Congratulations on your college graduation! Now, get ready for your next milestone: student loan repayment.

Most student loan borrowers get a six-month grace period after graduating or dropping below half-time enrollment. This grace period applies to all federal student loans and some private loans. Monthly payments begin after your grace period. So, if you graduated in May, your student loan bills could start in November.

Student loan payments can make it difficult to find your financial footing, but there are ways to manage them. Spend a few hours taking stock of your student loan situation before your grace period ends. Then, consider strategies to lower your monthly payments.

Here’s your cheat sheet to Student Loan Repayment 101.

Log into your student loan accounts

Review your student loan situation: How much do you owe? What type of loans do you have?

Start by logging into your account on studentaid.gov. On your dashboard, you’ll see how much federal student loan debt you have. In the top-right corner, you’ll see the name of your federal student loan servicer, which is the company the government assigns to manage your repayment.

Create an account on your servicer’s website, too. You’ll manage billing with your servicer. If you have any questions about your student loans, your first step should be calling your servicer’s customer service department.

If you have private student loans, log into your lender’s website to see how much you owe and what your repayment options are. Options vary by lender.

If you’re not sure what type of student loans you have or who your lender is, check your credit report, which may show who holds your debt. You can also contact your school’s financial aid office. They may have records of where your tuition payments came from.

Set up automatic payments

In your servicer account, make sure your contact and billing information are up to date.

Set up student loan autopay to save money and time. For federal student loans, automatic billing will get you a 0.25 percentage point reduction in your interest rate each month. For example, a 5.50% interest rate could be lowered to 5.25%. This could save you money over the life of your loan.

Plus, autopay will help you avoid missing a monthly payment.

Some private lenders also offer an interest rate discount if you set up autopay. Ask your lender if they have this perk.

Choose a repayment plan

Your federal student loan servicer will automatically place you on the standard 10-year repayment plan, which splits your total debt into 120 monthly installments, plus interest.

If you owe a significant sum or your income is low, your monthly payments on the standard plan could be unmanageable. Instead, consider an income-driven repayment (IDR) plan, which caps your monthly payments at 10% to 20% of your discretionary income and potentially extends your repayment term up to 20 or 25 years. The government’s loan simulator can help you estimate monthly and overall payments on different student loan repayment plans.

Currently, borrowers can choose from two IDR plans:

• Saving on a Valuable Education (SAVE).
• Income-Based Repayment (IBR).

Expect major IDR application processing delays. You could be placed into a 60-day or more administrative forbearance after your servicer gets your application, during which payments won’t be due.

Shop around for lower interest rates

You might be able to shrink your monthly student loan payments by refinancing to a lower interest rate. When you refinance, you replace your existing student loan (or loans) with a new loan that ideally has better repayment terms.

If you already have private student loans, there’s no downside to refinancing if you can get a lower interest rate or better repayment terms. You’ll need a credit score at least in the high 600s, steady income and a monthly debt-to-income ratio below 50% to qualify for the lowest rates. A qualified co-signer can also help you get a better rate.

To explore refinancing options, look for lenders that offer pre-qualification with a soft credit check. Soft credit checks won’t ding your credit score, but hard credit checks could.

Think twice before refinancing your federal student loans, even if you can get a lower interest rate. Refinancing will turn your federal loans into private loans. You’ll permanently forfeit federal borrower protections like access to flexible repayment plans, potential student loan forgiveness and generous forbearance policies.

Eliza Haverstock writes for NerdWallet. Email: ehaverstock@nerdwallet.com. Twitter: @elizahaverstock.

The article 2024 College Grads: Get Ready for Student Loan Repayment originally appeared on NerdWallet.

Inflation has slowed and the labor market has softened enough to satisfy the Federal Reserve. That means the central bank is about to cut interest rates.

On Aug. 23, Fed Chair Jerome Powell said, “The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”

In other words, Americans should prepare to finally catch a break when it comes to borrowing to pay for a home, buy a car or open a new credit card. There are also other implications for the health of the broader economy.

Back in March 2022, the Federal Open Markets Committee (FOMC) began to increase the federal funds rate in response to growing inflation. It hiked rates 11 times before finally pausing. The rates, set at 5.25% to 5.50%, haven’t budged since July 2023.

The first cut will almost certainly happen at the Fed’s upcoming meeting scheduled for Sept. 17-18. The futures market’s CME FedWatch Tool now predicts a 87% likelihood that the FOMC will cut the current target rate by 25 basis points; it predicts a 13% likelihood of a larger cut of 50 basis points.

But even if the Fed trims rates next week as expected, the target will still be a long way from the near-zero rate of early 2020 and immediate effects will be muted. Mortgage rates have already been easing in anticipation of a cut, for example, and most consumer credit and lending products are more dependent on your credit score than on the Fed rate. Still, this is viewed as a significant event and could build expectations for more cuts down the road.

So what happens next? NerdWallet writers teamed up to explain how upcoming Fed rate cuts could impact your personal finances and what you can do to prepare.

Credit cards

Sara Rathner, credit cards writer

Credit card interest rates are variable, meaning they adjust up or down shortly after the Fed changes the federal funds rate. So if the Fed lowers interest rates, credit card debt will cost slightly less.

The operative word here is “slightly.” Credit card debt is expensive no matter what the federal funds rate happens to be. Let’s say you have an average balance of $5,000 on a card charging 25% APR. You’ll spend around $1,250 in interest over the course of a year. If your interest rate was 24% instead, that’s just $50 less in interest for the year. Point being, a rate reduction doesn’t translate to a massive savings in interest when it comes to credit cards.

Still, you can use the upcoming Fed news as a reminder to check in on your debt and make a plan to pay it down as aggressively as you can. If you qualify, a balance transfer credit card could give you a year or more without interest. Lower interest rates might make a personal loan a compelling debt consolidation option.

Mortgages

Kate Wood, home and mortgages writer

Mortgage interest rates have already headed lower ahead of any action by the Fed. In April, the average interest rate on a 30-year, fixed-rate loan was 7.04%. August’s average was nearly three-quarters of a percentage point lower, at 6.31%. That 73-basis-point drop is larger than any anticipated rate cut, but rates may push even lower once the central bankers start chopping.

Homeowners with adjustable-rate mortgages or home equity lines of credit (HELOCs) should see savings right away as their interest rates ratchet downward. But lower mortgage interest rates might also be a boon to homeowners with fixed-rate mortgages. Those who bought when rates were higher could finally see a significant benefit from refinancing, while owners who feel tethered by their current low mortgage rates may feel more confident about making a move. Reducing that rate “lock in” effect could put more homes on the market, particularly at the starter-home level.

