Here's a 9-step guide to calculating your credit card interest - We Are The Mighty
MIGHTY MONEY

Here’s a 9-step guide to calculating your credit card interest

When it comes to credit cards, understanding your interest rate and how it works can be the difference between staying out of debt with an excellent credit score and falling behind in your payments and dipping to sub-par credit score ratings.

Your interest rate is the amount your credit card charges you to borrow money. If you pay your credit card balance in full and on time, you generally don’t need to worry much about your interest rate, which is expressed as an annual percentage rate (APR).

But if you’re carrying a balance on your credit card, you’ll notice you owe more over time, and that’s because of the interest rate. Credit cards are notorious for being one of the most expensive types of consumer debt, with an average interest rate of about 17%.


While in most cases you probably don’t need to calculate your credit card card interest rate — your statements should clearly reflect how much interest is owed on any unpaid balance and your APR should be clear on your statement and your bank’s website — you may want to get an idea of how much your balance is costing you on a day-to-day basis.

Here’s a 9-step guide to calculating your credit card interest

Here’s a quick cheat sheet to help you when it comes to calculating your own credit card interest rate.

1. Pull up your credit card information

Log on to your financial institution’s website or pull out your latest statement (if you haven’t switched to paperless billing yet, get on that!) to find the pertinent information you’ll need to calculate your credit card interest.

You’ll need to find:

  • your purchase APR
  • the number of days in your billing cycle

2. Get to know the terms

The way your credit card works boils down to a few different terms, two of which include annual percentage rate (APR) and, more generally, your interest rate.

Although APR stands for annual percentage rate, your credit card company uses this percentage number to determine the interest you’ll be charged each month when you don’t pay your credit card off in full and carry a balance.

Keep in mind that your credit card may have different types of APR, like a:

  • purchase APR (usually applied to the overall purchases you make with a card),
  • balance transfer APR (usually applied to any balances transferred from another credit card)
  • introductory APR (usually applied to purchases made during the promotional period after opening a new credit card)

3. Find your purchase APR

In order to calculate the interest you owe on any leftover balances on your credit card, you’ll need to find your purchase APR. If you can’t find this information readily, try calling your bank, or click on your card’s terms and conditions section.

Here’s a 9-step guide to calculating your credit card interest

4. Determine your average daily balance (or balance subject to interest)

This is the aggregate total of what you spent and either paid off and/or were refunded every day throughout your billing cycle, divided by the number of days in your billing cycle.

If you’ve always paid your purchases in full by the due date, you won’t have any interest payments to make and your average daily balance isn’t really a factor. However, if you plan to carry a balance, to calculate your average daily balance when you need to determine interest, log onto your bank account online and track the charges and credits that went through on each individual day, creating a rolling total as you move through the days of your billing cycle.

This will provide you with an aggregate total that you can then divide by the number of days in your billing cycle (which you’ll find in step five).

5. Get the number of days in your billing cycle

Different credit cards have different amounts of time between billing cycles. A typical credit card statement is paid out in 30-day billing cycles.

6. Divide your APR by 365

Since your APR is your annual interest rate, you’ll need to divide your APR by the number of days in the year to get your daily interest rate. So for example, an APR of 13.99% would become: 0.1399/365 = .00038 daily interest.

7. Multiply your daily rate by your average daily balance

Once you know what you’re charged daily for interest, you can multiply that number by your average daily balance to find the daily interest you’ll owe. So for example, if your leftover balance after paying your credit card is id=”listicle-2639175991″,000, you would get: .00038 x id=”listicle-2639175991″,000 = .38.

Here’s a 9-step guide to calculating your credit card interest

8. Multiply your daily interest rate by the number of days in your billing cycle

If you determined that you have a 30-day billing cycle, then the credit card interest you would owe on a balance for the 30-day cycle in this example would be: .38 x 30 days = .50 in interest.

9. Ask about your credit card’s grace period allowance

Some credit cards offer a grace period between when items are purchased and when they absolutely need to be paid off before accruing interest. Check in with your bank to learn if you have a grace period on your accounts and what the exact grace period is in order to better avoid paying interest.

Also read:

This article originally appeared on Business Insider. Follow @BusinessInsider on Twitter.

Articles

Vets First helped this former airman build her spiritual home

“It is neither your title nor your name that defines you, but what is written on your heart.”


Rene Locklear White has held many titles: lieutenant colonel; Air Force veteran; wife; mother; Native American religious leader.

But none of these things define her.

Serving as a space satellite surveillance officer, White says, “I spent 22 years in the Air Force. Proudly. Happily.”

