Latest news with #PointsGuy
Yahoo
26-04-2025
- Business
- Yahoo
‘Spaving' has become wildly popular in America — but here's how this trend could be costing you thousands
Collecting loyalty points such as frequent flyer miles and credit card rewards can help you net a variety of perks, from free products to exclusive discounts to premium member tiers. But in many cases, the value of loyalty points is diminishing, making it harder to reach those goals. And that's led to 'spaving,' which could be costing you thousands if you're not careful. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Points aren't as generous as they used to be, according to a Bloomberg report, citing examples such as which cut the value of its loyalty program from 10% of money spent to 2%. In other words, you now have to spend more money to unlock status or save more points to book a flight. And it can be addictive. 'Once you get status and see what that unlocks, like extra baggage allowance, that can be a really nice feeling and it creates emotional attachment to airlines,' Nick Ewen, senior editorial director at the website The Points Guy, told Bloomberg. This has led to 'spaving,' a concept where you spend more to save more. But in some cases, those savings are an illusion — yet companies still gain the benefits of customer loyalty while gleaning valuable data about your behaviors and habits. Spaving tactics encourage you to spend more than you had originally intended so you can 'save' money down the road. This is how many loyalty programs work, where you accumulate points that you can later redeem for rewards, discounts and other perks — like free flights or hotel rooms. But there are other forms of spaving, too. For instance, you might buy multiple items to get a discount — buy two t-shirts and get one free! — even though you only need one. Or you buy more items than you need to 'unlock' free shipping. Or, you book with a certain airline or hotel to get the points, even if it's not the best price (or even the best alternative). But if you end up spending $50 more than you planned to unlock free shipping from an online retailer — and avoid a $10 shipping fee — then you haven't really saved that $10. So why do so many of us still continue to spend more to save more? Spaving by its very nature is addictive, like receiving a treat (points) for a certain behavior (staying loyal to a company). Even if the reward isn't that great — or not as great as it used to be — you want to keep accumulating points to reach that end 'goal,' regardless of whether it makes financial sense. Marketers fuel this behavior by creating a sense of urgency with limited-time deals and, in some cases, with rewards that have an expiration date. Some may also engage in what could be considered unfair practices, such as devaluing rewards you've already earned. Indeed, this led to a probe into airline points, dynamic pricing and hidden fees last year by the U.S. Department of Transportation (USDOT). 'Points systems like frequent flyer miles and credit card rewards have become such a meaningful part of our economy that many Americans view their rewards points balances as part of their savings,' said then-U.S. Transportation Secretary Pete Buttigieg in a statement. For example, the 'true dollar value of rewards is hidden or unpredictable,' according to the USDOT statement, making it easier for airlines to devalue rewards without detection. 'Hiding the dollar value makes it harder to compare the redemption price against the cash price across different rewards.' Read more: This hedge fund legend warns US stock market will crash a stunning 80% — claims 'Armageddon' is coming. Don't believe him? He earned 4,144% during COVID. Here's 3 ways to protect yourself The downside to spaving is that you often end up spending more than you intended and buying items you don't need to 'save' money. This can derail your savings goals and lead to cash flow problems or maxed-out credit cards. Plus, when you buy more than you need, there are hidden costs to that clutter, from duplicate purchases to storage costs. So if you have a spaving habit, how can you make sure it's not wrecking your budget? First off, it helps to have a budget — and to stick with it. Try not to fall prey to limited-time deals (unless it's something you really, really need) and ask yourself if you'd buy that particular item if you weren't getting rewarded for it. If you find you're easily tempted, delete shopping apps on your phone — or, at the very least, turn off push notifications and unsubscribe from newsletters so you don't experience FOMO (the fear of missing out). Avoid storing your payment details on online shopping sites; if you have to take the time to type in a credit card number, you may think twice before buying. Before you buy, try to calculate the cash value of a deal. Many loyalty programs make this difficult — hence, the USDOT probe — but it can help you figure out if a deal is really a deal. For example, if a round-trip flight will cost you either $500 or 20,000 points, divide the cash price by the number of points to understand the value per point. In this case, it would be 2.5 cents per point. Perhaps this is why loyalty is now in flux. The Marigold 2025 Consumer Trends Index, based on responses from more than 10,000 Americans, found that 75% of U.S. consumers will pay more for brands they trust, yet 36% have already jumped ship in the past year. 