Prospective home buyers likely feel heartened by the prospect of rate cuts, but a quarter or even half of a percentage point cut from the Federal Reserve shouldn’t cause a sudden drop in mortgage rates, especially with a downward trend already in progress. So, don’t wait on the Fed: Buy when you’re ready, not when interest rates are. While you’re preparing to buy — and during your home search — work on your finances. Continue to pay down high-interest debt, try to build your credit score, don’t take out new loans and keep making on-time payments. That way, when you’re applying for a mortgage, you’ll be in a strong position to get a lender’s best possible interest rate regardless of where prevailing rates are.

Auto loans

Shannon Bradley, auto loans writer

Auto loan interest rates typically follow the path of the Fed rate, but it can take time to see. When car loan rates do begin to fall, will it be a good time to buy or refinance? Here are some considerations to help you decide.

Your APR on a car loan is determined by many factors, such as your credit history, credit score, loan term and vehicle age. Taking time to improve your credit, or to find a slightly used car rather than a new one, is likely to affect your loan rate more than a slight drop in the Fed rate.

From the car-buying perspective, your interest rate is just one part of your monthly payment, which also includes the amount you borrow to pay for the car. In July, the average transaction price for new cars was $48,401, with an average monthly payment of $753. The average listing price for used cars was $25,415. Car prices have improved compared to a year ago, but they still remain higher than pre-pandemic levels. Even when interest rates drop, you will want to focus on a vehicle’s out-the-door price and whether the resulting monthly payment fits your budget.

If you financed a car at a high interest rate, refinancing could be a way to lower the rate and your monthly payment. In general, lenders recommend reducing your rate by 1% or more, without extending the loan term, to get the most out of refinancing. And you’ll want to make sure your savings outweigh any lender or title transfer fees. Since the Fed’s rate decrease is expected to be 50 basis points or less, waiting to refinance after additional rate cuts could be more beneficial.

When you do move forward with an auto purchase or refinance loan, apply to several lenders to find the lowest rate. Most lenders offer pre-qualification with a soft credit check, which gives you an idea of the rate you might get without affecting your credit score. You can use an auto loan calculator to input pre-qualified rates and terms to see an estimated monthly payment and total loan interest.

Personal loans

Jackie Veling, personal loans writer

Prospective borrowers may see slightly lower rates on personal loans at banks, credit unions and online lenders after the Fed makes a rate cut. However, the rate a borrower gets on a personal loan is still mostly determined by information supplied on their application, such as credit score, credit history and debt-to-income ratio. There are steps borrowers can take to boost their chances of qualifying for a loan with a low rate, including building their credit and paying off small debts.

If you’re considering using a personal loan to consolidate debt, it’s probably best not to wait for additional rate cuts, especially if you’re struggling with credit card debt. Credit cards tend to have higher interest rates than personal loans, and consolidating credit card debt will begin the process of getting out of debt while saving money on interest.

If you already have a personal loan, you may consider refinancing. Not every lender offers personal loan refinancing, so make sure to research lenders before formally applying for a new loan.

A smart way to always make sure you get the best rate possible on a personal loan is by pre-qualifying. This allows you to check your potential rate with only a soft credit check and compare loan options between lenders.

Student loans

Eliza Haverstock, student loans writer

A Fed interest rate cut will impact private student loans, but not federal student loans.

Some private student loan interest rates will fall. Whether you can qualify for the lowest rates, though, depends on factors like your credit score and income. If you have an existing fixed-rate private student loan, explore refinancing options to lower your interest rate and the amount you’ll repay in total.

If you have a variable rate private student loan, your rate may fall automatically. Consider locking in that lower rate by refinancing to a fixed-rate loan.

Federal student loan interest rates only change once a year. The government sets rates each spring, ahead of the upcoming school year. The rates apply to all federal loans taken out that school year, and they remain fixed throughout repayment. For example, if you borrow an undergraduate loan for 2024-25 at the current 6.53% interest rate, you will keep that rate until you pay off the loan or refinance.

Think twice before refinancing federal student loans — even if you can get a lower rate. Refinancing will permanently turn your loan from federal to private, and you’ll forfeit access to loan forgiveness programs, generous deferment options and other borrower protections, like payments based on your income.

High-yield savings accounts

Margarette Burnette, consumer savings writer

The 2022 Fed rate increases kicked off a prolonged period of rising savings rates, and today some of the best savings accounts have annual percentage yields, or APYs, above 5%. Once the Fed reduces rates, we will likely see a dip in the highest savings rates, so expect those to top out at about 4% APY (or slightly lower). At the same time, the best savings yields will remain well above the national average rate of about half a percent. This average is low in part because some savings accounts, particularly those offered by large banks, consistently offer a next-to-nothing 0.01% APY.

If you deposit $1,000 in an account that earns a rate of 0.01%, it would earn only 10 cents in interest after one year, according to the NerdWallet savings calculator. Put that same $1,000 in a high-yield account that earns 5% and it would grow by a lot more — the interest earned would be about $51.

Even when rates fall, a high-yield account will still be one of the best and safest places for your savings. Say that an account with a 5% rate decreases its yield and now offers 4%. A $1,000 deposit would earn just under $41 in interest after a year. Not quite as much as the 5% account, but still much better than the low-rate option.

Historically, we’ve seen that savings accounts with the best yields tend to consistently outperform their competitors over time, whether overall rates increase or decrease. So if your money is already in a high-yield account, you will probably continue to earn one of the best rates available. But do monitor your rate and compare it to that of other banks, especially for the next few weeks. If your savings APY falls faster than others, consider shopping around for a better option.

Certificates of deposit (CDs)

Spencer Tierney, consumer banking writer

As with savings accounts, certificates of deposit had higher interest rates in the last few years than for most of the past decade. CD rates at major online banks and credit unions exceeded 5% APY, particularly for one-year CD terms. When the Fed raised its rates from March 2022 to July 2023, banks raised CD yields. But the upcoming Fed rate cut is a sign that CD rates have likely peaked and APYs will gradually drop. August saw bigger CD rate decreases than all previous months in 2024, according to a NerdWallet analysis.

If CDs fit into your short-term savings goals, this is a good time to get them. The longer you wait, the lower rates will likely get.