That pride and that happiness are what define her more than anything.

With her husband, Chris “Comeswithclouds” White, White runs Sanctuary on the Trail, a Native American Christian church in the Blue Ridge Mountains of Virginia. The church has five key areas of focus this year, the Spirit Speaks Forum, arts and culture advancement, disaster relief, human rights advocacy, and veteran wellness.

The focus on veteran wellness doesn’t jut apply to spiritual wellness, but to physical wellness. Together, the Whites work with veterans to understand their benefits and to get wounded warrior care for themselves and their families.

Comeswithclouds built their house with his son, Jacob, and the home is a beautiful reflection of who they are.

“We can honor nature and be a part of it, all the time,” White said. “The house is built, but now we’re.. building the community,” Comeswithclouds noted.

Currently, the family hosts Ceremony at their home, inviting members and strangers alike to experience the land in its purest, untouched state. The way Native Americans thousands of years before them did.

For more information, visit Sanctuaryonthetrail.org.

Articles

Pentagon to pursue bonuses mistakenly paid to Guardsmen

Here’s a 9-step guide to calculating your credit card interest
Pentagon Press Secretary Peter Cook updates reporters about the California National Guard bonus repayments at the Pentagon in Washington D.C., Jan. 3, 2017.


The Pentagon announced yesterday that they had met Defense Secretary Ash Carter’s deadline of January 1 to set up a streamlined system to recover bonuses they had accidentally paid to thousands of California National Guardsmen several years ago.

Late last year, Carter ordered the suspension of efforts to recover the funds from soldiers until a system could be set up to fairly recover the bonuses.

Peter Levine, acting as the undersecretary for personnel and readiness, headed up the team to develop the recovery system. Levine spoke to reporters during the press conference, admitting that, though some of the Guardsmen might have made mistakes, “sometimes the service does” as well.

Levine said he had worked with the National Guard Bureau, the Army Audit Agency, the Army Review Boards Agency, and the Defense Finance and Accounting Service (DFAS) to develop the system, and that part of that system involved screening each case to determine if there was even enough information to pursue a resolution.

Cases that are determined to have enough information will go before the Army Board for Correction of Military Records, and Guardsmen will have an opportunity to make their cases then.

There are currently about 17,500 cases up for review which have been separated into two categories.

Also read: Gary Johnson speaks out on California Guard repayment scandal

The first category consists of roughly 1,400 cases where the Guard has determined that recoupment should happen, and they have been referred to DFAS for collection of those funds.

Levine said that he expected to see half of those debts forgiven.

For the remaining approximately 16,000 cases, Levin anticipated about 15,000 not meeting the criteria for pursuit.

The other thousand cases, according to Levine, will go through the same process as the 1,400 currently referred to DFAS.

In all, he said, he expects “fewer than 1,000” of the cases to go before the Board of Correction of Military Records.

Levine believes that the Board of Correction of Military Records will be able to hear all of the cases by July — the deadline set by Carter.

MIGHTY MONEY

Congress approves 2.1 percent military pay raise

Here’s a 9-step guide to calculating your credit card interest
A soldier deposits funds into a safe in a finance office, Nov. 4, 2013, at Bagram Air Field, Parwan province, Afghanistan.


“You get a raise, and you get a raise, and you get a raise. You all get a raise!” That’s what Oprah Congress is telling its military and civilian Department of Defense counterparts this month, according to military.com.

The summary for the National Defense Authorization Act for Fiscal Year 2017 throws a bit of shade toward President Obama, stating:

Unlike the President’s request, the NDAA:

  • Provides the full 2.1% pay raise for our Troops, as required by law
  • Stops the drawdown and actually increases the end strength of our Armed Forces
  • Increases ground and aviation training to address shortfalls that have contributed to accidents across the Services
  • Provides Operation and Maintenance support for a larger force, including increased depot maintenance, facilities sustainment and modernization, and ship maintenance
  • Replenishes depleted munitions inventories
  • Begins a turnaround in ship procurement with advanced funding for submarines and amphibious ships.

Effective January 1, 2017, members of the military and Department of Defense employees will see a slightly more than 2 percent pay hike. Additionally, threats to bachelors allowance for housing, (or BAH, were thwarted and the current BAH rates will stay put.

The NDAA provides funding for Israel’s missile defenses, plans to “deter” Russian “aggression in Europe,” prevents women from being required to enroll in the selective service, orders the Pentagon to reform commissaries and healthcare, and requires changes to the Uniform Code of Military Justice.

