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

Commissary savings overhaul might cost shoppers extra

A recent overhaul of the defense commissary program aboard military installations will result in higher costs for its customers, according to a recent MilitaryTimes report.


New rules, which were put in place as part of the latest annual defense authorization act allow the defense commissaries, or DeCA, to up the prices on about 1,000 products in 10 stores. Additionally, all 238 commissaries were authorized to raise prices on national brand products.

According to MilitaryTimes, this will allow officials to explore how the overall impact of raising these prices might help them to reduce operating costs that taxpayers cover, which currently sits at about $1.3 billion annually.

Before the rollout of the overhaul, DeCA was able to sell items at the commissaries at cost plus 5 percent. Under the new system, DeCA is able to purchase items at a reduced rate, but sell them at their previous rates or higher.

For example, if DeCA purchases a product at $.10 cheaper than before, it might not sell that product for the reduced price at the commissary, MilitaryTimes explains.

That extra cash might go, instead, toward operating costs or toward lowering the price of a different product, or both.

One of the issues with this new system, according to MilitaryTimes, is that the consulting company who designed it may be benefitting financially. MilitaryTimes claims that “unofficial reports from members of industry” say that Boston Consulting Group (or BCG) stands to make between 50 and 60 percent of the amount prices are reduced.

So that dime savings per sale of a particular item might net BCG between a nickel and 6 cents per unit sold.

DeCA officials are unable to confirm those claims, saying instead that the details of extra awards, fees or incentives for BCG won’t be available until they are “determined at a later date”, MilitaryTimes says.

Chris Burns, the executive director of business transformation at DeCA, told MilitaryTimes that the money DeCA saves is going toward reducing product prices or toward operating costs, but MilitaryTimes could not determine if consulting fees were included in those operating costs.

The effects of the overhaul are being felt elsewhere, as well. Some national brands who are pressured to lower prices below cost are pulling their items from the commissary altogether, MilitaryTimes reports. They claim that “multiple sources” are saying that other programs, like scholarship donations, could be cut.

Some good news does come out of the overhaul, however. DeCA will begin rolling out store brand items later this month that should be cheaper than national name brands.

While Congress approved the Department of Defense’s DeCA program, they are keeping a close eye on it and on whether it actually saves anyone money, MilitaryTimes says.

Articles

5 basic things you should know about the thrift savings plan

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


Retirement planning can be stressful, but figuring out how to finance it takes a great deal of the stress away. Enter the government’s Thrift Savings Plan, or TSP. The first step in understanding TSPs is answering five basic questions: who, what, where, when, and why.

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

Who: The thrift savings plan is available to federal employees and members of the uniformed services. It is managed by BlackRock, a financial planning and investment firm headquartered in New York City.

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

What: TSP is a retirement savings plan similar to a private sector 401(k). Federal employees and military personnel can contribute up to a certain percentage of their base pay to their TSP. BlackRock assigns a broker to manage TSP accounts. Brokers are not held to the same standards as fiduciaries in that a broker has no vested interest in your funds; rather a broker’s only job is to invest money in suitable securities.

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

When: If you are a federal employee who joined your agency after 2010, you’re automatically enrolled in TSP with 3 percent of your base pay sent to your TSP; your agency matches this contribution automatically. If you joined your agency before 2010, an automatic 1 percent of your base pay is sent to TSP; your agency matches your additional contributions above the 1 percent. Military members must set up their own contributions and there is no matching contribution from the military.

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

Where: Military members can set up contributions to TSP through MyPay. Which type of funds you decide to invest in will determine when you can access the funds from that investment. There are L Funds, which are “lifestyle funds” that you can withdraw from at a predetermined time. Then there are G, F, S, C, and I funds, which rely on you to make your own investment decisions with a broker, according to the government’s TSP summary.