What a CD can do that a regular savings account can’t do is lock in a fixed rate for a dedicated sum of savings. CDs are time-based accounts with term lengths ranging from about three months to five years. Normally, long-term rates are higher than short-term rates. But that trend flipped in recent years. In 2024, competitive five-year CD rates were closer to 4% APY while the best CDs for one year or shorter surpassed 5% APY.

CDs aren’t for everyone, though, and withdrawing from a CD before it ends generally means paying a penalty that wipes out some or all of the interest you earn. Consider CDs for preserving savings earmarked for a large purchase a few years down the road, such as car or home down payment. Or think of CDs as a way to earn steady interest without market risk, especially for folks using CDs for retirement.

The stock market

Sam Taube, investing writer

Publicly-traded companies borrow a lot of money, and the interest rates set by the Federal Reserve affect the cost of that borrowing. With that in mind, interest rate cuts have the potential to boost the bottom line of many companies, although that may affect some sectors of the market more than others.

Certain types of stocks, such as tech stocks and small-cap stocks, may be especially dependent on borrowing to stay afloat. Consumer discretionary stocks primarily make money from consumer spending — and stand to benefit from the increase in buying power brought by lower rates on credit cards and personal loans.

Bank stocks may benefit from a greater spread between the interest they pay out to depositors and the interest they collect from borrowers, as the rates they pay may decrease faster than the rates they collect. And real estate investment trusts (REITs) are income investments that behave a lot like bonds, which tend to rise in value when interest rates decrease.

So lower interest rates are generally a positive for the stock market — but there’s a catch. The Fed is cutting rates because recent jobs reports and other economic data indicate that the economy is slowing down, and a slowing economy can spook investors. Weak jobs data points toward interest rate cuts, but it can also stir recession fears and provoke stock market sell-offs, as it did back in August.

The broader economy

Elizabeth Renter, senior economist

The goal of raising interest rates (and then keeping them elevated) was to take some of the gusto out of the economy. An economy that runs too hot, with lots of spending and borrowing, is one that leads to faster-than-sustainable price growth. When the Fed begins to cut rates, they’ll be signaling they’re done with tapping the brakes. However, they won’t be punching the gas, either.

As they were throughout their rate-raising campaign, they’ll be carefully watching the economic data to determine the magnitude and speed of these cuts. And assuming the economy experiences no unanticipated shocks, they’ll be cautious. Just as the rate-hiking campaign took time to impact the whole of the economy, changing direction will too.

Over time, the ability of both businesses and consumers to borrow at lower rates will lead to increased economic activity. Employers who have been waiting to expand facilities or hire new workers will eventually see rates that entice them to take those steps. Consumers who have been sidelined by high auto loan or mortgage rates may feel a similar nudge, and make those big-ticket purchases. The goal will be to return rates to a reasonable level, one where the economy can continue to grow at a sustainable — not too fast, not too slow — pace.

The 2024 presidential election

Anna Helhoski, news writer

The Federal Reserve operates independent of the rest of government. That means the president doesn’t tell the Fed what to do and the Fed doesn’t factor politics into its decisions. The central bank’s commitment to making nonpartisan decisions is crucial to its effectiveness.

Therefore, the Fed is not going to make any rate decision intended to steer voters toward either Vice President Kamala Harris or former President Donald Trump. Still, some critics are likely to see a rate cut prior to the presidential election as a political move. The same could be said if the Fed waited until after the election to cut rates. So it goes.

The Fed’s actions do impact the economy — they’re intended to. And how an American feels about the economy could influence their vote. Still, it takes a while for the Fed’s decisions to be felt by consumers, so it’s unlikely that a Fed rate cut in September would influence a voters’ choice one way or another.

It’s possible that an avid consumer of economic policy news could be swayed by the Fed’s decision to cut rates. But it’s still unlikely; as many of those news consumers probably have their minds made up.

Meanwhile, a casual news consumer who is also an undecided voter might learn about the Fed’s decision to cut rates and feel more positive about the economy. Those good vibes could lead them to support the current administration. Or not — undecided voters can be fickle.

Hypothetical scenarios aside, the Fed’s rate cut probably won’t impact this election. But whoever wins would almost certainly enjoy presiding over an economy with lower interest rates for consumer products. Even if it’s unwarranted, the winner is pretty likely to take the credit for any economic improvements while they’re in power.

NerdWallet writes for NerdWallet. Email: articles@nerdwallet.com.

The article What Happens When the Fed Finally Cuts Rates? originally appeared on NerdWallet.

When traveling, packing less makes it easier to experience more. When you’re not weighed down by bulky bags, you have more freedom to jump on public transit or walk long distances without tiring. You’ll have fewer worries about repacking or losing items. With carry-ons only, you’ll avoid checked bag fees, waiting at the luggage carousel and the risk of lost luggage.

If you travel backpack-only, you’ll be forced me to leave even more at home than you otherwise would with a full suitcase. It means sacrificing just-in-case items.

And that’s where my 10-$10 rule comes in.

What is the 10-$10 rule?

The 10-$10 rule is a packing strategy that helps you decide what to bring and what to leave behind. The premise is straightforward: If you can acquire a just-in-case item upon arrival for less than $10 and within 10 minutes, don’t pack it.

For cheap, small items that you’ll absolutely use — say a toothbrush, deodorant or underwear — pack them regardless. But for large or just-in-case items, buy them upon arrival, granted they cost less than about $10 and are easily purchasable within 10 minutes.

Under the 10-$10 rule, items you generally shouldn’t pack include:

• Books (perhaps pack one, but will you really read that second one?).
• First-aid kits.
• Over-the-counter medications that you only sometimes use (e.g. antacid tablets or ibuprofen).
• Weather-contingent items like ponchos and umbrellas (particularly if it’s not even rainy season).

Of course, the 10 minutes is key. There probably aren’t drugstores in the wilderness, in which case packing something like a first-aid kit for a camping trip can make sense.

I’ve come up with this rule over the years of traveling carry-on only, and then progressing to backpack-only. When all your possessions are on your back, overpacking is not just unnecessary weight, but it makes it especially tough to sift through the items you really need.

Make the 10-$10 rule your own

The 10-$10 is more of a guideline than a rigid, one-size-fits-all rule. Embrace its spirit, and adjust the timing and dollar figure to your liking. Factors you consider might include:

Group type

A single, able-bodied adult might easily pop into a store and make a quick purchase. Others who are less mobile, or families with kids, might find that a single convenience store run exceeds 10 minutes, in which case packing more from home makes sense.

Item size

I sometimes make exceptions for an item’s size depending on the likelihood of using it.