Here’s a 9-step guide to calculating your credit card interest
With the 2.1 percent increase in base pay, this is what your new pay will look like beginning January 1, 2017

Articles

Republicans urge POTUS for a defense budget increase

Members of Congress are urging President Trump to begin rebuilding the U.S. military, starting with a 2018 defense budget of at least $640 billion, most of which would go to buying more aircraft, ships, and other hardware.


That ambitious number would be about $50 billion above the spending caps set by the 2011 Budget Control Act, which enacted the process called sequestration to enforce the limits.

But House Armed Services Chairman Mac Thornberry and Senate Armed Services Chairman John McCain are ready to lead fights to eliminate the BCA caps so they can pay for the hardware, the additional personnel and the maintenance needed to restore a defense they say has been badly weakened by six years of reduced spending.

Here’s a 9-step guide to calculating your credit card interest
Thornberry and McCain’s plan calls for $640 billion in defense spending for fiscal year 2018, a $54 billion increase.

At a media briefing Feb. 6, 2017, to preview the upcoming congressional session, Thornberry (R-Texas) first urged Congress to pass an appropriations bill to cover the six remaining months of the 2017 fiscal year “as soon as possible.”

The federal government currently is being funded under a continuing resolution that runs until April 28 and limits most spending to the prior year levels.

“There’s no reason in the world to wait until April,” Thornberry said.

The HASC chairman then urged Trump to send the supplemental funding bill he has promised to increase defense spending this year. “The sooner the better,” he said.

When asked what the supplemental should cover, Thornberry said it should start with “the things that were in the House-passed NDAA (National Defense Authorization Act) that were not in the final bill. I think they should be at the top of the list.”

The NDAA cut $18 billion that the House wanted to add, which would have gone mainly to increased weapons.

Here’s a 9-step guide to calculating your credit card interest
The U.S. Air Force F/A-18F has an estimated flyaway cost of $98.3 million. | U.S. Air Force photo by Staff Sgt. Andy M. Kin

The deleted add-ons included 14 additional F/A-18 Super Hornets, another Littoral Combat Ship, and an extra LPD-17 amphibious warship for the Navy, plus 11 more F-35s split among the Navy, Marine Corps, and Air Force. It also would have bought the Army additional AH-64 attack helicopters and UH-60 utility choppers.

The deleted funds also would have allowed the services to hire even more troops than the 16,000 Army soldiers and the 3,000 additional Marines allowed by the final bill.

Funding the current fiscal year would clear the way for Congress to work on a fiscal 2018 budget, which should include an even bigger increase in defense spending, Thornberry said.

Asked what amount he wanted, Thornberry said, “Our view is about a $640 billion base budget to meet the increased end strength, the increased number of ships, to turn the readiness around, and deal with a lot of those problems.”

McCain (R-Arizona) used that same number in his opening statement at a Jan. 24 hearing of his committee.

“We have to invest in the modern capabilities necessary for the new realities of deterring conflict,” he said.

“We also have to regain capacity for our military. It does not have enough ships, aircraft, vehicles, munitions, equipment, and personnel to perform its current missions at acceptable levels of risk.”

“It will not be cheap,” McCain added. “In my estimate, our military requires a base defense budget for fiscal year 2018, excluding current war costs, of $640 billion.”

Both of the chairmen insisted the BCA caps must be removed, but only for defense, not for the domestic programs that also are limited.

MIGHTY MONEY

5 important investments that every veteran should make

Returning to civilian life after active duty can be confusing and somewhat daunting. Whether you have been in the military for many years or if you have returned home after a grueling tour, adjusting to your previous life is definitely not an easy task. While there is a myriad of questions you need to answer and many issues you need to tackle during this adjustment period, one of the most pressing questions is how to achieve financial freedom for your family.

5 Investment Opportunities for Veterans

Achieving financial stability can seem like a huge task for a veteran, but you can achieve it by creating passive income and even returning to the workforce. Most importantly, to achieve financial stability and freedom down the road, you need to make the right investments in your professional and personal realms. 

These investments range from setting up a retirement plan to actively investing in real estate, but this can also include upskilling and getting certified to take on a completely new career path. Let’s put the best options into perspective and look at some important life investments every veteran should make. 

Investing in health and life insurance

First and foremost, you need to set up your health insurance, which is especially important for veterans requiring long-term medical treatment, professional counseling, and more. Unless you have been in the service for 20 years and have health insurance through Tricare, you will have to look into health coverage outside of the military. Keep in mind–if you have a medical condition that is a direct result of your time on active duty, you may be eligible for Veteran Affairs health care coverage.