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

Why: A thrift savings plan gives you the ability to participate in a long-term retirement savings and investment plan. Additionally, you can choose between a regular TSP and a Roth TSP. Traditional TSP is tax free as you contribute, but you’ll pay taxes when you withdraw the funds. A Roth TSP allows you to pay taxes upon investment, and withdraw at a later date tax free. The upside to utilizing the government’s TSP is that you won’t pay fees to invest, and you’ll have a broker to manage the funds.

MIGHTY MONEY

Finance Friday: How to benefit from historically low mortgage rates

You might be living under a rock if you haven’t heard about the 10 Year treasury at an all-time low and the federal reserve cutting interest rates. Or, far more likely, you’re just not a numbers and data nerd like me with a vested interest in all things finance. Luckily, if you’re a prospect or existing homeowner, one thing is certain, and that’s a win for you in this economic time. Breaking this further down into how it applies to your earned VA Home Loan benefit, there are two subsections that need to be explored: purchase and refinances.


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

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New home purchases

What these amazing low rates mean for you is more purchasing power. For example, a 0,000 30-year home loan at 4.5% is a whopping 1 MORE every single month than it would be at 3.5% (,000 over the full lifespan of the loan). An alternate way to look at this is that you can purchase a 0,000 at the 3.5% rate for the same monthly cost as a 0,000 loan at 4.5%. That’s an increase in ,000 upfront purchasing power for the SAME MONTHLY COST. If that doesn’t scream raining money to you, I don’t know what can.

Refinances

If you already have a VA home loan and just had some sort of feelings about missing out on this amazing opportunity, the good news is you can still capitalize on this opportunity through a VA Interest Rate Reduction Refinance Loan (IRRRL, also known as a streamline refi). Just like anything else, there are myths floating around out there, and you know I’m going to break through them.

You do not have to be currently living in the home you wish to refinance. If you have a home that was once your primary residence, which is the only kind of loan the VA writes, then you qualify for a VA IRRRL (but NOT a cash out refi and NOT switching from conventional to VA when it’s not owner-occupied). It really is that simple. Easy peasy!

If you’re looking at a transition but living in the home right now, you are NOT obligated to extend your plans to live in the home for any certain period of time. Just like any VA loan, there are absolutely no minimum residency requirements.

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

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A refinance is exponentially easier than a purchase transaction. No appraisal or inspection is required for a streamline refi. You DO need to be able to prove an ability to repay, so employment verification is required. Lower documentation requirements all around make for an easier process, however. Bank statements, pay stubs, proof of homeowners insurance and a current mortgage statement are what you can expect your lender to ask for.

Expectation management is important. Expect a slower closing turn time than your traditional 30-day purchase loans. It is not a sign of incompetence on the lender’s behalf, it is simply a prioritization. When compared to a purchase contract that is tied to multiple parties for timelines to move, the urgency for a refi comes secondary. No one’s earnest money deposit and moving schedule is driving the need, and there is a lot more skin in the game on a purchase deal. Expect to see a 45-day rate lock on your refi and know that it’s nothing personal.

MIGHTY MONEY

Now you can directly invest in hiring veterans – here’s how

When the opening bell at the New York Stock Exchange rang out on Monday, July 23, 2018, it was Chris Isola, head of Veterans Affairs at UBS, ringing the bell. You may not know who Chris is, but you will be interested in what he’s bringing to the New York Stock Exchange: Veterans – and in a big way.

Isola represent UBS, an investment bank like many others on Wall Street, providing financial advice and other products to wealthy institutions, individuals, and corporate clients all over the world. The bank has indexed the price movements of certain companies’ stock — companies with policies, practices, and outcomes that support the employment of American veterans.

From that index, you can now buy into an Exchange Traded Fund that supports the best companies that meet UBS’ liquidity and stability standards while being the best example of military veteran employers. It’s all based on Viqtory’s Military Friendly employer rating.


In a world where both Main Street and Wall Street are increasingly removed from the wars and conflicts currently fought by the military, the economic powerhouse that drives America is working to create jobs and opportunities for the men and women who make the world’s largest economy possible: U.S. military veterans.