Antihistamine cream is small and easy to pack, but I’ll never know whether I need it for a bug bite until it happens. Though such an item might never get used, I’ll more likely use it on a lakefront vacation in Florida than a trip in downtown Denver, where high elevations make it relatively bug-free.

Meanwhile, bulky items like beach towels never make the cut.

Budget

For budget-conscious travelers who can’t afford inflated hotel gift shop prices, the $10 threshold might be too high. Adjust it according to the flexibility of your budget.

As my own savings account has grown, I’m more willing to push the $10 rule higher. But in my younger years, my $10 rule was more like a $3 rule. Back then, I was more likely to pack a just-in-case umbrella, because the thought of forking over cash amidst a downpour felt wasteful. These days, I’m usually willing to gamble that it won’t rain.

Your own flexibility

If you’re picky, realize that it might take more than 10 minutes to find the item you want, in which case the 10-$10 rule doesn’t apply. I’m generally okay using any sort of skincare products. But if you demand a specific brand, pack your own.

And in some situations, like traveling with babies, taking 10 minutes to track down something like diaper cream might not be worth it when you could have packed it from home. The 10-$10 rule isn’t for you.

Location

Items that make the 10-$10 cut on one trip might not on another. In New York City, where there’s no shortage of retailers, I’m more willing to underpack. That’s less often the case on trips to small towns or national parks where storefronts are limited.

Don’t overpack, but don’t overshop either

It’s usually okay to spend a little more than you would to buy the same things at home. I don’t mind paying the markup for sunscreen sold on the beach versus dealing with checked luggage to pack sunscreen from home.

On the other hand, watch out for wasteful spending. Once you’ve found a cheap souvenir stall, it can be tempting to buy anything under $10 — like fanny packs, sunglasses and hats. Don’t overlook the minimalist spirit of the 10-$10 rule, which is not only packing what you absolutely need — but also only buying what you absolutely need.

Benefits of the 10-$10 rule

Packing light taught me that I often don’t even need stuff I thought I did.

Hotels often supply items you might’ve packed anyway

Many hotels these days are tightening up on the free toiletries left on your bathroom counter, presumably to mitigate waste. But often, hotels still offer those freebies — you just have to ask.

On a recent stay at the Hotel Virginia Santa Barbara in Santa Barbara, Calif., the lobby attendant gave me complimentary toiletries like toothpaste and razors. I was delighted by the complimentary sunscreen at the Halepuna Waikiki by Halekulani in Honolulu.

Even at Disneyland, I’ve picked up free bandages for my blistered feet at a first aid station in the park.

Most hotels and vacation rentals provide irons, hairdryers and towels, so definitely don’t pack those bulky items. Some also offer items like robes and umbrellas.

You net a great souvenir

On a trip to Thailand, I intentionally under-packed. Buying a sundress, shirts, sandals and floppy hat from vendors who lined the beach was all part of the experience. Plus, they’re functional souvenirs that I truly love.

Sally French writes for NerdWallet. Email: sfrench@nerdwallet.com. Twitter: @SAFmedia.

The article My Travel Secret For Not Overpacking? The 10-$10 Rule originally appeared on NerdWallet.

There are endless listicles online about how to make extra income while working full time, but how many of those options are realistic for busy moms? As master multi-taskers short on time, moms often need flexibility if they’re going to take on a side gig.

Sometimes a hobby, passion or skill you do effortlessly can make you extra money. Other times, you may need to acquire certain skills to make extra cash. Four full-time working moms — including myself — share gigs that fall into both categories.

Writing

Resume writing is one way Tonnesha Edmond, owner of Pretty Resumes and a mother to two kids in Lawrenceville, Georgia, makes extra income. Additionally, Edmond provides services like job application assistance and business proposals to clients.

“I’ve always been a great writer, so my family and friends would come to me to help them with their resume and I’ve always been a great researcher,” she says. “So even if I wasn’t super familiar with the job they were going after, I knew how to do the research so I could put together a resume that will actually help them get the job.”

Edmond started monetizing her skill over four years ago when her son was in the NICU for the first eight months of his life. She now juggles full-time employment and her side gig.

How much can you earn through resume writing? Edmond charges $175 per resume and offers packages with add-ons to increase her earnings. A perk of this gig is that her time commitment is only around 10 hours a week.

Edmond says that listing her business on Google has helped improve her visibility and attracted more clients.

Like Edmond, I have a natural knack for writing, and was able to turn that into a side hustle. I have gotten clients by sending out cold emails to entrepreneurs I think could benefit from the services I offer, then setting up consultations to gauge their needs. With online publications, I simply send story pitches to editors.

Teaching English

Megan Holley, a mom of two in Fulshear, Texas, has been making extra money since 2018 by teaching students English online. Holley’s first teaching gig was with a company called EF Education First, but she currently teaches with LingoAce. Holley says she enjoys teaching English as a side gig because of the flexibility it offers. She typically teaches during late evenings or early mornings.

“I can kinda choose my own schedule, which is nice,” she says. “I really do actually enjoy teaching so that’s also part of it.”

In terms of earning potential, at LingoAce you can make base pay of $14 an hour as an ESL teacher and up to $30 an hour as a math teacher. However, you will likely need to get a certification if you plan to teach. Companies may require certifications such as Teaching English as a Foreign Language (TEFL) or Teaching English to Speakers of Other Languages (TESOL).

The main challenge Holley mentions is acquiring enough students to get the amount of pay you want.

“The more you teach with the company, the more reviews you get and the more people you get saying that they liked your teaching style, then the more students you might get,” she says.

Reselling items online

If you’ve been avoiding decluttering, earning income from your clutter might be a good incentive to tackle it. Keola Harry sells items on Mercari, an international online marketplace for extra income. Harry, who is based in Atlanta, finds time to do this when she’s not working full time and raising two young children.

“So that’s me just reselling everything in my house that I thought at one point in my life I loved and I had to have it, and then I bought it,” Harry says. The working mom resells trendy baby items and furniture collecting dust around her home. She says the baby items are snatched up by buyers the fastest.

Harry makes around $600 a month reselling items in her home. This year alone, she’s made over $3,000. It’s also worth mentioning that Mercari may be an attractive platform because it doesn’t charge a seller fee.

Harry began the gig to bring in additional income during the pandemic after her husband got laid off. What started out as a form of extra income to create financial stability has turned into her rainy day fund.

In a bid to maximize her side gig income, Harry places the money she makes into a high-yield savings account to earn interest.