'To win them back,' the report notes, 'brands must deliver better loyalty programs.' As Ewen points out in the Bloomberg article, consumers who want to avoid the pitfalls of spaving should instead be 'program-agnostic, book the best ticket that is convenient and affordable and not be too loyal to any one company.' Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
Forbes
24-04-2025
- Business
- Forbes
Bilt Rewards Now Lets You Pay Student Loan Debt With Points
What if your most significant monthly expense could also help erase your student loans? That's the promise behind a game-changing update to Bilt Rewards, which will now allow members to use Bilt rewards for student loans. Renters can turn the points earned on rent, an expense that typically yields no rewards, into extra payments toward student debt. "Research shows that student debt is now the second-largest form of consumer debt in America," said Bilt CEO Ankur Jain in a company press release. "By enabling members to redeem Bilt Points toward student loan payments, we're addressing a critical financial need while continuing to differentiate our program as offering the most valuable and flexible points currency in the industry," he added. The program could offer much-needed relief for borrowers, given the volatility in the student loan landscape and the resumption of aggressive student loan debt collections by the Department of Education. Bilt, a loyalty program that lets renters earn points on rent, has launched a new Bilt Wallet integration that enables direct student loan payment redemptions. Bilt's app now features a Student Loans tab in the Bilt Wallet, allowing members to link loans and make payments with points. Members can redeem points via the Bilt app or website by linking their student loan accounts. Bilt rewards for student loans can currently be used with five major servicers – Nelnet, Mohela, Sallie Mae, Aidvantage, and Navient – with more providers expected to be added soon, according to The Points Guy. Every 1,000 points redeemed would translate to $10 off your student loan balance, yielding a value of 1 cent per point. This new option comes as student loan borrowers grapple with ever-growing student debt. Student debt is now the second-largest consumer debt category in the U.S., with over $1.7 trillion owed nationwide. With federal student loan payments recently resuming after a multi-year pause, millions of borrowers are likely seeking help to lighten the load. Bilt's move to let users apply points toward loans directly addresses what CEO Ankur Jain calls a 'critical financial need.' It's a unique approach in the loyalty industry; Bilt points for student loans is a redemption you won't find with other major reward programs, giving those with college debt a new repayment toolkit. Bilt is also one of the only programs that lets you earn points on rent. For many Americans, rent is the most significant monthly expense, yet it usually yields no rewards because most cards charge fees for rent payments. Bilt changed that paradigm by partnering with major landlords and launching the Bilt Mastercard. Today, renters nationwide in over 4.5 million homes can earn points on rent with no fees, and those rent points can directly pay down student loans. This essentially lets renters double dip on life's two most significant expenses, housing, and education, by using rewards from one to chip away at the other. The redemption rate when using Bilt points for student loans is currently slated to be 1 cent per point. In other words, 10,000 points would yield $100 toward reducing your student loans. That's decent, but not the best value Bilt points can offer. Bilt points shine more when used for travel. The Points Guy values Bilt points at roughly 2.05 cents each when transferred to airline or hotel partners, more than double what you get on a loan redemption. If maximizing value is your goal, you can often do much better-using points for flights or hotel stays instead of loans. Of course, not everyone cares about travel rewards. A simple cash-out is more useful for many borrowers; at least here, you get a solid