“We believe this is an innovative way for investors to express their support for the veteran community,” said Richard Cea, Executive Director of Exchange Traded Products at UBS. “This ETF provides investors with exposure to companies that recognize the value of our nation’s veterans to the workforce.”

ETFs are financial products that trade like common stock, complete with a ticker symbol, but is essentially a pool of different stocks owned by the fund. Investing in an ETF means you’re buying shares of the pool of companies owned by the fund. The overall value of the pool is divided into shares.

In this case, the ticker symbol HONR represents the InsightShares Patriotic Employer ETF and the fund owns stocks in businesses that value veteran employees, based on Viqtory’s Military Friendly employer reviews. The HONR fund also actively donates portions of its profits to veteran-related charities. Some of the stocks held by HONR include:

  • Devon Energy
  • Proctor Gamble
  • Boeing
  • Verizon Communications
  • Coca-Cola
  • IBM
  • Walmart
  • JPMorgan Chase Co.
  • Honeywell
  • Southwest Airlines
  • T-Mobile US
  • Starbucks Corporation
  • General Mills, Inc.

So when you buy into the HONR fund, you’re buying into a fund that supports only corporations who proved their mettle in hiring America’s veterans, are genuinely good business investments, and will routinely give back to military-veteran oriented charities and nonprofits.

It’s a small way of giving a buck to veterans while doing something good for your retirement portfolio.

MIGHTY MILSPOUSE

Organizations offer financial support for families impacted by COVID-19

Military support organizations have distributed thousands of dollars in financial assistance to service members and their families impacted by COVID-19, with services available for living expenses, emergencies, education and more. The application process, eligibility requirements and availability of funds vary by organization. Below is a breakdown of information provided by officials from each organization:


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

AIR FORCE AID SOCIETY

The Air Force Aid Society has distributed ,414 in assistance for financial needs attributed to COVID-19.

Services available: Emergency assistance through no-interest loans and grants; need-based educational grants, merit-based scholarships; and on-base community programs.

How to apply: Our central point for seeking assistance is the local base Airman Family Readiness Center. They have all been declared mission-essential by local commanders. All of them can and do take applications online and any contact is minimized. For members not near a base, we have reciprocal with our fellow relief societies. They will render assistance and we will reimburse them (see the list below). This mutual support extends to our partners at the American Red Cross, particularly for those not near any military installation. Airmen can call the dedicated American Red Cross Military Service line and be assisted.

For airmen not near a base, the Air Force Aid Society has reciprocal agreements that allow you to receive assistance through these other agencies:

  • Army Emergency Relief (located at Army installations, worldwide)
  • Coast Guard Mutual Assistance (located at Coast Guard installations, worldwide)
  • Navy-Marine Corps Relief Society (located at Navy installations, worldwide)
  • American Red Cross Service to the Armed Forces: call 877-272-7337

Visit https://afas.org to learn more about the Air Force Aid Society.

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

ARMY EMERGENCY RELIEF

Army Emergency Relief has supported 128 soldiers with 2,000 disbursed in grants and zero-interest loans related to COVID-19, as of the beginning of May, according to AER officials.

Services available: Active-duty soldiers and their families are eligible for the full range of 30+ AER benefit categories if they were impacted by the DOD travel ban or PCS stop movement order. They can apply online here.

Additionally, in March, AER extended travel ban/stop movement benefits to non-Title 10 reserve and National Guard soldiers who had been impacted. More recently, AER also turned on new benefits for Title 10 and Title 32 soldiers who have been activated for any length of time by the president or their state’s governor to help with the COVID-19 response. The new Title 10/Title 32 benefits are active whenever the activation begins and for 30 days past the end of their activation. Any soldiers who are Title 10/Title 32 can apply for help with basic living expenses and/or personal transportation costs.