“That’s one big perk of having that extra money coming in with the side hustle is that you can put it somewhere, like a high-yield savings account and just watch it grow a little,” she says.

Elizabeth Ayoola writes for NerdWallet. Email: eayoola@nerdwallet.com.

The article 3 Side Gigs for Full-Time Working Moms originally appeared on NerdWallet.

If you’ve been skipping your federal student loan bills, or you have defaulted loans, your time is running out to get back on track without harsh consequences. Two key pandemic-era relief programs are set to expire on Sept. 30: the student loan on-ramp and the Fresh Start program.

Millions of borrowers are benefitting from the on-ramp or Fresh Start — and some may not know it. To check, log into your studentaid.gov account and review your monthly payment history and loan repayment statuses. If you have missed or late payments, you’re on the on-ramp. If you have a loan listed as in default, you’re benefiting from the Fresh Start program.

In either case, you need to act by Sept. 30. Here’s how.

Student loan on-ramp: Make a plan to deal with your bills

The student loan on-ramp began Oct. 1, 2023, and lasts until Sept. 30, 2024. It’s intended as a safety net for the “most vulnerable borrowers,” the White House said last summer.

The program is automatic for all borrowers who miss payments during this time — there is no enrollment process. During the on-ramp, you can’t fall into delinquency or default. Missed payments won’t be reported to credit bureaus.

Roughly 3 million borrowers have taken advantage of the on-ramp and were at least 30 days late on their loans as of June 30, according to Federal Student Aid office data.

If you’ve been skipping payments, make a plan for October. Otherwise, you could face harsh and costly consequences. Once a payment is 270 days late, you will enter student loan default. Debt collectors can garnish your wages and charge hefty fees.

Here are steps to take before the on-ramp expires:

• Check your student loan accounts. Log into studentaid.gov, see how much you owe and update your contact and billing info. Your servicer can answer questions.
• Choose a repayment plan. If you don’t select a repayment plan, you’re automatically enrolled in the standard 10-year repayment plan. For more affordable payments, consider an income-driven repayment (IDR) plan.
• Consider a deferment or forbearance. If you won’t be able to afford payments for the foreseeable future, consider a student loan deferment or forbearance to pause payments for up to three years.

If you want to change repayment plans, note that only two IDR plans are currently available: SAVE and Income-Based Repayment (IBR).

» MORE: How the SAVE lawsuits are impacting IDR enrollment

Fresh Start program: Sign up ASAP to lock in defaulted loan relief

If your federal student loans were in default before the pandemic, take advantage of the Fresh Start program. About 7.5 million borrowers with defaulted loans are eligible.

You must enroll in the program by Sept. 30 to get out of default and lock in benefits, including:

• Loans returned to “current” status on credit reports, and negative default marks removed.
• Access to federal student aid and other government loans, like mortgages.
• Access to flexible repayment plans and potential loan forgiveness.
• Access to short-term relief, like deferment or forbearance.
• Suspension of involuntary debt collection efforts.

If you miss the Sept. 30 deadline and let your loans stay in default, you could face harsh consequences. Debt collectors might garnish your paychecks and tax refunds. You may face steep collections fees. Your credit score could plummet, making it difficult to qualify for future loans, mortgages or even apartment rentals.

You can avoid that headache — and get back on track with an affordable repayment plan — by signing up for the Fresh Start program. Here’s how:

• Submit a Fresh Start request. Fresh Start enrollment is free and can take less than 10 minutes. You can do it online on myeddebt.ed.gov, over the phone by calling 1-800-621-3115 or by sending a letter postmarked by Sept. 30.
• Watch for servicer communication. After you sign up for Fresh Start, the government will transfer your payments from the Default Resolution Group to a federal student loan servicer. Your new servicer will contact you once your loans transfer over.
• Choose a repayment plan after getting out of default. You’ll be automatically placed into the standard 10-year repayment plan, but about 80% of Fresh Start borrowers sign up for an IDR plan, according to the Education Department. Half of Fresh Start borrowers have $0 monthly payments under an IDR plan.

You can apply for an IDR plan within a week or so of your loan transfer.

Eliza Haverstock writes for NerdWallet. Email: ehaverstock@nerdwallet.com. Twitter: @elizahaverstock.

The article Act Now: Two Key Student Debt Relief Programs Expire Sept. 30 originally appeared on NerdWallet.

Interest rates on personal loans have steadily increased since early 2022, coinciding with the Federal Reserve’s efforts to curb inflation by raising the federal funds rate.

But anticipated Fed rate cuts before the end of this year may not bring personal loan rates down right away.

“Typically, we don’t see personal loan rates drop as a result of those rates dropping,” said Jean Hopkins, director of consumer lending at WeStreet Credit Union in Tulsa, Oklahoma.

Changes to the federal funds rate have a greater impact on variable-rate credit products, such as credit cards or home equity lines of credit, she said. Personal loan rates, on the other hand, are driven by larger economic factors, such as inflation and unemployment.

Your exact personal loan rate is most influenced by your creditworthiness and income. If you’re planning to borrow this year, here are a few things you can do to get a low rate on a personal loan.

Maintain a high credit score

Lenders rely heavily on credit scores to determine how likely an applicant is to repay a loan. Generally, those with high scores get the lowest rates.

“If you have a high credit score, banks think that you’re a good risk to take,” says Spencer Betts, certified financial planner at Massachusetts-based Bickling Financial Services.

He says borrowers should check their credit report before applying for a personal loan and take note of any past-due credit accounts or accounts you don’t recognize, which could indicate identity theft.

You can access free weekly credit reports at AnnualCreditReport.com.

Potential borrowers looking to maintain or boost their credit scores should make on-time payments toward credit cards and other loans, Hopkins says, because payment history is the most important factor in your credit score calculation. She also says borrowers should maintain a low credit utilization, which is the percentage of available credit you’ve used on revolving accounts like credit cards.

“Make sure if you’re borrowing money on credit cards that you’re not borrowing more than, say, 30% or 40% of your balance on that line of credit,” she says.

Keep a low debt-to-income ratio

Another factor lenders consider when underwriting a personal loan is the percentage of your monthly income that goes toward debt payments.

“You want to make sure your debt-to-income ratio is low,” says Jen Hemphill, a Kansas-based accredited financial counselor and host of the Her Dinero Matters podcast. “The lower it is, you’re going to have a better chance of a lower interest rate.”

Debt-to-income ratio, or DTI, is calculated by dividing your total monthly debt payments by your monthly income. Multiply that figure by 100 to get the ratio expressed as a percentage. Hemphill suggests keeping your DTI around 30% or less, though some lenders will accept higher ratios.

