Latest news with #SoLo
Yahoo
a day ago
- Business
- Yahoo
3 tips for planning your summer budget
Rodney Williams, SoLo co-founder and president, joins Wealth with Yahoo Finance Senior Reporter Allie Canal to explain how Americans are planning to spend their money this summer. Watch the video above to hear Williams's top tips for summer budgeting. To watch more expert insights and analysis on the latest market action, check out more Wealth here. According to KPMG's summer consumer spending polls, Americans are planning to cut back this season, spending less on travel, dining out, entertainment, and even personal care and apparel. Joining us with some more summer budgeting tips is Ronnie Williams. He's a co-founder and president of Solo. So, Ronnie, uh, summer can be expensive. What are some of the, uh, categories or things that people tend to overlook this time of year? Well, they definitely overlook the, uh, the personal expenses to see Beyoncé. Yeah, which I did a little bit. We all did a little bit. I try to be good. Um, but it's tough, right? Yes. Um, the best thing about summer spending, but it is spending on family, it is spending on the things you really want to do, and maybe going to the beach, and um, but all of these things can can add up and cause big problems if you're not budgeting correctly and you're not looking for savings wherever you can. And what about air conditioning, too? I mean, that always hits me. I never realize how much I'm actually using until it's too late and I have to pay the bill. You know, that's why I think spending is going to decrease this summer, because at the end of the day, uh, our our cost of living is increasing during the summer. That means AC, that means travel cost does actually, um, increase, meaning sometimes gas is more expensive. Um, and some of these things you aren't necessarily budgeting or planning for. So when they happen and they wipe out your savings, or they wipe out, um, something that you wanted to do as a luxury, it can cause a problem. And your report found that unplanned expenses cost the average American family about $2,000 a year. What's one smart move that people can make to try and avoid that trap? Your emergency fund. Now, I know everyone doesn't hear the save to save, and especially during the summer when you want to go out and have fun with your friends and family, but saving is important and that emergency fund is needed. That flat tire can derail you from work. Um, that car breaking down, or even just a a a sick a sick pet, um, going to the the vet could cause an issue. How about credit cards? Because I always try and utilize my credit card points to the best of my ability. Are there ways that tips and tricks that you can use to make sure you're getting the most out of your cards? Yeah, it's a double-edged sword, right? Um, great points, great travel perks, but you should not keep a balance. So if you're going to spend on your credit card, try to pay it off as soon as possible. You don't want that, uh, that fun vacation to haunt you during the winter as you come up to Christmas. And that's the that's the that's the the cash strategy. No.
Yahoo
a day ago
- Business
- Yahoo
3 tips for planning your summer budget
Rodney Williams, SoLo co-founder and president, joins Wealth with Yahoo Finance Senior Reporter Allie Canal to explain how Americans are planning to spend their money this summer. Watch the video above to hear Williams's top tips for summer budgeting. To watch more expert insights and analysis on the latest market action, check out more Wealth here.
Yahoo
20-03-2025
- Business
- Yahoo
Why cash poor Americans often fail to get ahead, and how two are trying to beat the odds.