How to apply: Recognizing that face-to-face meetings to apply for assistance may be limited or not advisable, AER has arranged a new process to allow for soldiers to electronically submit requests for assistance. Soldiers can go to the AER website to determine the easiest way to get benefits. Soldiers who cannot get in touch with a local AER office for whatever reason can also submit a request 1) by contacting one of the other military aid societies and/or 2) through the American Red Cross by calling 1-877-272-7337 and selecting option 1 for financial assistance.

Visit https://www.armyemergencyrelief.org/covid19/ to learn more about Army Emergency Relief.

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

NAVY-MARINE CORPS RELIEF SOCIETY

Navy-Marine Corps Relief Society provided COVID-19-related relief to 502 clients with over 3,000 in interest-free loans and grants, as of this month.

Services available: The services we provide are to assist with the financial needs that arise from the current pandemic, whether that is assistance with paying bills, rent etc. We currently offer a COVID-19 Rapid Response for up to 00; no lengthy application and no need for financial counseling. We also have our traditional loan services available for greater needs

How to apply: Processes for applying vary by location, visit www.nmcrs.org/locations to find out more.

Visit https://www.nmcrs.org to learn more about Navy-Marine Corps Relief Society.

COAST GUARD MUTUAL ASSISTANCE*

Coast Guard Mutual Assistance serves the entire Coast Guard community. To date, it has worked with 438 clients and distributed 2,034.97, according to its website.

Services available: Varying rates of assistance are available to those with lost wages, members in medically-induced quarantine, and travel fee reimbursement. Additional assistance exists for childcare and education assistance, and medical assistance. The full list can be viewed here.

How to apply: Find a local CGMA representative at https://www.cgmahq.org/locations.html.

Visit https://www.cgmahq.org to learn more about Coast Guard Mutual Assistance.

*Information obtained from its website

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


MIGHTY MONEY

These are the successful habits of 600 millionaires

Investing can be intimidating.

But those who do it right tend to share similar characteristics, according to Sarah Stanley Fallaw, the director of research for the Affluent Market Institute. She coauthored “The Next Millionaire Next Door: Enduring Strategies for Building Wealth,” for which she surveyed more than 600 millionaires in America.

During her research, she found that five components mark successful investors, including those who are rich: a personality for risk, a high-risk preference, confidence in investing, composure, and knowledge regarding investments and investing.


But millionaire investors do one thing differently: They make more effort with the final component.

“They spend time building knowledge and expertise in managing investments,” Stanley Fallaw wrote.

Millionaire investors spend more time planning for future investments

According to her, millionaire investors spend an average of 10.5 hours a month studying and planning for future investments. That’s nearly two hours more than under-accumulators of wealth — defined as those with a net worth less than one-half of their expected net worth based on age and earnings — who spend 8.7 hours a month doing so.

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

(Photo by Adeolu Eletu)

In her study, 55% of millionaires said they believe their investing success is because of their own efforts in studying and becoming educated, rather than advice provided by professionals.

“Their literacy in financial matters means that they are more tolerant of taking investment-related risks,” Stanley Fallaw wrote. “Future outlook and financial knowledge typically relate to taking greater financial risk, so the time they spend in managing and researching investments helps in decision-making.”

Financial literacy is related to financial “success” outcomes more so than cognitive ability, according to Stanley Fallaw. Having the knowledge required to make appropriate financial decisions — along with a long-term and future-oriented outlook, as well as a calm manner — allows millionaires to make better financial decisions, she said.

Millionaires also favor index funds

Millionaire investors also have something in common when it comes to investing strategies: They act simply, according to John, who runs the personal-finance blog ESI Money and retired early at the age of 52 with a million net worth. He interviewed 100 millionaires over the past few years and found that many of them use the same investing strategy: investing in low-cost index funds.

“The high returns and low costs of stock index funds (I personally prefer Vanguard as do many millionaires) are the foundation that many a millionaire’s wealth is built upon,” he wrote in a blog post.

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

(Helloquence photo)

“Index funds are the most straightforward, cheapest, and most likely way to see strong long-term returns,” the former hedge-fund manager Chelsea Brennan, who managed a id=”listicle-2633716796″.3 billion portfolio, previously wrote in a post for Business Insider. “Index mutual funds offer instant diversification and guarantee returns equal to the market — because they are the market.”