If your DTI is high, consider paying down debt before applying for a personal loan for a chance at a better rate.

Hopkins suggests paying off smaller debts first to quickly eliminate those monthly payments and consequently lower your DTI.

Raising your income — which would also lower your DTI — may be a difficult task, but be sure to include all sources of income on a loan application. Many lenders count alimony, child support and Social Security payments when calculating DTI. You might even be able to include a partner’s salary as household income.

Compare offers to find the best deal

When you’re preparing to apply for a personal loan, it pays to compare offers from multiple lenders. Each lender has its own qualification requirements and underwriting process, so you could get a different APR from one lender to the next.

You can compare costs by pre-qualifying online. This process lets you preview your potential APR, monthly payment, loan amount and repayment term with only a soft credit pull, so your credit scores won’t be affected.

Pre-qualifying gives you “an idea of what interest rates are available for you based on your own situation,” Hemphill says. “That helps you shop around.”

She suggests paying special attention to the repayment terms you’re offered and how they affect the amount of interest you’ll pay over the life of the loan. Long terms may be appealing because they lower your monthly payment, she says, but they increase the total cost of the loan.

You can use a personal loan calculator to see how the given loan amount, term and interest rate affect monthly payments and interest costs.

If you have two competitive loan offers, compare perks and features to determine which is the right fit for your plans, Hemphill says. For example, some lenders provide a rate discount for setting up autopay or for having the lender directly pay off your other debts when you get a debt consolidation loan. Others may provide credit-building assistance so you can boost your score while you repay the loan.

Nicole Dow writes for NerdWallet. Email: articles@nerdwallet.com.

The article How to Score a Low Personal Loan Rate in 2024 originally appeared on NerdWallet.

Traveling during peak season can be a drag. Visiting Europe in the summer, for example, means contending with higher prices, tight availability and throngs of fellow travelers.

That’s why many savvy travelers choose to vacation during “shoulder seasons” that lie between peak season and low season — spring and autumn for many destinations. Yet remote work and overcrowded peak seasons have increased the popularity of these shoulder seasons.

Take the Jersey Shore, a popular seaside destination in New Jersey, for example. This coastal region has seen a significant increase in visitors during the fall months, with October through December occupancy rates in 2023 up by as much as 50% compared to pre-pandemic levels, according to a 2024 report from AirDNA, a short-term rental analytics firm. And it’s not the only place that’s getting more visitors outside of peak season.

As many destinations see more tourists spill into the shoulders, what’s the best way to avoid these offseason crowds?

Avoid trendy destinations

If everyone is zagging their travel plans, maybe it’s a good time to zig.

For example, Japan saw a huge influx of travelers this spring. The number of U.S. citizens departing for Japan in March through May of 2024 rose 17% compared with the same months in 2023, and jumped a whopping 41% compared with the same months in 2019, according to the International Trade Administration. Similarly, Greece saw nearly three times as many U.S. visitors from March through May in 2024 compared to the same period in 2019.

Closer to home, popular national parks have seen a surge in shoulder season crowds.

In Maine, “Acadia National Park, which was once highly seasonal with peak demand only in July and August, now sees high demand stretching from June through October,” Chloé Garlaschi, a communications manager for AirDNA, said in an email. “This trend is part of a broader shift where national park destinations are attracting visitors outside of their traditional peak periods.”

If everyone you know is talking about visiting Tokyo or Athens, Greece, maybe it’s worth researching locales that have seen fewer tourists in recent years. For example, Australia saw 27% fewer U.S. visitors in the spring months of 2024 compared with the same months in 2019. China, which has seen much less U.S. tourism since the start of the COVID-19 pandemic, had 78% fewer U.S. visitors this spring compared with 2019.

Embrace the offbeat

Even within popular destinations, it’s possible to venture to offbeat locales with far fewer tourists. Most travelers to Japan visit the Eastern cities of Tokyo and Kyoto, but fewer venture inland to mountain towns such as Takayama, which boasts impressive temples and a quiet, quaint atmosphere. And few foreign tourists visit the island prefecture of Okinawa in Japan’s south, despite its warm weather and distinct culture from the mainland.

In the U.S., well-known national parks like Acadia (in Maine) and Yosemite (in California) may be popular during shoulder season. But lesser-known parks such as Great Sand Dunes National Park in Colorado or California’s Channel Islands National Park may see smaller crowds.

Avoid high prices

When demand for travel to a destination peaks, so do prices for airfare, accommodations and ground transportation. So looking for deals can save you money and help you avoid the most crowded spots.

According to data provided by Hopper, a travel booking platform, these destinations in the U.S. are seeing the biggest spike in flight booking demand this autumn:

• Seattle.
• Portland, Ore.
• Salt Lake City.
• San Jose, Calif.
• Hawaii Island, Hawaii.
• Spokane, Washington.
• Lihue, Hawaii.
• Indianapolis.
• Portland, Maine.
• Asheville, N.C.

Meanwhile, these international destinations are seeing the biggest price spikes:

• Seoul, South Korea.
• Shanghai.
• Athens, Greece.
• Frankfurt, Germany.
• Venice, Italy.
• Zurich.
• Lima, Peru.
• Brussels.
• Kuala Lumpur, Malaysia.
• Bangalore, India.

Of course, just because a flight is expensive doesn’t mean the destination will be crowded, but it does provide a proxy for demand. These lists give a sense of which spots are hot even when the weather isn’t.

Know thy shoulder

Not all shoulder seasons follow the same pattern, so knowing the right time to travel to avoid crowds means more than just leaving in the spring or fall.

“In Phoenix and Scottsdale, [Arizona], we see an unconventional seasonal pattern,” Garlaschi said. “The peak season actually falls in February and March due to the mild winter climate.”

And keep in mind that, even though travel data show shoulder seasons getting more popular, crowds (and prices) will still be much lower during these off-peak periods. You don’t have to travel to the North Pole in winter to avoid overtourism.

Sam Kemmis writes for NerdWallet. Email: skemmis@nerdwallet.com. Twitter: @samsambutdif.

The article How to Avoid the New ‘Shoulder Season’ Crowds originally appeared on NerdWallet.

The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.

Giving money to teenage children might sound simple, but it can quickly become complicated. Parents often want to set limits on how much their teens can spend, teach them about money management and protect them from fraud, all at the same time.