Ilaria D'Anca, 44, in Mesa, Arizona felt that she had everything going for her with a graduate degree in advertising and public relations, with honors. She worked 20 years as a healthcare executive, earning as much as six-figure salaries for half of those years. But between 2016-2019, she hit a rough patch that included a career change, an unprecedented flooding of her home and property, a legal battle and a falling out with family members that depleted her savings. 'I had an 806 credit score and nearly $150,000 saved in bank accounts prior to this financial crisis,' she said. 'I went through every penny of it. We had three vehicles re-possessed and lost our home to foreclosure.' 'Bad financial products,' she said, worsened her situation. 'Before this experience, I had no idea of the existence of these. I had 3 traditional mortgages and government-backed school loans prior.' When you're down and out, the last thing you need is another blow to the knees. But that's exactly what an increasing number of Americans, including those in the middle class, say they feel when they need access to short-term cash. To cover unexpected medical bills, car repairs or other surprise expenses, Americans living paycheck-to-paycheck often turn to expensive short-term loans that can further erode their finances, according to community finance platform SoLo's 2025 Cash Poor Report. Americans paid more than $39 billion, or 34% more than in 2023, in fees to borrow money to pay their unexpected expenses, SoLo said. Fees were on top of the advertised Annual Percentage Rate (APR), which often already reaches into the 20% range and higher for credit cards, it said. Cash-poor Americans, or those who don't have enough liquid cash on hand to cover unplanned expenses, often used some of the following to cover the average $1,825 emergency last year, it said. Subprime credit cards: The most expensive option, with an average cost of 48%, up from 41% in 2023. Maximum fees can reach 90% of the principal borrowed, driven by high total fees, penalties, and monthly maintenance fees. Payday loans: The average cost is 35%, up from 33% in 2023. Maximum costs reached 67%, fueled by origination fees, late fees, and penalties. Buy now pay later, or BNPL: A relatively affordable option that allows people to pay in installments. It has minimum fees averaging just 2%. However, costs can climb to 45% due to interest and additional fees. Earned wage access, or EWA: Tapping into your earned wages before payday has one of the lowest average borrowing costs at 13%, but fees can rise to 26% if including optional tipping and transaction charges. Bank small-dollar loans: Growing in popularity, these are typically less than $1,000 and repaid in a few weeks or months. Average borrowing costs were 25% in 2024, with a minimum fee of 12%, mostly because of mandatory account balance and deposit requirements. P2P, or peer-to-peer, loans: The most affordable option in terms of aggregate borrowing costs, but average costs may reach 17% due to tips and late fees. Friends & family: 43% of people surveyed borrowed from friends and family last year. That's up from 38% in 2023. These loans generally have no fees. D'Anca had her first taste of these short-term, high-interest loans when her pickup truck broke down. 'They (lenders) were willing to pay my $2,200 bill for the truck's fuel pumps, but I had to pay it back in full within 3 months, or the interest would go from 0% to 169% with the back 3-months of interest due immediately,' she said. 'Let me tell you, I believe most Americans would take the bad loan over being stuck in a parking lot indefinitely. So, I did.' In the end, the repair on the truck was faulty and caused it to not pass emissions. 'We sold it at bottom-dollar and had only an $1,100 down payment for another vehicle,' she said. Single mom Tenisha James, 47, in Waterbury, Connecticut has had a similar experience. She's always had at least a full-time job but still couldn't make ends meet. She'd miss payments while waiting for her paycheck to clear. Late fees and interest would accrue and end up swallowing most of her money, preventing her from ever making headway. She tried credit cards and considered payday loans, but everything seemed impossible to pay off, she said. James finally settled on EarnIn, an EWA company, which allowed her to 'pick myself up out of debt by paying bills on time,' she said. 'I got caught up and didn't have to pay late fees anymore,' which allowed her more money to pay down debt. EWA companies all operate a little differently, she warned, so people should research them to choose one that works for them. Some charge fees or only allow you to tap small amounts of money until you build a history with them and earn points. Others ask for optional tips or donations. 'Even if I have to pay a fee of $4.95 to get my money faster and use it four times, that's $20,' she said. 'That's still half of the late fees I would pay anyway. So, I'm still saving, and I can put that money towards something else.' The irony, though, is Connecticut has implemented regulations that effectively restrict EWA, which had become her lifeline, James said. She created a Facebook page, Earned Wage Access 4 CT, and a petition urging legislators to reverse the regulations. Meantime, she's back to struggling to pay her bills on time. Paycheck-to-paycheck living is often associated with working class Americans, but many middle-class Americans, including those with college degrees, those who own homes, people who are investors, and those who have six-figure incomes, are also 'cash-poor,' SoLo said in its survey of 2,000 adults. One in seven cash-poor Americans makes over $75,000 a year, it said. More than half (54%) of cash-poor Americans are women; while two-thirds are millennials and Gen X. Gen X is comprised of those born between 1965 and 1980, while millennials were born between 1981 and 1996, SoLo said. Forty-percent, like James, work full-time and 14% are Black American, SoLo said. 'Being cash poor is a way of life for most Americans, this creates vulnerability in being able to manage variable and unplanned expenses,' said Rodney Williams, president and co-founder of SoLo. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday. This article originally appeared on USA TODAY: Odds are against those living paycheck to paycheck. How two are trying Sign in to access your portfolio
Yahoo
20-03-2025
- Business
- Yahoo
Why cash poor Americans often fail to get ahead, and how two are trying to beat the odds.