Even the billionaire investor Warren Buffett has championed low-cost investing, often recommending Vanguard’s SP 500 index fund for the average investor, Business Insider reported. He previously called index funds “the most sensible equity investment.”

Personal Finance Insider offers tools and calculators to help you make smart decisions with your money. We do not give investment advice or encourage you to buy or sell stocks or other financial products. What you decide to do with your money is up to you. If you take action based on one of the recommendations listed in the calculator, we get a small share of the revenue from our commerce partners.

Featured image by Sharon McCutcheon.

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

MIGHTY BRANDED

5 ways USAA is still the leading financial institution for veterans

There are a lot of choice for veterans to leverage their time in the military to get great financial services at a competitive cost. The fact that so many businesses and bank are geared towards veterans is a blessing but one institution stands out among the rest – and has for nearly a century.


The financial institution was founded in 1922 after a group of Army veterans took it upon themselves to secure their own need for auto insurance. In doing so, they provided for their fellow veterans. The USAA of today carries that tradition on, with 12.4 million members and offering auto insurance, along with insurance for homeowners and renters, retirement planning, and, of course, banking services. When other banks were teetering on the edge of failure during the financial crisis, USAA actually grew. This is an institution that is as solid as a dollar.


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

Auto Insurance

USAA’s original purpose is still one of its best offerings – and one of the best offerings. Even in competition with the civilian world’s best insurers, going with USAA can save its membership at least 0 on their premiums, even for high risk drivers who may have a DUI or more on their records. JD Power even gave USAA a 5/5 rating on their customer service and satisfaction records.

They also offer a car buying service that can sometimes save their members money in buying any kind of vehicle.

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

Credit Cards

Everyone knows too much credit debt is not a good thing, but having a card open with a low balance enlarges your purchasing power and is actually good for your credit report. Still, it’s important to be responsible with your credit. That being said, that kind of responsibility includes deciding which card is right for you. USAA offers a few credit cards designed to fit the lives of military members, veterans, and their families. The USAA Rewards American Express Card and Reward Visa offers the best cashback bonuses a military member can find. USAA’s credit cards also offer some of the lowest interest rates and APRs found anywhere.

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

Easy banking services

Any bank or financial institution who says they offer the best interest rates on savings accounts may have a bridge to sell you. Most savings accounts can offer two percent at the most. While USAA doesn’t offer quite that much, its banking services are stellar. Since they have few physical locations or ATMs, the bank offers reimbursements on ATM fees and no monthly service fees. On top of that, there’s no minimum balance and their rates are still competitive. They also offer free funds transfers between accounts.

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

Retirement services

If you’re planning for retirement and want a low-risk security, you could hardly do better than some of USAA’s mutual fund offerings. USAA manages its own mutual funds and, in the face of the 2008 financial crisis, the USAA Income Fund (USAIX) posted a 19 percent return while much of the rest of the market struggled to break even or even minimize their expected losses. The reason? While USAIX invests heavily in corporate debt, the fund’s mantra is still about minimizing risk.

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

TV doctor pose!

Other services and support

There are a couple of life insurance options, including one for military members only if SGLI isn’t enough. On top of that, they can get great rates for health, dental, and vision insurance as well as umbrella insurance for protection against things not covered by other kinds of insurance, like legal judgements. For per month you can be protected from lawsuits up to id=”listicle-2640236181″ million. But this veteran-oriented financial institution does so much more

USAA sponsors amazing veteran-oriented events and organizations – like the Military Influencer Conference, a three-day conference of service members, veterans, and spouses who work to elevate the military veteran community. The 2019 Military Influencer Conference is sponsored by USAA and brings together the brightest stars in the military-veteran entrepreneurial community to learn and share their business-building knowledge.