“It’s about knowing your kids and tailoring the approach a little bit to the child,” says Amy Spalding, a certified financial planner at District Capital Management, a Washington, D.C.-based firm. Some kids need more active help to stay organized and learn how to stay within a budget, while others need to be encouraged to practice spending in the real world.

Here are some strategies to consider when providing money to your teenager:

Start with cash

When children are using money on their own for the first time, sticking with cash can be the easiest way for them to learn how to manage it, says Dan Tobias, a CFP and founder of Passport Wealth Management in Cornelius, North Carolina. “First, get them to understand and appreciate money with paper. Then, when you need to, you can switch to electronic methods,” he says.

That’s the approach he uses for his own three children. He gives them a cash allowance and lets them decide how to spend it, which includes letting them make mistakes.

“Don’t be afraid to let them fail,” Tobias says. Kids might lose a $20 bill, splurge on something that breaks the next day or, in his case, buy a fish and a tank that they soon don’t want anymore. Those mistakes are critical teaching moments, he says, so it’s important parents don’t micromanage their kids’ spending.

Leverage familiar apps

Once children start earning and spending their own money without you nearby, digital payments become more appealing. You can use methods you and your kids may already know, like Apple Wallet, Venmo or other apps already connected to your phone. They are often connected to a parent’s credit card or checking account, unless a child already has their own.

Sarah Behr, a financial planner and owner of Simplify Financial in San Francisco, says apps can be helpful because a parent can closely monitor a child’s spending and “keep the guardrails up” while still giving them the freedom to make their own spending decisions.

If a teen overspends without permission, that can lead to a helpful conversation about budgeting. At the same time, parents can find ways to make sure their own accounts are protected, by using the apps to set spending limits or creating separate accounts with low balances and low credit limits.

Spalding turned to digital payment apps when her teenagers started spending money on their own. She set up a separate bank account with a low balance to limit the potential damage if the account was compromised or a teen overspent.

(Kimberly Palmer shares how she gives money to her teenage daughter.)

Try paid products for more support

Debit cards and apps designed for kids like Greenlight, GoHenry and BusyKid offer additional support for families, such as allowing them to actively manage a budget and chores, but they often come with a fee.

Greenlight, which costs between $5.99 and $14.98 a month, offers parental controls, the ability to assign chores and allowance automation, among other features. “Kids can understand the bigger picture of money management” and also set savings goals for themselves, says Jennifer Seitz, director of education at Greenlight.

Gregg Murset, a CFP and CEO of BusyKid, a debit card and chore app for kids, says the app helps parents teach kids important lessons about tracking money, investing and giving to charity. “That’s what we do as adults — save, invest and share — so we are modeling reality,” he says, adding that kids ages five through 17 can use the app, which costs $4 a month.

Encourage savings

Regardless of the method you choose, saving money should be part of the conversation with your kids, Spalding suggests. When her children were young teenagers, she took them to a local bank to set up a savings account so they could deposit money they had accumulated from babysitting jobs and gifts. She says you could also use an online high-yield savings account to see the money compound more quickly.

Investing in a Roth IRA can be a smart next step for children earning their own money. Behr offered her daughter a savings match up to the amount she contributed to encourage her to save more for the future. “I’m hoping the discipline of this exercise in delayed gratification sinks in,” she says. Teens can save up to the amount of their earned income with a limit of $7,000 for 2024.

With that kind of practice, saving for the future might even become a lifelong habit.

Kimberly Palmer writes for NerdWallet. Email: kpalmer@nerdwallet.com. Twitter: @kimberlypalmer.

The article The Best Ways to Give Money to a Teenager originally appeared on NerdWallet.

Is driving for Uber worth the money? I put this side hustle to the test and nervously drove strangers around northern Maryland for a couple days to find out.

Here’s what I earned:

• I made $143.73 over the course of three Uber “shifts” that totaled roughly 10 hours of active driving.
• I completed 10 trips, put 305 miles on my economical Uber rental and spent $38.80 on one tank of gas.
• Subtract the gas cost from $143.73, and I earned $104.93, or $10.49 an hour.
• Only $3 of my earnings were tips, which I found surprising — because I’m nice!

If you’re wondering, the minimum wage in Maryland handily beats my earnings at $15.00 per hour.

Uber wasn’t a lucrative side hustle for me, but it was an interesting experiment. Here are four things to keep in mind if you’re thinking about trying Uber. And if you want to watch all the ups and downs of this side hustle stress test, here’s a video of my experience.

Give yourself the flexibility to roam

During each of my three Uber “shifts,” I had the idea that I’d do rides relatively close to where I live. But the reality of living in a less populated area is that short, local trips can be few and far between. I found that to be the case even on a Friday evening in my suburban town, located roughly 50 minutes north of Baltimore.

I learned that to earn higher fares, you need to be open to where the Uber trip takes you. I left a lot of money on the table by skipping trips that would end too far from my home base. Uber works by matching riders with nearby drivers. As a driver, you have just a few seconds to accept a ride request when it comes in. I often took too long to decide when considering distance.

Toward the end of that Friday, I caved and accepted a 30-mile trip with a fare of $30.42. But when it was over, it was after 9 p.m. and I was a long way from home.

If I had put in 8-hour shifts and left myself to the mercy of the Uber Driver app, I’d have done better. But if I’m going to be driving all over creation for hours, is Uber a side hustle, or is it a main hustle?

Your car is a taxi cab and your primary tool

All that driving means you need a car that’s up to the task — something affordable, reliable and efficient. My personal vehicle is a gas-guzzler so I used Uber’s car rental service to rent a more appropriate vehicle and make this test more realistic.

But what I realized is a lot of people rent their Uber rides on the regular. If you go this route, you must rent from one of Uber’s approved rental company partners. The rental office I used, a local Hertz that partners with Uber, was packed, and I found the experience to be super hectic. It took three hours to get my car, and the one they gave me was a downgrade from what I reserved in advance.

Because of my experience, I don’t recommend renting if you can avoid it. Uber rentals cost $260 or more per week, so the recurring cost will eat heavily into earnings.

Finding your own affordable used car would likely cost less in the long run, even in cases where you get a car loan with bad credit. For example, let’s say you finance a $20,000 used car for 60 months with a high 19% interest rate. The $518 monthly payment costs less than the $260 a week rate for a rental car.

You will need to factor in insurance (which can include rideshare insurance), maintenance and repairs when comparing costs. You can turn to the Nerds for resources on how to build credit and finance a vehicle you can afford.

