Even Staff

2016-03-16

Interest Is A Budget’s Worst Enemy

interest-is-a-budget’s-worst-enemy

A growing number of Americans are struggling to manage their finances, and few seem to realize how easy it is to reduce one critical part of a typical monthly budget. According to NerdWallet, the average U.S. household is paying a total of $6,658 per year in interest alone! Broken down, that amounts to $554 per month that Americans pay and get nothing in return. The good news is, even if it will take you years to pay off the principal of your debts, there are several easy ways to minimize your monthly interest payments.

 

Refinance your mortgage

 

Mortgages are such a large debt to take on that most people make sure to get the best interest rate at the time they take out their mortgage. However, interest rates change over time and even a 1.0% drop in interest rates came mean thousands of dollars saved on a six-figure mortgage. The Federal Reserve recently issued its first rate hike from historically-low levels since the Financial Crisis, and rates will likely continue to rise in coming years. If you haven’t taken the time to refinance your mortgage in recent years, now may be your last chance to take advantage of cyclically-low rates.

 

Improve your credit

 

Sometimes, something as simple as growing older or moving to a different zip code can allow you to qualify for lower interest rates on loans. However, improving your credit score is one sure-fire way to qualify for lower-rate loans. To boost your credit score, make sure to make payments on time and be mindful of your debt-to-credit ratio (the lower the better).

 

Consolidate and prioritize your debt payments

 

Credit card debt is usually the worst type of debt to carry in terms of interest rates. The average credit card rate is currently around 15%, much higher than mortgage, student loan or private loan rates. By taking out a private loan from an online lender like Prosper or Lending Club, you can pay off your high-rate credit card debt and replace it with a single lower-rate loan. Any debts that remain should be prioritized in terms of their interest rates, not by the size of the balance, and higher-rate debt should always be paid off first.

 

Take advantage of card promotions

 

What’s even better than paying lower interest rates? Paying no interest at all. To get some breathing room in the short-term, look for credit cards that offer extended interest-free promotions and no balance transfer fees. The Chase Slate card currently offers an introductory 0% APR for 15 months and no balance transfer fee for 60 days.

 

Takeaway

 

Life has plenty of expenses, but at least when you pay the electricity bill or do the grocery shopping, you are getting products or services in return. Money spent on interest is completely wasted, and yet Americans are still paying $554 per month in interest alone. The first step to eliminating your debt burden is to stop the bleeding from high interest rates. You might be surprised how far an extra $554 per month could go.

Disclamer: The material provided on this site is not intended to provide legal, investment, or financial advice or to indicate the suitability of any Even Financial product or service to your unique circumstances. For specific advice about your unique circumstances, you may wish to consult a qualified professional. Any information or statistical data sourced by Even Financial through hyperlinks, from third-party websites, are provided for informational purposes only. Although we promote products and services form our partners, our opinions are our own.

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Goldman Sachs-backed Even Financial, a digital matchmaker between banks and customers, just bought an insurance startup as life insurers are seeing policy applications boom

Even Financial has acquired LeapLife, a leading insurtech platform. The addition of LeapLife allows Even to immediately commence its insurance capabilities, aimed at simplifying and enhancing the way consumers search, compare, and get matched with insurance policies (LeapLife’s existing platform will continue to operate from leaplife.com). Business Insider wrote an article about it, interviewing our CEO and Founder Phill Rosen.

Even Financial Launches Insurance Offerings With Strategic Acquisition of LeapLife, a Leading Insurtech Platform

Pioneering B2B Fintech Expands its Industry-Leading Financial Services Monetization Platform to Help Insurance Carriers Find and Connect with Consumers New York, New York – April 22, 2020 – Even Financial (Even), the leading API for financial services search, acquisition, and monetization, announced today that it will be launching services for the insurance industry through the acquisition of LeapLife, an insurtech platform and digital life insurance agency.  The addition of LeapLife allows Even to immediately commence its insurance capabilities, aimed at simplifying and enhancing the way consumers search, compare, and get matched with insurance policies (LeapLife’s existing platform will continue to operate from leaplife.com). Even and LeapLife now offer the only full end-to-end, multi-carrier digital life insurance marketplace experience. Over the coming weeks, Even will further integrate LeapLife’s technology and insurance offering into its industry-leading API, making turnkey insurance marketplaces programmatically available to a vast network of channel partners — when and where their consumers are most in need — while also enabling the company to expand to other insurance sectors, including homeowners, renters and auto insurance. This adds to Even’s peerless breadth of real-time, personalized financial product offers — an expansive suite that already includes loans, savings, credit cards, and more.  “Even’s goal to evolve how financial institutions find and connect with consumers is not limited to loans or credit cards, but applicable to all financial products and services, including insurance,” said Phill Rosen, Even Founder and CEO. “Despite its importance, purchasing life insurance is often an overwhelming and inconvenient experience. With more than $600 billion in premiums paid each year, and only 6% of policies sold completely online, we see tremendous opportunities to help modernize the life insurance industry and offer solutions that solve challenges for consumers and carriers alike.”  LeapLife is an established insurtech platform and digital life insurance agency that utilizes data science, deep underwriting knowledge, and proprietary technology, enabling consumers to apply for instant-decision life insurance policies with real-time quotes. LeapLife works with many best-in-class insurance carriers to offer consumers a seamless experience from beginning to end. This approach made Even and Leaplife a perfect match. As a digital insurance broker, LeapLife offers personalized life insurance recommendations based on a consumer’s unique needs. Paired with the Even API, which enables customer acquisition for insurance to be native and programmatic, consumers benefit from a more streamlined, transparent, and highly personalized experience when shopping for life insurance.  Just as Even’s 2018 acquisition of Birch (the award-winning credit card rewards app) allowed the company to accelerate its expansion into credit cards, the addition of LeapLife will similarly put Even at the forefront of consumer insurance offerings.  Charles Svirk of MassMutual Ventures, an investor in Even, said “The Even and LeapLife teams share a vision that the future of insurance acquisition will rely on the power of data-driven, programmatic distribution. We are thrilled to support them as their industry experience, impressive technology, and trusted relationships will help scale Even’s insurance offering and build partnerships to provide these critical innovations in insurance acquisition.” The Even API and platform solve significant, long-standing pain points in financial services acquisition by seamlessly connecting supply and demand. Even has continued its rapid growth trajectory in 2020, surpassing over $1.5 billion in credit issued through its API and expanding its platform to over 400 partners. Even has secured over $55 million in funding from major financial institutions, venture capital firms, and fintechs to back its goal to evolve the financial services acquisition ecosystem.   About Even Financial Founded in 2015, Even Financial is a B2B fintech company that is transforming the way financial institutions find and connect with consumers. By seamlessly bridging financial institutions (including American Express, Goldman Sachs, and SoFi) and channel partners (such as TransUnion and The Penny Hoarder) via its industry-leading API, Even turns any consumer touchpoint into an ROI-driven, fully customizable, programmatic acquisition source for financial product offers with full compliance, security, and scale across loans, savings, credit cards, insurance, and more. Even is backed by leading financial services firms and VCs including American Express Ventures, Canaan Partners, Citi Ventures, F-Prime Capital (Fidelity), Greatpoint Ventures, Goldman Sachs, LendingClub, and MassMutual Ventures. Even is the leading search, comparison, and recommendation engine for financial services. Media Contact: media@evenfinancial.com

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Our CEO and Founder Phillip Rosen was included in the most recent Protocol Braintrust newsletter along with answers from some thought leaders from Plaid, Slack, and DuckDuckGo!