If you’re not eligible for either of these, then private health insurance is the way to go. You can find a plan that works for you through the Affordable Care Act or a new employer. Take your time to learn the key terms like deductibles, copays, coinsurance, and out-of-pocket maximums and how different insurers use them in their policies. You can extend your military healthcare coverage for up to 36 months post-service through the Continued Health Care Benefit Program to buy more time and sort out your health insurance. 

Consider Investing in Real Estate

The next big move you should make is to invest in real estate as a retired veteran. Due to rapid urbanization across the US and the world–real estate continues to be a thriving sector with many opportunities for long-term professional growth. Becoming a real estate investor allows you to sell properties for a quick influx of cash or rent real estate to business leaders and tenants to create a steady income. Both commercial and residential real estate investing are good options–and you should strive to invest in both over time.

Now, starting in real estate investing is best done with an experienced professional at your side – and by educating yourself first. There are many online platforms where you can learn the ropes quickly. The most -important step is to do your research to find up-and-coming real estate markets and good deals on properties and new developments. Over time, you should diversify your investments into commercial and residential properties–with a focus on sales-oriented and rent-oriented real estate. 

Get Certified and Invest in a New Career Path

Another great way to build financial stability over the long term while actively working is to change career paths through upskilling and online certification. For example, if you were a corpsman or a medic in any military branch– you might want to pursue a career in medicine and continue helping others in the civic healthcare system.

Now that the COVID-19 pandemic has created a need for highly-trained medical professionals– investing in advanced medical certification online is a great way for veterans to transition quickly into the healthcare industry and find stable employment. As a medic, you are already familiar with emergency response techniques and practices–now all you have to do is get the right certifications to work in a hospital or private practice. 

Because of the pandemic and many other socio-economic factors, the healthcare industry will be booming in the years to come, which is a great opportunity for you to thrive professionally. 

Set up a retirement plan

When you leave active duty, the first thing that can come to mind is how to ensure a healthy retirement. Naturally, you need money to do so, and you can do it by ensuring a steady cash flow from your real estate and other investments. However, you can also set up a retirement plan in other ways, mainly by saving up over the next few decades.

If you have 20 years of service, you are eligible for regular military retirement and a steady pension. If not, then you should start saving up now to meet your goals when you reach your retirement age. You can do this by opening up an individual retirement account (traditional or Roth), or you can contribute to a 401(k) plan. 

Invest in reducing your debt

Finally, make an investment plan to reduce your debt over the long term. It might not sound like an investment at first, but reducing and eliminating debt is one of the best ways to ensure a financially stable future. Make sure to set up a debt-repayment roadmap, and consider working with a financial advisor to minimize your losses and retain as much of your wealth as possible. 

Coming home from active duty can be tough–, and while you might want to deal with other immediate issues first, you should prioritize your finances and long-term stability. Consider making these investments now and over the next few years to build financial stability and freedom.

This article originally appeared on Active Duty Passive Income.

MIGHTY MONEY

Gary Johnson speaks out on California Guard repayment scandal

Here’s a 9-step guide to calculating your credit card interest
Maj. Gen. William H. Wade, the adjutant general for the California National Guard administers the oath of enlistment to Soldiers of Bravo Battery, 1st Battalion, 143rd Field Artillery during a recent visit Victory Base Complex, Iraq in 2007.


Libertarian presidential candidate Gary Johnson had strong words for the National Guard and the Pentagon after allegations emerged that the DoD is forcing California Guard troops to reimburse the government for enlistment bonuses it paid in error.

“It is beyond the bounds of decency to go after our veterans and their families a decade later,” he said in a statement obtained by We Are the Mighty. “These are rounding errors to the Pentagon, but these demands for repayment are ruining lives and causing severe hardships for service members whose sacrifices for the nation can frankly never be adequately be repaid.”

Johnson was referring to a Los Angeles Times story that alleges the National Guard is forcing nearly 10,000 guardsmen from California to repay reenlistment bonuses they were awarded 10 years ago.

According to the paper, more than 14,000 California Guardsmen were awarded the reenlistment bonuses as a result of the Army’s incentive program to retain soldiers during the height of the Iraq war.

The U.S. government investigated the California Guard reenlistment bonuses and found a majority of the requests had been approved despite the soldiers’ not qualifying for the bonus. There has been no suggestion that any of the Guardsmen who received the reenlistment bonuses were aware that they did not qualify for them.

