Latest news with #monthlypayments
Yahoo
6 days ago
- Automotive
- Yahoo
Why Car Payments Are the New Credit Card Debt Trap
Struggling with debt is never fun. Whether it's credit cards, auto loans or something else, those monthly payments can cause a lot of financial stress. But while many experts agree that high-interest credit card debt is still a major problem, car payments are also becoming a debt trap for many consumers. Find Out: Read Next: Comparing Credit Cards and Auto Loans Auto loans are a type of secured debt, meaning you need collateral — in this case, a vehicle — in exchange for a loan. As long as you make those monthly payments and pay off what you owe, you'll eventually own the vehicle. Failing to pay could mean losing the collateral. Credit cards are unsecured. This means you won't have to worry about losing an asset if you fall behind on payments. You're still responsible for repayment. In some ways, this makes credit cards the less-risky option. However, it doesn't make them cheap. According to a Q1 2025 Experian report, here's the typical monthly payment for auto loans: $745 for a new vehicle $521 for a used vehicle Payment amounts vary based on factors like interest rate, loan amount, repayment term and credit score. But what about credit cards? According to another recent Experian report, the typical monthly payment is $181. The typical auto loan amount is $41,720 for a new car and $26,144 for a used car. The average credit card balance, meanwhile, is $6,618. See More: Car Payments Are Much More Costly As you can see, the average consumer spends between $340 and $564 more each month on their auto loan than they do on their credit card payment. That's a hefty amount, especially when you consider the average income. According to the Bureau of Labor Statistics, the median weekly earnings of full-time workers is just $1,196. Assuming someone works 52 weeks a year, that's about $62,192 annually — or $5,183 monthly. Using these figures, here's how much people are spending on their car payments and credit cards (broken down into percentages): For credit cards: 3% ($181 out of $5,183) For a new car loan: 14% ($745 out of $5,183) For a used car loan: 10% ($521 out of $5,183) This isn't to say that credit cards are 'less dangerous' than auto loans, however. It simply means there's a higher risk of falling into unmanageable debt with a new or used car loan. The Debt Trap of Auto Loans The debt trap isn't only about the numbers. After all, credit cards can be problematic for your finances. But when you get a car, you have to worry about other things — like negative equity, depreciation and long-term maintenance costs. 'With car loans, people don't always look at the full amount of the debt, but just the monthly payment. If you have a car loan that is over a period of six to eight years, it is [easy] for the car to become over-encumbered, i.e., you owe more than the car is worth,' said Ashley Morgan, attorney at Ashley F. Morgan Law PC. While you might be able to sell or trade in a vehicle that's too expensive to maintain, that alone won't always solve your financial issues. Say you have a vehicle with a significant amount of negative equity — meaning you owe more than the vehicle's value. You might still owe money on the loan once you've gotten rid of the car it's attached to. And if you need to buy another vehicle — even if it's a cheaper one — you could end up owing on two loans. Auto Loans May Not Qualify for Relief Not only is the monthly payment typically higher for auto loans, but you might not qualify for debt relief like you would with credit cards. 'Auto loans are secured by the vehicle itself, so if you stop making payments, repossession becomes a real risk,' said April Lewis-Parks, communications/public relations director at Consolidated Credit. 'Since there's no collateral tied to credit cards, nonprofit agencies have more flexibility in helping you find a path forward.' This doesn't mean credit card debt is easy to handle. But when you consider how much people typically owe in credit card debt versus auto loans, it's easy to see how those car payments can quickly become a debt trap. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard How Much Money Is Needed To Be Considered Middle Class in Your State? 10 Used Cars That Will Last Longer Than the Average New Vehicle This article originally appeared on Why Car Payments Are the New Credit Card Debt Trap
Globe and Mail
21-07-2025
- Business
- Globe and Mail
Scotia Global Asset Management announces July 2025 cash distributions for Scotia ETFs
TORONTO, /CNW/ - Scotia Global Asset Management announced today the July 2025 cash distributions for the Scotia ETFs listed on the Cboe Canada exchange, which pay on a monthly basis. Unitholders of record on July 28, 2025 will receive a cash distribution payable on August 5, 2025, as noted below.