MIGHTY MILSPOUSE

Recent changes with the 2020 NDAA and how they impact you

The National Defense Authorization Act (NDAA) is an annual piece of legislation which gives authority and funding to the United States Military. While it is a detailed body of work that doesn’t make for light reading, it should be read. This legislation is filled with items that impact the military family directly.


It addresses military pay

The 2020 NDAA provided a 3.1% pay raise to military service members. This pay raise was the biggest one to be received in the last decade and was reflected in the first paycheck received by service members of 2020. The bill also extended specific bonuses and special pay. One of the big take-aways of this bill is the focus on supporting not just the member, but the military family as a whole.

Military spouse education and employment

Within the bill there are increases in support of professional licensure for spouses. With the new 2020 bill, spouses are currently eligible for up to 00 in reimbursement for licensure costs accumulated when moving. This is twice the amount that was authorized in last year’s bill. It also addresses license portability by giving authorization to the Council on State Governments to research ways to create reciprocity across state lines.

The bill also extended opportunities for spouses for education. The My Career Advancement Account program is an example of this, as it is a valuable resource for military spouses. It offers up to 00 in assistance for licensure, certification, or an associate’s degree in a field that is portable. The eligibility for this is limited to E-1 through E5, W-1 through W-2, and O-1 spouses. The initial pilot program had it available to all spouses but rising costs and enrollment forces restrictions in who can utilize this benefit. In this bill language, Coast Guard spouses were also included even though they fall under the Department of Homeland Security.

Military housing reforms

One of the key elements of this bill is that it addresses the issues within military privatized housing. The bill created new accountability for these companies by enforcing quality assurance measures. It also increased the number of required inspections. This bill provides an additional 1.8 million dollars to make sure that each housing office has the vital personnel it needs to ensure military families are taken care of.

One of the tools that will be utilized going forward is a way to assess and evaluate for risks within military housing. This includes things like mold and lead. It also allows for the BAH to be withheld from the private housing entity until issues or disputes are solved. Another key piece is that it forces transparency by requiring these entities to disclose repairs or issues prior to lease signing. There will also now be a required Tenant Bill of Rights and minimal livable standards established.

Military family needs

The NDAA also authorized million for the STARE BASE program, which is a DOD youth program. It is an American military educational program for grades K-12 that teaches science and math in hands on ways. It was created to tackle the low rates of readiness in these subjects by implementing a program that makes math and science fun and interactive. To learn more about this program and to see if it’s located in your area, click here.

One of the chief concerns outlined in the 2018 Blue Star Families survey was that 72% of military families cannot find reliable childcare. An amendment was included in the NDAA for 2020 that creates more coordinator positions on bases to assist with childcare and extends childcare hours for families.

Another key piece to this legislation is that it created the ability of military service members to sue under administrative claims for medical malpractice by a military provider. Although there was existing legislation for under the Federal Tor Claims Act, the United States itself was immune. After countless hearings within congress over a decade, this amendment passed within the NDAA. If a service member sustains injury or death they can file a claim and receive up to 0,000 as long as they file it within two years.

Surviving spouses receive relief

Finally, one of the biggest parts of the 2020 NDAA is the elimination of what is known as the “widows’ tax” in phases. For multiple decades surviving families have not received their full benefits as they deserve, even though they paid into the benefit programs. This is a piece of legislation that has been debated and fought over for almost twenty years. Finally, change is coming and it will be finalized by 2023.

If you’d like to look through the 2020 NDAA, you can find it here. Fair warning, it is 1119 pages long. However, a pro tip is to utilize the search ability within the document to enter terms that you want to specifically read about. This will bring you exactly where you need to go. Happy reading!

This article originally appeared on Military Spouse. Follow @MilSpouseMag on Twitter.

MIGHTY MONEY

USAA to Return $520 Million to Members

SAN ANTONIO – USAA, the country’s fifth largest property-casualty insurer, will be returning $520 million to its members. This payment is a result of data showing members are driving less due to stay-at-home and shelter-in-place guidance across the country. Every member with an auto insurance policy in effect as of March 31, 2020, will receive a 20% credit on two months of premiums in the coming weeks.