The Los Angeles Times reports that Army Master Sgt. Toni Jaffe was the California Guard’s incentive manager at the time, and that after the Pentagon discovered the overpayments 6 years ago, Jaffe pleaded guilty to fraud. She was sentenced to 30 months in federal prison. Three other officers associated with the fraud also pled guilty, receiving probation after being forced to pay restitution.

Major Gen. Matthew Beevers, the deputy commander of the California Guard, accused the nearly 10,000 soldiers of owing a debt to the Army.

In his statement to The Los Angeles Times, Beevers claimed that the soldiers were at fault and that the Guard couldn’t forgive them. “We just can’t do it. We’d be breaking the law,” he said, not addressing whether the Guard was breaking the law by reneging on the contracts.

Several of the Guardsmen went on to deploy to Iraq and Afghanistan, many of whom sustained injuries as a result.

Military Times reports that the Pentagon is searching for ways to overcome the issue. “This has the attention of our leadership, and we are looking at this to see what we can do to assist,” Pentagon spokesman Captain Jeff Davis said Monday.

A host of lawmakers have stepped forward to condemn the Pentagon for harassing the Guardsmen who received the reenlistment bonuses, calling for congressional investigations into the matter. Though as of publication, no presidential candidate other than Johnson had addressed it.

Calling on President Obama and Congress to act immediately on the impacted Guardsmen, Johnson said, “The Pentagon needs a good dose of common sense far more than it needs these dollars, and making our service members pay for the government’s incompetence is beyond the pale.”

Here’s a 9-step guide to calculating your credit card interest
In a statement obtained by We Are the Mighty, Governor Johnson called for immediate action to be taken to keep the faith with California National Guardsmen.

MIGHTY MONEY

The Air Force just announced its ballin’ aviation bonus for 2019

The Air Force announced Jan. 23, 2019, the details of the fiscal year 2019 Aviation Bonus program.

The fiscal 2019 AvB program is designed to augment continuing aircrew retention efforts across the Air Force, by offering experienced aviators bonuses for signing tier-based contracts, ranging from three to 12 years of continued service.

Congress raised the annual maximum aviation bonus from $25,000 to $35,000 in the fiscal 2017 National Defense Authorization Act and required the Air Force to present aviation bonuses based on a business case analysis. The Air Force evaluates its rated inventory every year to ensure the AvB program is tailored to meet the service’s needs.


For the fiscal 2019 RegAF program, the following bonus amounts and contract lengths are being offered to active duty aviators whose initial undergraduate flying training service commitment expires in fiscal 2019:

Bomber pilots (11B), fighter pilots (11F) and mobility pilots (11M)

  • Annual payments of ,000 for contract lengths of three to 12 years
  • Lump-sum, up-front payment options of 0,000 exist for seven to nine year contracts and 0,000 for 10-12 year contracts
Here’s a 9-step guide to calculating your credit card interest

Lt. Col. Benjamin Bishop completes preflight checks before his first sortie in an F-35A Lightning II.

(U.S. Air Force photo by Samuel King Jr.)

Remotely piloted aircraft pilots (18X/11U) and special operations forces pilots (11S)

  • o Annual payments of ,000 for contract lengths of three to twelve years

Command and control/intelligence, surveillance and reconnaissance pilots (11R) and combat search and rescue fixed wing pilots (11H)

  • Annual payments of ,000 for contract lengths of three to nine years and ,000 for contract lengths of 10-12 years
  • A lump-sum, up-front payment option of 0,000 exists for seven to nine year contracts

Combat search and rescue rotary wing pilots (11H)

  • Annual payments of ,000 for contract lengths of three to nine years

Combat systems officers (12X) and air battle managers (13B)

  • Annual payments of ,000 for contract lengths of three to six years and ,000 for contract lengths of seven to nine years

For aviators whose contracts have expired or who have never signed a previous AvB agreement, the following bonus amounts and contract lengths are being offered:

Pilots (11X) and RPA pilots (11U/12U/13U/18X)

  • Annual payments of ,000 to ,000 based on the three to six year rates of the member’s core community identification as set above for contract lengths ranging from three to nine years
  • Contracts may not extend the airman beyond 24 years of aviation service

Combat systems officers (12X) and air battle managers (13B)

  • Annual payments of ,000 for contract lengths of three to five years
  • Eligible airmen must have 19 years or greater of total active federal military Service and contracts may not extend the airman beyond 24 years of aviation service

The application window for airmen interested in applying for the fiscal 2019 AvB program will be open until Aug. 30, 2019. For full eligibility requirements and details about program changes in fiscal 2019, airmen should visit the myPers website at https://mypers.af.mil.