rate. The 1 cent per point for student loans is much better than Bilt's other cash-out options. For example, a regular statement credit yields only roughly 0.55 cents per point per the Frequent Miler, and using points for Amazon or Lyft gives around 0.7 cents. By that measure, paying student loans with points nearly doubles those values. Using points now also means you'll pay off your loan faster and save on interest, effectively boosting your payoff value beyond 1¢ per point. One word of caution. Given the dearth of rewards programs offering rewards points for paying rent, there is little downside to using Bilt for rent payments. However, this does not extend to using the Bilt Mastercard for non-rent payments and purchases. Other credit card reward programs offer more competitive earning and redemption opportunities and should be considered. Indeed, this is one of the reasons why Wells Fargo was said to be losing $10 million a month as the co-branded issuer of the card, according to the Wall Street Journal. Putting Bilt rewards points toward student loans is a welcome new option for consumers focused on paying down debt. It won't always be the best use of your points, but a guaranteed penny-per-point toward your balance might beat waiting for two cent-per-points in travel rewards if you have student loans. This feature turns your rent payments into student loan assistance, a win-win if paying off debt is your priority. If you have student loans, it's worth considering whether it makes sense to put some points toward your balance, especially if you don't have a high-value travel redemption planned. On the other hand, if you're an avid traveler, you might prefer to save your points for an airline or hotel transfer that could double their value. Ultimately, it is refreshing to see a rewards program tackle student debt. By enabling Bilt rewards for student loans, Bilt is letting renters turn everyday spending into real financial relief, a game changer.
Buzz Feed
21-03-2025
- Buzz Feed
Ever Wonder Which Economy Seat Is The Best? Here Are Some Tips
A seat's location in the economy cabin can make a difference in your comfort level. Modern-day air travel is famously not the most comfortable experience. After all, who wants to sit in a cramped seat next to strangers in a pressurized metal tube for hours on end? Big-budget travelers will splurge on upgraded seats in business class or another premium cabin, but unfortunately, most of us can't afford to splash out like that. Still, there are ways to maximize comfort with your economy cabin seat choice. 'The longer the flight, the more important it is to be strategic about your seat assignment,' Zach Griff, a senior reporter at the Points Guy, told HuffPost. So, what's the best economy seat to choose for a long-haul flight? Although the answer can differ from aircraft to aircraft, there are some best practices to keep in mind. Some may seem contradictory; the key is to figure out what you value and prioritize those factors. Below, Griff and other experts share their advice, including some A+ hacks. Maximize your legroom. 'First things first, you'll want to maximize your personal space, which can mean splurging for an extra-legroom seat or strategically selecting a seat that sports a unique configuration, such as the exit row or bulkhead,' Griff said. Even just a little extra space to stretch your legs can make a huge difference on a long-haul flight, so take that into consideration as you choose a seat. Although the exit row offers that nice extra room, avoid the row directly ahead of the exit. 'I'd absolutely avoid the last row or the seats in front of the exit row,' Griff added. 'These seats offer little to no recline, so beware before selecting them.' Even if you can't book a seat with extra space, you can still increase your legroom with careful packing. Try to fit most of your things into your checked bag or the carry-on suitcase that goes in the overhead bin to avoid having a bulky backpack or other stuff at your feet. Increase your chances of sitting by an empty middle seat. 'I do my best to get an aisle seat next to an empty middle seat, or window seat next to an empty middle,' said travel expert and author La Carmina. 'Having an empty middle seat next to me lets me spread out and sleep better.' She increases her chances by looking for three-person rows in which the window seat is already taken and then selecting the empty aisle seat. 'This way, there is now only an empty middle seat available in between, which is less likely to be taken,' she said. 'If I chose an aisle seat in an empty three-person row, chances are that two people who want to sit together might take the other two seats. I also try to choose seats closer to the back, since these tend to fill up last.' Keep an eye out for empty rows. 