Yahoo
17-07-2025
- Business
- Yahoo
Larimer County property taxes can now be paid monthly. Here's how the service works.
Larimer County property owners who would prefer to pay their property taxes monthly rather than through the usual lump-sum payments billed once or twice a year now have the option to do so, County Treasurer and Public Trustee Irene Josey said in a July 17 news release. EscrowTaxes by Autoagent, a tax payment escrow service not associated with the county or its treasurer, allows homeowners to make monthly payments on their property taxes for a small fee, the news release said. Payments are made automatically through credit cards or bank accounts that users connect to their accounts, according to the EscrowTaxes website. As a participating entity, EscrowTaxes will have access to the tax bills of homeowners who sign up for its services and will ensure the county receives payment prior to all due dates. Enrolled users receive monthly notifications from EscrowTaxes, which automatically adjusts the monthly payments if the tax bill changes and notifies users of that adjustment. EscrowTaxes is "a secure and accurate tax payment system specifically designed for homeowners, taxpayers, property managers, and landlords, with bank-level encryption," reads the news release from Josey's office that was distributed via email by county spokesperson Tom Clayton. Coloradoan reporter Kelly Lyell can be reached at KellyLyell@ Follow him on and This article originally appeared on Fort Collins Coloradoan: Larimer County property taxes now can be paid through EscrowTaxes Solve the daily Crossword
Globe and Mail
11-07-2025
- Business
- Globe and Mail
This 3 Stock Portfolio Provides Monthly Income
While most stocks pay quarterly dividends, investors can still construct a portfolio that allows them to get paid monthly. For example, the first stock pays dividends in January, April, July, and October. The second stock pays out in February, May, August, and November. And finally, the third stock will pay its dividend in March, June, September, and December. So, investors can reap steady monthly paydays with just a little positioning. A combination of Coca-Cola KO, Caterpillar CAT, and McDonald's MCD shares would provide precisely the blend needed for this portfolio. Let's take a closer look at each one. Coca-Cola Gains Market Share Shares were up nicely following its latest set of better-than-expected results, with the stock also sporting a favorable Zacks Rank #2 (Buy). As shown below, analysts have upwardly revised their EPS expectations higher nearly across the board over recent months, with the one exception being a small downward revision concerning its next quarterly release. Concerning headline figures in its latest release, adjusted EPS grew 5% to $0.77, with the company also gaining value share in total nonalcoholic ready-to-drink (NARTD) beverages. The company is also a member of the elite Dividend Aristocrats group, further underpinning its dividend reliability. Caterpillar Keeps Paying Caterpillar is the world's largest construction equipment manufacturer. We see its iconic yellow machines at nearly every construction site. Like KO, the company is a member of the elite Dividend Aristocrats group, with shares currently yielding 1.4% annually. While the current yield may be on the lower end, Caterpillar's 7.9% five-year annualized dividend growth rate picks up the slack. Below is a chart illustrating the company's dividends paid on a quarterly basis. McDonald's Keeps Growing We're all familiar with the restaurant titan McDonald's, seeing those golden arches at seemingly every stop. Analysts have modestly upped their EPS expectations across the board over recent months, a positive sign concerning near-term share performance. MCD shares presently yield 2.5% annually paired with a payout ratio sitting at 61% of the company's earnings. Dividend growth has been solid, with MCD sporting a 8.4% five-year annualized dividend growth rate. Bottom Line Investors love dividends, as they provide a nice buffer against the impact of drawdowns in other positions and provide a passive income stream. And while most companies pay their dividends on a quarterly basis, investors can construct a portfolio that allows for monthly payouts with just a bit of positioning. For those interested in this type of portfolio, the combination of all three stocks above – Coca-Cola KO, Caterpillar CAT, and McDonald's MCD – would provide the necessary blend needed. #1 Semiconductor Stock to Buy (Not NVDA) The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow. One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Caterpillar Inc. (CAT): Free Stock Analysis Report CocaCola Company (The) (KO): Free Stock Analysis Report McDonald's Corporation (MCD): Free Stock Analysis Report
Yahoo
08-07-2025
- Automotive
- Yahoo
Pay-monthly insurance options offer fair value, company bosses tell MPs