This article originally appeared on the United States Air Force. Follow @usairforce on Twitter.

MIGHTY MONEY

18 million veterans now have a new benefit

Some 18.5 million honorably discharged veterans now have a lifetime benefit enabling them to shop online at ShopMyExchange.com, marking the first expansion of military exchange privileges since 1990.


“The Exchange is honored to open its virtual doors to millions of deserving veterans,” said Tom Shull, the Army and Air Force Exchange Service‘s director and CEO, a Vietnam-era Army veteran.

Here’s a 9-step guide to calculating your credit card interest
You still need to go get your hair fixed in person, though.

“There are many generations of service members who have not been properly recognized,” he added. “This new benefit acknowledges their service and welcomes them home. This is something veterans can enjoy the rest of their lives.”

Purchases Improve Quality of Military Life

Every purchase veterans make online will help to improve the quality of life for those who wear the uniform today, Shull noted, as exchange earnings support programs such as combat uniforms below cost, fitness centers, child development centers and youth programs on Army garrisons, Air Force outdoor recreation programs, school lunches for warfighters’ children overseas and more.

“This is a virtuous cycle,” he said. “As a veteran myself, it is an honor to pay forward support to active-duty service members and their families.”

Also Read: New online AAFES benefit for veterans is a success

Excitement for the new benefit has been building for months, AAFES officials said, thanks to social media shout-outs from Mark Wahlberg and Marcus Luttrell, Dwayne “The Rock” Johnson, Richard Rawlings and other celebrities. As a result, they said, more than 255,000 veterans verified their eligibility for the benefit before its official Nov. 11 launch.

To verify eligibility and begin shopping, Veterans can visit ShopMyExchange.com.

Articles

What is SGLI and do you actually need it?

Here’s a 9-step guide to calculating your credit card interest
The white gloved hands of a member of the U.S. Air Force Honor Guard hold a folded United States flag. The triangular shaped folded flag and accompanying ceremony is an inspiring way to honor the flag and what it represents during solemn ceremonies. (U.S. Air National Guard Photo by Master Sgt. Vincent De Groot 185th ARW Wing PA


In the military’s acronym-packed lingo, SGLI stands for “Service Members Group Life Insurance,” and according to the U.S. Department of Veterans Affairs, it is a “program that provides low-cost term life insurance coverage to eligible service members.”

Troops that are eligible for SGLI are active duty in any of the service branches; commissioned members of the National Oceanic and Atmospheric Administration or the U.S. Public Health Service; cadets, or midshipmen of a U.S. military academy; members, cadets, or midshipmen of an ROTC unit and engaged in authorized training or practice cruises; a member of the reserve or National Guard and are scheduled to attend a minimum of 12 periods of inactive training per year; or a service member who volunteers for mobilization in the Individual Ready Reserve.

Service members who are eligible for SGLI are automatically enrolled at the maximum rate of $400,000, though they may choose to decline or lower their coverage and make changes to it.

Service members retain their SGLI coverage for 120 days after separation from the service, though completely disabled veterans may extend that coverage for a maximum of two years after separation.

Reserve members who do not qualify for coverage are allotted “part-time” coverage.

So why do you need SGLI anyway?

Being a service member is obviously a high risk job. High risk jobs, according to CheatSheet, can cost as much as $2000 extra annually for life insurance companies, which is roughly 500 percent more than you’ll pay through your SGLI.

The bottom line is that SGLI is incredibly inexpensive, at just $29 a month, and it’s worth it for your family to have some peace of mind should something happen to you in the line of duty.

Articles

The military pay raise for 2017 might be a bit underwhelming

The U.S. military has a reputation for being overworked and underpaid.


But we all knew that going in.

The virtue of service and pride of wearing the uniform makes up for much of the disparity in pay compared to the civilian market. Still, it’s nice to get that bump in our paychecks every year.

Yet, the pay increase for 2017 won’t be so big. In an August 2016 letter to Congress, President Obama announced a 1.6 percent raise for the armed forces, consistent with the budget he sent to The Hill earlier in the year.

Here’s a 9-step guide to calculating your credit card interest
(White House photo)

Across-the-board pay increases for other federal employees will be 1 percent.

“These decisions will not materially affect our ability to attract and retain a well-qualified Federal workforce,” Obama said in his letter to Congress.