'Kindness goes a long way with gate agents,' said travel expert and Gaycation Travel Show host Ravi Roth. 'Generally, I ask — nicely — if there is an empty row. If so, take it no matter where it is. Nothing is better than lying flat on an airplane.' La Carmina likes to take matters into her own hands. 'If I notice a few empty rows of seats on the plane, I keep note of the locations,' she said. 'After the plane takes off and the 'Fasten seatbelt' sign goes off, I slip over and take the empty seats without asking the staff.' Assess your proximity to the lavatory and galley. 'You'll want to consider proximity to the galley and lavatories — all things that could get in the way of your comfort and ability to sleep during the flight,' Griff said. 'You'll find these spaces marked accordingly on seat maps, and unless you don't mind being disturbed by lights, noises, and smells, you'll want to avoid these areas.' As the saying goes: location, location, location. Try to choose a seat at least four or five rows away from those high-traffic sections for a more peaceful journey. 'There will be a lot of noise coming from the galley, which is the aircraft 'kitchen,' and there will be foot traffic and unpleasant sounds and smells from the bathroom,' said Collette Stohler, a travel agent with Elite Travel Arrangements and director of marketing at Roamaroo. Remember the bulkhead isn't necessarily the best... The first row of a cabin may seem like an enticing option, but there are a few things to keep in mind before choosing one of those bulkhead seats. Per the previous point, you might be near a noisy galley. There are other potential drawbacks as well. 'Though the bulkhead generally offers more legroom, you may want to steer clear of these seats,' Griff said. 'No one will recline into your personal space, but some drawbacks include misaligned TV screens, fixed armrests, and a lack of under-seat storage. Plus, these seats are generally reserved for parents flying with infants, so it could get quite loud around these seats.' ...and the back of the plane isn't necessarily the worst. 'You'll need to decide if you prefer to sit closer to the front or the back,' Griff said. 'Contrary to popular belief, sitting in the back of the plane actually has a few benefits.' Again, the front of the plane tends to fill up faster than the back, so you could have a less crowded experience in the back. 'I increase my chances of having a free seat, if not a full row next to me, the further back in the plane I'm located,' said Meg Jerrard, cofounder of Solo Female Travelers. 'Seats at the back of the plane will see a decent amount of foot traffic from passengers seeking out the bathrooms, but if I'm asleep by that point because I have a free seat or row next to me, I'm not conscious enough to complain!' Many airlines offer travelers the opportunity to pay a little extra for a seat closer to the front of the plane. Ask yourself if it's worth the added cost. 'If the only free seats that are left are middle seats, and paying for a seat selection is $25, you may be better off just footing the money,' said Victoria Yore, the travel blogger behind Follow Me Away. 'But if there are a variety of free seat selections open that are window or aisle seats, or otherwise your preferred arrangement for seat selection, go ahead and pick the free seat, even if it is in the back of the plane. You are going to have to wait for luggage anyway, and the deplaning process is usually always chaotic. Paying a bunch of money to be 10 rows up doesn't make that much of a difference or save you that much time anyway.' Check for unique layouts. 'I always recommend checking the SeatGuru website ahead of time to find the best seats on your particular aircraft,' Stohler said. Indeed, not all plane layouts are the same, so the configuration might be yet another reason to look toward the back rather than the front. 'Generally, most people assume that sitting closer to the front of the plane will make for a more comfortable flight experience,' Griff said. 'While that's generally true, you'll want to study the seat map when booking your flight. Some planes feature unique 'mini-cabins' with just a few rows of seats. These smaller cabins are often significantly more private and quieter during the flight.' 'Moreover, due to the curvature of some planes, many airlines offer a different seating configuration towards the back of the plane,' he added. 'For instance, instead of a general 3-3-3 layout, you might find a 2-3-2 layout towards the back of the plane. Those seats could be a great option for couples or families traveling together.' Don't forget other location factors. 