Ilaria D'Anca, 44, in Mesa, Arizona felt that she had everything going for her with a graduate degree in advertising and public relations, with honors. She worked 20 years as a healthcare executive, earning as much as six-figure salaries for half of those years. But between 2016-2019, she hit a rough patch that included a career change, an unprecedented flooding of her home and property, a legal battle and a falling out with family members that depleted her savings. 'I had an 806 credit score and nearly $150,000 saved in bank accounts prior to this financial crisis,' she said. 'I went through every penny of it. We had three vehicles re-possessed and lost our home to foreclosure.' 'Bad financial products,' she said, worsened her situation. 'Before this experience, I had no idea of the existence of these. I had 3 traditional mortgages and government-backed school loans prior.' When you're down and out, the last thing you need is another blow to the knees. But that's exactly what an increasing number of Americans, including those in the middle class, say they feel when they need access to short-term cash. To cover unexpected medical bills, car repairs or other surprise expenses, Americans living paycheck-to-paycheck often turn to expensive short-term loans that can further erode their finances, according to community finance platform SoLo's 2025 Cash Poor Report. Americans paid more than $39 billion, or 34% more than in 2023, in fees to borrow money to pay their unexpected expenses, SoLo said. Fees were on top of the advertised Annual Percentage Rate (APR), which often already reaches into the 20% range and higher for credit cards, it said. Cash-poor Americans, or those who don't have enough liquid cash on hand to cover unplanned expenses, often used some of the following to cover the average $1,825 emergency last year, it said. Subprime credit cards: The most expensive option, with an average cost of 48%, up from 41% in 2023. Maximum fees can reach 90% of the principal borrowed, driven by high total fees, penalties, and monthly maintenance fees. Payday loans: The average cost is 35%, up from 33% in 2023. Maximum costs reached 67%, fueled by origination fees, late fees, and penalties. Buy now pay later, or BNPL: A relatively affordable option that allows people to pay in installments. It has minimum fees averaging just 2%. However, costs can climb to 45% due to interest and additional fees. Earned wage access, or EWA: Tapping into your earned wages before payday has one of the lowest average borrowing costs at 13%, but fees can rise to 26% if including optional tipping and transaction charges. Bank small-dollar loans: Growing in popularity, these are typically less than $1,000 and repaid in a few weeks or months. Average borrowing costs were 25% in 2024, with a minimum fee of 12%, mostly because of mandatory account balance and deposit requirements. P2P, or peer-to-peer, loans: The most affordable option in terms of aggregate borrowing costs, but average costs may reach 17% due to tips and late fees. Friends & family: 43% of people surveyed borrowed from friends and family last year. That's up from 38% in 2023. These loans generally have no fees. D'Anca had her first taste of these short-term, high-interest loans when her pickup truck broke down. 'They (lenders) were willing to pay my $2,200 bill for the truck's fuel pumps, but I had to pay it back in full within 3 months, or the interest would go from 0% to 169% with the back 3-months of interest due immediately,' she said. 'Let me tell you, I believe most Americans would take the bad loan over being stuck in a parking lot indefinitely. So, I did.' In the end, the repair on the truck was faulty and caused it to not pass emissions. 'We sold it at bottom-dollar and had only an $1,100 down payment for another vehicle,' she said. Single mom Tenisha James, 47, in Waterbury, Connecticut has had a similar experience. She's always had at least a full-time job but still couldn't make ends meet. She'd miss payments while waiting for her paycheck to clear. Late fees and interest would accrue and end up swallowing most of her money, preventing her from ever making headway. She tried credit cards and considered payday loans, but everything seemed impossible to pay off, she said. James finally settled on EarnIn, an EWA company, which allowed her to 'pick myself up out of debt by paying bills on time,' she said. 