As a member-owned association, USAA historically returns a portion of profits to members. In 2019, we returned $2.4 billion in dividends, distributions and bank rebates and rewards. This brings the total amount returned to members since January 2019 to nearly $3 billion.


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

“We understand the impact this pandemic is having on our country, and especially our military community and their families, many of whom also are working on the front lines of the crisis. Returning premiums provides timely help for our members,” said USAA President and CEO Wayne Peacock. “USAA has been facilitating the financial security of military members for nearly 100 years, and this is another way we can serve them well.”

Early data trends show USAA members are heeding the calls to suspend nonessential travel, leading to fewer miles driven and fewer accidents.

How it works

Members will automatically receive a credit applied to their bill. They do not need to call, and no additional action is required.

Ways USAA is providing financial relief for members

This is just one of several steps USAA has taken to provide financial assistance to members, including:

  • Special payment arrangements are available to assist members experiencing financial difficulties. USAA will not cancel members’ auto or property insurance policies or charge fees due to late payments on USAA auto and property insurance coverage through June 17, 2020.
  • Expanded auto insurance coverage for members who use their personal vehicles to deliver food, medicine and other goods for commercial purposes.
  • USAA Bank is offering special payment assistance programs for eligible members including a 90-day credit card payment deferral, a 60-day payment extension on consumer loans, and special mortgage and home equity line of credit payment assistance.
  • USAA Life Insurance Company is offering special payment arrangements on life and health insurance policies, including a 60-day extension to the 30-day grace period.
  • USAA Life Insurance Company is waiving and reimbursing deductibles and co-payments for coronavirus-related testing received on or after Feb. 4, 2020, for members who have USAA Medicare Supplement plan.
  • USAA Investment Management Company is reducing managed portfolio fees 50% (effective April 1 through May 20‚ 2020).
Here’s a 9-step guide to calculating your credit card interest

Additionally, USAA has taken steps to help ensure its employees stay safe and able to serve members by enabling nearly all 35,000 employees to work from home and committed .4 million to help military-focused and other nonprofits respond to this pandemic.

More information is available at www.usaa.com/coronavirus.

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What is Hazardous Duty Incentive Pay and why do you need it?

Here’s a 9-step guide to calculating your credit card interest
U.S. Air Force Airman 1st Class Alex McClendon, 633rd Aerospace Medicine Squadron bioenvironmental engineer technician, prepares to enter a simulated contaminated area during Integrated Base Emergency Response and Capability training at Langley Air Force Base, VA


Hazardous Duty Incentive Pay is part of the U.S. military’s Special and Incentive pay system and is intended to help the services address their manning needs by motivating service members to volunteer for specific jobs that generally otherwise pay them more in the civilian sector.

Each hazardous duty incentive pay amount is in addition to base pay and other entitlements.

Title 37 U.S. Code, chapter 5, subchapter 1, outlines several types of S&I pay, and sections 301a and 310 specifically address Hazardous Duty Incentive Pay and Hostile Fire/Imminent Danger pay, respectively.

HDIP is payable to both enlisted and officers of all the service branches unless specified.

Section 301 (a) addresses the following S&I:

1. Flying Duty (crew members)

Who: Flight crew who are not aviators and regularly fly.

How much: $110 – $250 per month, determined by rank

2. Flying Duty (non crew members)

Who: Anyone on flying duty who isn’t crew, but still performs duties related to flight.

How much: $150 per month

3. Parachute Duty

Who: The crazies who jump out of perfectly good planes.

How much: $150 per month, except for High Altitude Low Opening (HALO) jumps at $225 per month

5. Pressure Chamber Duty, Acceleration and Deceleration Duty, Thermal Stress Duty

Who: 301 (a) (5-7) all pertain to those service members who agree to be guinea pigs.