Consider a “slush fund” for car costs

I had the pleasure of meeting and riding home with a true Uber pro after I returned my rental car. His name is Greg Hiteshew, and Uber is his post-retirement hustle. He drives most days, says he earns between $1,000 and $1,500 in a typical week and is disciplined about saving money for car costs.

Hiteshew says he sets aside $40 at the end of every day and has done so for years without fail. He says it’s a daily habit that ensures he has enough to cover maintenance and repairs for his current car, and helps him save for the next car.

Consider putting your daily $40 (or whatever you can swing) in a high-yield savings account for the added bonus of interest on top.

Embrace the human side of rideshare

While we chatted on my ride home, Hiteshew opened up about how driving for Uber helped him cope with the loss of his wife. She passed away from cancer 12 years ago, and in the years after, he found himself in a pretty dark and lonely rut. Then one day a friend had a suggestion for a side hustle that would change his life.

“He said, ‘I want you to Uber,’” says Hiteshew, talking about meeting with his friend. The friend hoped it would give him something to keep his mind occupied. Hiteshew thought about it and decided to give it a try a week later.

“It worked,” he says. “Turns out I love it. I really enjoy doing it. I’ve met a lot of nice, nice people.”

I get what he’s talking about. I’ve been working from home for years, and trying Uber put me back into the world. I interacted with different people, visited parts of my area I hadn’t been to and realized how critical a service like Uber is for those who may not be able to afford a car. It reminded me how important it is to communicate with others, strangers even.

Turns out that part of the experience was more valuable than the money. And if I drive for Uber again, I think I learned enough to do better than $10.49 an hour.

Tommy Tindall writes for NerdWallet. Email: ttindall@nerdwallet.com.

The article How Much Does an Uber Driver Make? I Drove for Uber to Find Out originally appeared on NerdWallet.

Home prices may have come down from their 2022 high, but they remained out of reach for the typical would-be first-time buyer in the second quarter, especially in the nation’s most populous areas.

Buying a home in this market can be particularly hard for people who haven’t done it before. First-time buyers traditionally have lower incomes and less established credit than repeat home buyers. Further, they generally make smaller down payments — 8%, on average, according to the most recent Profile of Buyers & Sellers from the National Association of Realtors, compared with 19% for repeat buyers. Buying a first home has arguably never been easy, but it’s gotten extremely difficult under current conditions.

With a down payment of 8%, housing payments on a typically priced home in the second quarter of 2024 would equate to almost half of the median gross monthly income for Americans of first-time buyer age.

Making a larger down payment or choosing a less desirable home could make this initial purchase easier, but not all homebuying hopefuls will find those options possible.

Housing payments for first-time buyers: 49% of income

The average sticker price for a home in the second quarter of this year was $439,000, according to NerdWallet analysis of Realtor.com data. But the advertised price of a home is far from the only consideration of affordability.

For that reason, we examined the potential housing payment for first-time buyers in the second quarter. This payment not only accounts for the price of the home, but also the typical first-time buyer down payment, mortgage rate, real estate taxes, homeowners insurance and PMI, or private mortgage insurance — a requirement on conventional mortgages financed with less than 20% down.

That estimated monthly housing payment using the nationwide average home price was close to $3,500 in the second quarter of the year. That’s 49% of the median income for Americans in the first-time home buyer age group. And estimated payments in some of the country’s largest metro areas were considerably higher.

First-time home buyer tip: In the highest-priced markets such as Los Angeles, New York and San Diego, putting 8% down on a home may not be feasible. That’s because typical home prices in these areas are well over one million dollars, and would require what’s known as a jumbo mortgage. Currently, loans over $766,550 exceed the cap for conforming loans, according to the Federal Housing Finance Agency, and jumbo loans generally have stricter standards, including larger down payment requirements. Buyers in these markets will need higher-than-average incomes, larger down payments and flexibility on their side to become homeowners.

In other areas, buyers hoping to put less than 20% of the sale price down have more options. Many lenders offer loans with lower down payments — as low as 3% — and most states have first-time home buyer programs with benefits such as down payment assistance.

Buyers (and borrowers) have a few options

One lesson that became apparent to home buyers over the past few years: You can’t take low mortgage rates for granted. After several years of rates below 5% (with periods even below 3%), current rates are a reminder that it’s not only home prices that matter in home affordability calculations. Borrowers can take some steps to ensure they qualify for the lowest rates available, but lenders will only go so low. Home down payments are another input that can have a considerable impact on how much buyers spend each month.

Increasing a down payment from 8% to 12%, for example, can shave several hundred dollars off of the monthly housing cost. But if possible, increasing your down payment to 20% can eliminate the PMI requirement on a conventional loan.

First-time home buyer tip: To be sure, putting 20% down on a high-priced home won’t be possible for all first-time buyers. It’s an especially tall order when homes are priced as high as they are now. But the larger your down payment, the less you have to finance, and every bit helps. So, for instance, if you’re waiting for mortgage rates to come down a bit, using that time to intentionally squirrel away more in savings means you can also take out a smaller loan when you’re ready to start shopping. If you hope to buy in the coming months, keeping your down payment fund in a high-yield savings account ensures it’s readily available. But if you plan on waiting a year or two and can stand putting the money out of reach, a certificate of deposit may offer higher rates.

Inventory deficit remains the driver of high prices

The high home prices we currently see are a direct result of too few homes. This low supply in the face of high demand drives prices up. And currently, the supply is so low that even seasonal quarterly gains in inventory aren’t enough to provide relief.

The second quarter of the year generally brings more listings to the market, and Q2 of 2024 was no different. Across the country, the number of homes on the market rose by 17% compared with the previous quarter, and a generous 34% compared to last year’s second quarter. Despite these gains, list prices rose 4% in the second quarter.

While inventory continues to climb, the current number of homes on the market at any given time is still at a significant deficit from where it was before the pandemic.

First-time home buyer tip: In the past, first-time buyers began their homeownership journey with a “starter” home — something smaller or a home that needed some work — to help keep the price point reasonable. But in this market where homes are few and far between, starter homes are difficult to find. One way to increase the number of homes available to you is to expand your search. Whether geographically — looking at homes in different neighborhoods or even towns — or by considering home types or features that aren’t on your long-term wishlist, the more flexible you are in your homebuying journey, the more likely you are to find something that fits the bill.

The analysis methodology is available in the original article, published at NerdWallet.

Elizabeth Renter writes for NerdWallet. Email: elizabeth@nerdwallet.com. Twitter: @elizabethrenter.

The article Q2 Affordability Obstacles Hinder Would-Be First-Time Home Buyers originally appeared on NerdWallet.