'I got caught up and didn't have to pay late fees anymore,' which allowed her more money to pay down debt. EWA companies all operate a little differently, she warned, so people should research them to choose one that works for them. Some charge fees or only allow you to tap small amounts of money until you build a history with them and earn points. Others ask for optional tips or donations. 'Even if I have to pay a fee of $4.95 to get my money faster and use it four times, that's $20,' she said. 'That's still half of the late fees I would pay anyway. So, I'm still saving, and I can put that money towards something else.' The irony, though, is Connecticut has implemented regulations that effectively restrict EWA, which had become her lifeline, James said. She created a Facebook page, Earned Wage Access 4 CT, and a petition urging legislators to reverse the regulations. Meantime, she's back to struggling to pay her bills on time. Paycheck-to-paycheck living is often associated with working class Americans, but many middle-class Americans, including those with college degrees, those who own homes, people who are investors, and those who have six-figure incomes, are also 'cash-poor,' SoLo said in its survey of 2,000 adults. One in seven cash-poor Americans makes over $75,000 a year, it said. More than half (54%) of cash-poor Americans are women; while two-thirds are millennials and Gen X. Gen X is comprised of those born between 1965 and 1980, while millennials were born between 1981 and 1996, SoLo said. Forty-percent, like James, work full-time and 14% are Black American, SoLo said. 'Being cash poor is a way of life for most Americans, this creates vulnerability in being able to manage variable and unplanned expenses,' said Rodney Williams, president and co-founder of SoLo. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday. This article originally appeared on USA TODAY: Odds are against those living paycheck to paycheck. How two are trying
USA Today
20-03-2025
- Business
- USA Today
Why cash poor Americans often fail to get ahead, and how two are trying to beat the odds.
Why cash poor Americans often fail to get ahead, and how two are trying to beat the odds. Show Caption Hide Caption Americans owing record credit card debt are carrying debt for longer Will the potential federal interest rate cuts help Americans unload credit card debt in the second half of 2024? Scripps News Ilaria D'Anca, 44, in Mesa, Arizona felt that she had everything going for her with a graduate degree in advertising and public relations, with honors. She worked 20 years as a healthcare executive, earning as much as six-figure salaries for half of those years. But between 2016-2019, she hit a rough patch that included a career change, an unprecedented flooding of her home and property, a legal battle and a falling out with family members that depleted her savings. 'I had an 806 credit score and nearly $150,000 saved in bank accounts prior to this financial crisis,' she said. 'I went through every penny of it. We had three vehicles re-possessed and lost our home to foreclosure.' 'Bad financial products,' she said, worsened her situation. 'Before this experience, I had no idea of the existence of these. I had 3 traditional mortgages and government-backed school loans prior.' What are 'bad financial products'? When you're down and out, the last thing you need is another blow to the knees. But that's exactly what an increasing number of Americans, including those in the middle class, say they feel when they need access to short-term cash. To cover unexpected medical bills, car repairs or other surprise expenses, Americans living paycheck-to-paycheck often turn to expensive short-term loans that can further erode their finances, according to community finance platform SoLo's 2025 Cash Poor Report. Americans paid more than $39 billion, or 34% more than in 2023, in fees to borrow money to pay their unexpected expenses, SoLo said. Fees were on top of the advertised Annual Percentage Rate (APR), which often already reaches into the 20% range and higher for credit cards, it said. Cash-poor Americans, or those who don't have enough liquid cash on hand to cover unplanned expenses, often used some of the following to cover the average $1,825 emergency last year, it said. Subprime credit cards: The most expensive option, with an