS
The fi nancial cushion most experts recommend—
SAVE 6 MONTHS’ WORTH OF SALARY for an EMERGENCY FUND
$35,000
Average student loan debt of the class of 2015
26%
Percentage of all consumer debt
that is revolving— typically from credit cards
Sources: US News & World Report,
Creditcards.com,
Moneycrashers.com, NeighborWorks America, Federal Reserve
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