'Some passengers seem to opt for the middle section near the wings, where they are less likely to feel turbulence, while others want to be near the front for ease of getting off the plane, less engine noise, or even to get a better choice of food available,' said Laura Lindsay, a travel trends and destinations expert at Skyscanner. She pointed to a Skyscanner survey of more than 1,000 regular air travel passengers, which found that the most sought-after seat on a standard aircraft was 6A — a window option near the front. The 'worst' was 31E, a middle seat toward the back of the aircraft. 'Sitting in front of the wing and engines usually makes for a quieter ride,' Griff noted. Examine your window or aisle preference. 'Once you select your desired row, it's up to you to choose an aisle or window seat,' Griff said. 'The former is great for those who like the freedom to stand when they need to, while the latter is great for the views and the ability to rest your head on the fuselage of the plane.' There are pros and cons to each choice, and the experts HuffPost spoke to were divided. Roth is a fan of a window seat to avoid disturbances from the cart service and bathroom line, while Jerrard is all about the aisle. 'While the window seat is better for sleep in that you can rest up against the side of the plane, I prefer the aisle seat, as it allows me to get up and down as much as I like without having to inconvenience anybody,' she explained. 'Being able to move around as you need to is key to staying comfortable on a long-haul journey — keep the blood flowing with regular walks around the aisles.' Those who like to get up and move their bodies may gravitate toward the aisle, but flyers who hate getting bumped into or asked to move are probably window people. 'The window seems a popular choice for those looking to sleep, especially for long-haul flights, while those who take more trips to the toilet prefer the aisle so as not to disturb fellow passengers,' Lindsay added. 'The aisle is also popular for tall passengers looking to stretch their legs.' The calculus may change when you aren't flying alone. 'If you're traveling as a couple, it could make sense to select an aisle and window seat in a given row, with the hopes that the middle remains empty,' Griff said. 'If it doesn't, you can always trade one of your more favorable seats for the middle.' Be warned that the middle seat trade is not a guarantee, however. Zack Bornstein @ZackBornstein losing my mind, just offered the aisle seat to the guy sitting between me and my gf on a flight, and he said he'd rather stay in the middle seat between us 03:09 AM - 08 Dec 2022 Research the type of aircraft. If there are multiple good flight options for your trip, take a look at the different aircraft offerings. You may find more comfortable options on newer planes. 'Frequent flyers have also reported that the left-hand side of the plane is best, as the windows are off-center, allowing for wall space to lean on,' Lindsay noted. Such features can vary, but airline websites and third-party resources can provide information about different types of planes and carriers. 'Delta helped pioneer the 'articulating seat bottom' — that not only moves you slightly forward but also up when reclined, cradling you in the seat for optimal comfort ― without sacrificing legroom,' said Mauricio Parise, vice president of brand experience at Delta Air Lines. He noted that almost all mainline Delta aircraft currently have the articulating seat bottom, and there are plans to update the one exception to match that standard. Other plane features that airlines are exploring include 'pre-reclined' seats and economy bunk beds. Book early. 'More than anything, be sure to select your seat as soon as you book your flight,' Griff said. 'The earlier, the better. If you wait to book your seat, you'll likely find fewer options as departure nears.' Booking with an airline co-branded credit card can also come with preferred seat coupons or a fast track to airline status, which leads to complimentary seat upgrades with more legroom, he added. When you don't get to choose your seat during the booking process, try to check in early. 'If I have an economy seat without prior seat selection, I always check in online as soon as the 24-hour window opens before boarding,' La Carmina said. 'I set an alarm or notification to check in as soon as it's allowed. This way, I have the first choice of available seats.' Don't despair if you're unhappy with the seat you snagged. 'If you didn't snag your ideal seat, ExpertFlyer is a fantastic tool to improve your seat assignment,' Griff noted. 'The web-based software lets you set seat alerts for any flight, and you'll be instantly notified by email and/or text message if your preferred seat eventually opens up.' This article originally appeared on HuffPost. Safe Travels!