Bosses from major insurers have told MPs that customers opting to pay in monthly instalments rather than a lump sum upfront are being charged fairly for their cover. Appearing before the Treasury Committee, the bosses highlighted the admin costs and credit risks to firms when customers pay monthly for their cover. Concerns have been raised by consumer group Which? and others that some people are paying significantly more to split their insurance costs monthly. Jason Storah, CEO, UK general insurance at Aviva, told the hearing: 'We think that we charge a fair amount and just to bring it to life, on a £500 motor policy, a customer that is paying monthly will pay about £3 a month in the financing.' Mr Storah told MPs the insurer is not making any real money on the financing of pay-monthly products. Asked if he was confident his motor finance charges are reasonable, Alistair Hargreaves, CEO, UK insurance at Admiral Group, said: 'Yes, so our motor finance charges similarly are at the lower end of the range… they compare favourably to other sources of finance. 'In terms of when a consumer buys insurance, most of our customers and most customers for example in motor and home go on price comparison. And for most of the price comparison sites if they select to pay monthly they're looking at a monthly payment, they include the instalment charge as well as the underlying premium. 'And they, consumers, typically choose one of the cheapest three providers. 'So in addition to looking at the cost, we're also keen to be competitive. We've been very successful by being very competitive for consumers and getting to those top three slots in order that we can serve more customers.' Mr Hargreaves said: 'We look at fair value and when we look at annual customers and monthly payers the profitability on both groups of customers is very similar. 'So we look at the overall package to make sure that what customers are paying is fair.' Jon Walker, CEO, Axa Commercial, said: 'I have a similar position to Mr Hargreaves and Mr Storah on behalf of Axa. 'We believe offering an instalment option is a service that is good for customers.' He said: 'Relatively speaking, earnings from instalments represent a pretty small percentage of our overall earnings. 'There are additional costs that are incurred around the administration of providing instalment options, the reporting of it. There's also an element of risk the insurer takes. 'So if there is a period when a customer hasn't made their monthly payment they are still insured.' Asked how many weeks they would keep their insurance for, Mr Walker said: 'It would depend. Typically, a small number of weeks if there was a late payment. 'And obviously there's also a cost to insurers as well in terms of if a client pays upfront then that is money that can be invested and generate investment, income that doesn't exist on an instalment option. So there are real costs to insurers in the industry in providing instalments. But we do think it's a valuable product.' He later added: 'Proportionately, we don't make more money from customers that pay by instalments versus pay upfront.' Asked if not having a lump sum available to pay annually would give a customer a higher risk profile in the first place, attracting a higher overall cost, Mr Hargreaves said: 'In terms of how we assess risk, we use all of the information that a customer provides and 90% of our customers come from comparison sites. So what we're trying to do is we're trying to estimate the claims cost for that customer and price them for that claims cost as competitively as possible. 'If we're not competitive, we won't be top on the price comparison and we won't win the customer. So that's how the process works.' Mr Hargreaves later said: 'How the customer answers the questions will feed through to the price, so we use that information to determine the price. 'But it's within our interests to try and price for the claims risk as competitively as we can because it's a hugely transparent market. So that's really what we're doing. 'And then when we're looking at the profitability, and we analyse the data in all sorts of different ways, annual versus monthly what we see is the overall profitability taking everything into account is level. The customers on our portfolio who pay monthly, we're not making more profit out of them than the annual profits, when we take everything into account.' Mr Storah said: 'We look at over 100 risk factors when determining the premium and monthly versus annual pay is one of those factors. But it's one of 100 and so it has a place but it's relative to a whole load of other factors. The weighting changes depending on the other factors. It's almost like an equaliser on an old stereo system.' Mr Storah added: 'It's a balanced view of all of those risk factors, not an over-indexing on one or another.' Mr Walker said: 'There are a plethora of risk factors that are taken into consideration. This is one of them. So, does it have a role to play? Yes it does but it's in the context of multiple risk factors.'