Pay raises for the military peaked in 1983 when President Reagan instituted a 14.3 percent pay raise. Since then, the increase hovered steadily between 3 and 5 percent, with an average of 4.2 percent, according to the Congressional Research Service.

Here’s a 9-step guide to calculating your credit card interest
Military pay raises since 1977.

According to Military.com’s Brendan McGarry, the Senate backs the President’s proposed numbers, but the House of Representatives was looking for a 2.1 percent raise.

When Congress agrees on how much it will be, the military pay raise will go into effect on January 1, 2017.

MIGHTY MONEY

4 tips for buying your first car as a junior troop

Purchasing your first car is a minefield filled with predatory lenders and scams. Young troops, unfortunately, fall victim to these bloodsuckers every year because they do not know of the special offers and protections available to them. It’s exciting to be on the lot, test driving your potential steed, but knowing the pitfalls that lurk in those lots will save you and your wallet a lot of grief.

It’s your first car and having your finances accounted for will make it easier when the additional expenses of maintenance, insurance, gas, and registration come into play. You wouldn’t go into battle without ammunition and you should equally not venture onto a lot without knowing your credit score, pre-approval amount, and potential financial threats.

Here are 4 tips for identifying and preventing scams targeting you, a junior troop, as you shop for your first car.


Here’s a 9-step guide to calculating your credit card interest

The “refusing pre-approved checks” scam

You found it. It’s the perfect car to take you from base to places where knife hands and regulation haircuts do not exist, but there is one problem: the dealer doesn’t want to accept your pre-approved check from your lender (bank). They may try to spin something along the lines of, “I don’t trust those, I’ve been scammed before.” They’re playing the victim; don’t believe them. Their next move will be to convince you to sign a financing agreement with them instead, effectively scamming you into a higher APR loan.

Walk off that lot and never look back. You don’t need that evil put on you, Ricky Bobby.

Here’s a 9-step guide to calculating your credit card interest

The “you have bad credit” scam

As a young troop, you probably don’t have a credit history at all, which is a double-edged sword. The positive is that lenders will give you the benefit of the doubt. Why? Well, because of your service, you’re easy to find and collect from if you become delinquent on payments. So, if a dealer says you have bad credit when you know, for a fact, that you don’t, it’s another scam waiting to happen.

We’re willing to bet that the dealer will tell you your only option for approval is to finance through them at a ridiculously high rate. The solution here is the same as before — walk.

Here’s a 9-step guide to calculating your credit card interest

The “buy here, pay here” financing scam

In this scam, the dealer will promise that you’re going to get a sweet APR if you finance through him, but the application process takes a few weeks. He’s a nice guy, though, so he’ll let you take the car home while everything finalizes. He’s trusting you, but then, once those weeks pass, he calls you with bad news: the loan was denied, and you’re forced to pay a much higher APR or lose that car.

The best defense against this scam is shop around for different lenders, get pre-approved, and don’t accept any unknowns. Do not let dealers talk you into something you’ll regret later. Not all “buy here, pay here” offers are scams, but why take the risk when the alternative is clear as day?

The “price is too good to be true” scam

There are advantages to buying directly from a person instead of a dealer, like a faster turnaround or a better deal. But keep your head on a swivel because you’ll also leave yourself open to other risks and scam artists. As always, if in doubt, bring a friend. With some information and a properly calibrated BS meter, a troop can venture into the unknown unafraid.

The ‘price is too good to be true’ is when a victim sees a car they want to purchase online and it’s priced well below market value. Usually, it’s a classic or an exotic car — something to entice the victim to overlook a few details. The scam artist states that they’re out of the country with the vehicle (for one reason or another), but they’ll ship the car to you — but only after they receive your payment. The scam artist will make it seem like they’re the one at risk.

Once the scammer receives your money, they will cease speaking to you and disappear. Surprise!

The lesson here? Always make purchases in person and be wary of wire transfers and money orders. And, as always, if it sounds too good to be true, it is.

If you feel like you have fallen victim or see a scam targeting your brothers-in-arms, you can report the car-buying scam at Fraud.org

MIGHTY MONEY

Program encourages banking for Veterans

The Veterans Benefits Banking Program (VBBP) is giving Veterans and their families access to greater financial independence, resiliency, and literacy.

VBBP is a partnership between the U.S. Department of Veterans Affairs (VA) Veterans Benefits Administration (VBA) and the Association of Military Banks of America (AMBA). The idea for the program came after a VA analysis revealed a high rate of Veterans were “unbanked,” says Joe Gurney, Senior Advisor of Fiscal Stewardship for the Office of the Under Secretary for Benefits.