How much: $150 per month

8. Flight Deck Duty

Who: Those on a flight decks that are more dangerous than normal, because aircraft hurtling towards them at breakneck speeds is just another Tuesday (i.e. on ships).

How much: $150 per month

9. Toxic Pesticides Personal Exposure

Who: Those who are regularly exposed to toxic pesticides in relation to their jobs.

How much: $150 per month, because nothing says “thank you for your service” like toxin poisoning and $150

10. Toxic Fuel/Propellants and Chemical Munitions Exposure

Who: Those doing jobs that expose them to toxic fuels or propellants or chemical munitions.

How much: $150 per month

11. Visit, Board, Search and Seizure (VBSS) – Maritime Interdiction Operations

Who: Navy personnel who are part of a team that conducts VBSS in support of Maritime Interdiction Operations — basically modern-day American pirates on the good guys team.

How much: $150 per month. Commence to booty jokes.

Section 310 Hostile Fire/Imminent Danger Pay

Who: Those who are subject to hostile fire, explosions of hostile mines; on duty at/ deployed to areas where their status as a service member could put them at risk of threats of physical harm as a result of civil unrest, civil war, terrorism, or wartime conditions

How much: $225 per month

For more information on hazardous duty incentive pay and S&I, check out Military Compensation.

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This fund helps the wounded and caregivers in ways the VA can’t

Here’s a 9-step guide to calculating your credit card interest
(Photo: azcaregiver.org)


Years of war have rendered Operation Iraqi Freedom (OIF) and Operation Enduring Freedom (OEF) service members with severe physical, mental and emotional scars that will likely impact them throughout their lives. The financial implications and consequences of these scars are well documented and can affect all aspects of their lives and lives of their family members to include housing, employment, and their financial well-being.

The PenFed Foundation’s Military Heroes Fund provides wounded veterans, military families, and caregivers with financial assistance and support that the Veterans Administration cannot offer due to budgetary and regulatory restrictions. These unmet needs are identified by VA advocates, National Guard case workers, the Army Wounded Warrior Program, and non-profit referral partners.

The Military Heroes Fund has two components:

  • Emergency financial assistance for OIF/OEF wounded warriors and their families facing short-term financial difficulties.
  • Family and Caregiver Transition Support
    • Child Care support provided for families of the wounded OIF/OEF families while receiving outpatient care at a VA medical facility, family visits, doctor visits, job-related.
    • Short term training or education expenses for job certification, licensure requirements and/or course materials such as course books technology fees, etc.
    • In-home health care for injured veteran to support caregiver respite needs.

The Military Heroes Fund gives grants to wounded veterans who:

  • Served in Operation Iraqi Freedom (OIF) or Operation Enduring Freedom (OEF)
  • Have been wounded, ill or injured during your OIF/OEF service
  • Have received an Honorable discharge
  • Are facing a financial emergency which is short-term
  • Can provide a DD214 and VA Disability Rating Certification or have one in progress
  • Can help us confirm your status by being referred by your Army Wounded Warrior advocate (AW2), Recovery Care coordinator (RCC), VA doctor or social worker, or another nonprofit advocacy organization

The Military Heroes Fund also gives grants to caregivers who:

  • Are a Family member and/or caregiver of an Operation Iraqi Freedom (OIF) or Operation Enduring Freedom (OEF) veteran
  • Can provide a DD214 and VA Disability Rating Certification for veteran, or have one in progress
  • Send copy of invoice or estimate for requested services from a licensed/certified individual, institution, or facility on official letterhead
  • Can help us confirm your status by being referred by your Army Wounded Warrior advocate (AW2), Recovery Care coordinator (RCC), VA doctor or social worker, or another nonprofit advocacy organization

The PenFed Foundation continuously examine potential grantees who meet all the above criteria. If you qualify, fill out and return the application form along with copies of your DD214, VA Disability Statement and the bill from the institution or creditor which you need assistance with. (From receipt of all documentation, it can take up to 10 days to process the grant. Grants are paid directly to the creditor.)

For more on the PenFed Foundation go here.

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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.

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