average cost of 48%, up from 41% in 2023. Maximum fees can reach 90% of the principal borrowed, driven by high total fees, penalties, and monthly maintenance fees. Payday loans: The average cost is 35%, up from 33% in 2023. Maximum costs reached 67%, fueled by origination fees, late fees, and penalties. Buy now pay later, or BNPL: A relatively affordable option that allows people to pay in installments. It has minimum fees averaging just 2%. However, costs can climb to 45% due to interest and additional fees. Earned wage access, or EWA: Tapping into your earned wages before payday has one of the lowest average borrowing costs at 13%, but fees can rise to 26% if including optional tipping and transaction charges. Bank small-dollar loans: Growing in popularity, these are typically less than $1,000 and repaid in a few weeks or months. Average borrowing costs were 25% in 2024, with a minimum fee of 12%, mostly because of mandatory account balance and deposit requirements. P2P, or peer-to-peer, loans: The most affordable option in terms of aggregate borrowing costs, but average costs may reach 17% due to tips and late fees. Friends & family: 43% of people surveyed borrowed from friends and family last year. That's up from 38% in 2023. These loans generally have no fees. Hard lessons D'Anca had her first taste of these short-term, high-interest loans when her pickup truck broke down. 'They (lenders) were willing to pay my $2,200 bill for the truck's fuel pumps, but I had to pay it back in full within 3 months, or the interest would go from 0% to 169% with the back 3-months of interest due immediately,' she said. 'Let me tell you, I believe most Americans would take the bad loan over being stuck in a parking lot indefinitely. So, I did.' In the end, the repair on the truck was faulty and caused it to not pass emissions. 'We sold it at bottom-dollar and had only an $1,100 down payment for another vehicle,' she said. Single mom Tenisha James, 47, in Waterbury, Connecticut has had a similar experience. She's always had at least a full-time job but still couldn't make ends meet. She'd miss payments while waiting for her paycheck to clear. Late fees and interest would accrue and end up swallowing most of her money, preventing her from ever making headway. She tried credit cards and considered payday loans, but everything seemed impossible to pay off, she said. James finally settled on EarnIn, an EWA company, which allowed her to 'pick myself up out of debt by paying bills on time,' she said. 'I got caught up and didn't have to pay late fees anymore,' which allowed her more money to pay down debt. EWA companies all operate a little differently, she warned, so people should research them to choose one that works for them. Some charge fees or only allow you to tap small amounts of money until you build a history with them and earn points. Others ask for optional tips or donations. 'Even if I have to pay a fee of $4.95 to get my money faster and use it four times, that's $20,' she said. 'That's still half of the late fees I would pay anyway. So, I'm still saving, and I can put that money towards something else.' The irony, though, is Connecticut has implemented regulations that effectively restrict EWA, which had become her lifeline, James said. She created a Facebook page, Earned Wage Access 4 CT, and a petition urging legislators to reverse the regulations. Meantime, she's back to struggling to pay her bills on time. Who are the cash poor? Paycheck-to-paycheck living is often associated with working class Americans, but many middle-class Americans, including those with college degrees, those who own homes, people who are investors, and those who have six-figure incomes, are also 'cash-poor,' SoLo said in its survey of 2,000 adults. One in seven cash-poor Americans makes over $75,000 a year, it said. More than half (54%) of cash-poor Americans are women; while two-thirds are millennials and Gen X. Gen X is comprised of those born between 1965 and 1980, while millennials were born between 1981 and 1996, SoLo said. Forty-percent, like James, work full-time and 14% are Black American, SoLo said. 'Being cash poor is a way of life for most Americans, this creates vulnerability in being able to manage variable and unplanned expenses,' said Rodney Williams, president and co-founder of SoLo. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