“We were seeing an uptick in fraud because hundreds of thousands of Veterans were unbanked, so the Under Secretary actually had me look into this. By unbanked we mean Veterans receiving their VA benefits on a prepaid card or by check. I spent some time doing an analysis about demographics, where they were, who they were, and it turned out there were over 200,000 Veterans who were unbanked,” Gurney said.

Dr. Paul Lawrence, VA Under Secretary for Benefits, charged Gurney with determining courses of action to address the issue. Through his research, he found AMBA — an association of banks operating on military installations. The organizations committed to a joint effort of working with those financial institutions that already “have experience dealing with the unique financial challenges of military members and their families,” retired Air Force Maj. Gen. Steven Lepper, President and CEO of AMBA, said.

A white paper identified key areas affecting today’s Veterans, such as not being able to get a bank account and incurring high fees when cashing checks or using prepaid cards. The VBBP then created a number of common requirements for participating banks and credit unions to join the program, including:

  • Willing to provide free checking accounts and free access to ATM networks to Veterans who deposit their monthly VA benefits in their account, and
  • Helping any Veteran become qualified to open a banking account.

Another pillar of the program is a goal of simplifying banking choices by helping eligible Veterans select the right bank and services for themselves and their families. The VBBP website also includes links to resources on topics like fraud protection, identity theft, financial education, and a checklist for opening a bank account.

Lepper adds the VBBP is a work in progress and there are already talks for ways to improve the program.

“Veterans have as many needs as there are Veterans. It’s hard to generalize with anyone, whether they’re military or Veterans. We’re always on the lookout to help make Veterans’ management of their financial resources much more effective and safe,” Lepper, who served 35 years in the Air Force, said.

Gurney says the VBA also looks at trends in the unbanked on a constant basis to identify lessons learned and drive future program enhancements.

“AMBA has setup a constant feedback loop to try to give our Veterans the best experience that we can. For example, we discovered that Veterans want financial education. They want information — especially during COVID – that helps them deal with money, particularly borrowing money. As a result of that feedback, we added financial education to the VBBP website and plan to expand it as we continue improving the program,” Gurney said.

Lepper explains that by giving Veterans access to banking options, it also creates a motivation to save.

“The one benefit you don’t think about immediately when you think about opening a bank account versus receiving your benefits on a prepaid card or by paper check is the ability to save money. If you cash a check or withdraw all the money on your prepaid card; you walk around all month with money in your pocket. With checks and prepaid cards, there’s no motivation to save and no mechanism to save, whereas with a bank account, you do have that ability to save money in a safe and cost-effective way.

“What we’re hoping, as a collateral effect of opening up a bank account or credit union account, is that our Veterans will be able to save money and not live month-to-month on their VA benefits,” Lepper said.

Other features of utilizing a bank or credit union account:

  • Get access to reasonable loan amounts with advantageous interest rates, and
  • Credit repair.

Thirty four financial institutions are now part of the VBBP. In addition to ensuring Veterans and their families receive benefits safely and reliably, the participating banks and credit unions offer another advantage: accessibility.

A key component of the program is to meet Veterans where they are, whether that be in a large metropolitan area, rural town, or online. By working with financial institutions that have diverse geographical and digital footprints, Veterans can receive streamlined access to information and communication that caters to their needs. Another goal was to create a robust program that is easy to navigate. The VBBP website https://veteransbenefitsbanking.org/ contains a directory that lists participating banks and credit unions, along with direct links to more specific information on products and services.

Since the inception of the program at the end of 2019, VBBP has grown to roughly 1,000 website visitors per week, revealing a growing interest in both financial education and banking options. Now that awareness is growing, Gurney recommends Veterans take that next step of setting up an account so that they no longer have to put themselves at risk by relying on external entities like check cashing companies.

“We really want to urge Veterans during this time, especially with COVID, to consider direct deposit and setting up a bank account so they can have an easier, faster, and safer way to bank,” he said.

Once Veterans have a bank account, they can sign up for direct deposit by either updating their profile on va.gov (and providing their bank account and check routing numbers) OR by calling 1-800-827-1000.

As the partnership moves into its second year, the organizations plan to expand need-based resources that meet Veterans where they are in their financial life cycle.

Any Veteran or beneficiary who receives federal monetary benefits and who wishes to receive their benefit payments electronically can participate in the VBBP. A full list of participating banks and credits unions can be found at https://veteransbenefitsbanking.org/.

This article originally appeared on Military Families Magazine. Follow @MilFamiliesMag on Twitter.

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