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Is your trip to the grocery more expensive these days? You’re not alone. Food prices have been steadily increasing since 2020 and jumped 3.7% between September 2022 and September 2023, according to the most recent consumer price index report.

One way to deal with rising food prices? Have a plan for how to manage the amount of money you spend on groceries.

Here, we’ll look at the average cost of groceries, provide a grocery budget calculator table to help you manage your food spending, and explore a few ways you can save.

What Is a Grocery Budget?

In order to manage what you spend on food, you have to know how much you can afford. That’s where having a grocery budget comes in handy.

A grocery budget is simply an allotted amount that you can use to buy food for your household. Ideally, you’d spend that amount or less, and anything left over can go toward other living expenses or savings.


💡 Quick Tip: Online tools make tracking your spending a breeze: You can easily set up budgets, then get instant updates on your progress, spot upcoming bills, analyze your spending habits, and more.

Pros and Cons of Grocery Budgets

Grocery shopping on a budget generally means being more mindful about your food purchases, which has a number of benefits.

One of the biggest perks of sticking to a grocery budget is that it helps you avoid overspending. It also ensures you still have money for other expenses.

Plus, having an idea of how much you should spend on food can help cut down on the amount of food that goes to waste.

On the other hand, creating a grocery budget means reigning in impulse buys and being stricter about what ends up in your cart. You may have to spend more time looking for the best prices on food items, and you might even need to visit multiple grocery stores to save money.

Average Cost of Groceries by State

Curious about how your grocery bills stack up against others in the U.S.? Here’s the average monthly cost of groceries in the most populous city in each state, ranked from lowest to highest.

State	City	Monthly Food Costs
Wyoming	Cheyenne	$335.97
Arkansas	Little Rock	$343.15
West Virginia	Charleston	$347.40
Iowa	Des Moines	$351.80
New Hampshire	Manchester	$357.33
Utah	Salt Lake City	$359.65
Virginia	Virginia Beach	$362.00
Arizona	Phoenix	$367.15
Mississippi	Jackson	$367.52
Idaho	Boise	$371.54
Kansas	Wichita	$372.42
Missouri	Kansas City	$377.06
Nevada	Las Vegas	$382.16
Indiana	Indianapolis	$382.62
New Jersey	Newark	$390.89
Michigan	Detroit	$392.16
Ohio	Columbus	$392.59
Oklahoma	Oklahoma City	$401.48
Kentucky	Louisville	$406.95
Montana	Billings	$411.70
Minnesota	Minneapolis	$416.66
Alabama	Huntsville	$420.97
Texas	Houston	$424.71
South Carolina	Charleston	$427.57
Maryland	Baltimore	$429.38
Vermont	Burlington	$434.48
Florida	Jacksonville	$434.98
Nebraska	Omaha	$438.79
New Mexico	Albuquerque	$440.66
Louisiana	New Orleans	$443.34
Pennsylvania	Philadelphia	$444.29
Colorado	Denver	$452.45
California	Los Angeles	$458.71
South Dakota	Sioux Falls	$462.65
Oregon	Portland	$467.77
Tennessee	Nashville	$469.01
Illinois	Chicago	$470.65
North Dakota	Fargo	$474.01
North Carolina	Charlotte	$475.19
Georgia	Atlanta	$477.96
Rhode Island	Providence	$479.81
Alaska	Anchorage	$480.11
Maine	Portland	$486.53
Washington, DC		$486.63
Connecticut	Bridgeport	$497.70
Massachusetts	Boston	$506.63
Washington	Seattle	$512.11
Delaware	Wilmington	$527.51
New York	New York City	$555.11
Hawaii	Honolulu	$638.57

Source: Move.org

Average Cost of Groceries by Age

It’s not just geography that can impact how much you spend on groceries. Your age and budget can also play a role. Let’s look at how spending can differ by age and budget sizes. Note that these figures are suggestions and reflect a grocery bill for two.

Age Group	Low Budget	Moderate Budget	Liberal Budget
19-50	$512.50	51-70	$633.20
51-70	$490.10	$612.20	$740.40
71+	$474.50	$599.80	$731.60

Source: One Main Financial

Average Cost of Groceries by Household Size

Not surprisingly, the size of your household can have a major impact on how much you spend at the grocery store. But it’s worth noting that the more family members you have, the less your budget increases. In other words, you don’t have to double a single person’s budget for two and triple it for three.

Instead, add about 20% to your budget for one extra person, 10% for two extra people, and 5% for three extra people. So if your allocate $400 a month for yourself, you’d increase that to:

•   $480 for two people

•   $576 for three people

•   $605 for four people

This will, of course, vary depending on who’s in your household. Teenagers, as we know, eat a lot!

How to Calculate for a Grocery Budget

Generally, people spend about 12% of their household income on groceries. To get an idea of what you’ve been spending, gather receipts from past grocery shopping trips.

Pay attention to what you’ve bought. How much of it was necessary and how much was an impulse buy? Keep in mind that when you make your new monthly or weekly budget, you’ll likely need to curb some unnecessary spending.


💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

Grocery Budget Calculator Table

Let’s create a scenario to illustrate what a monthly grocery budget could look like. The example below is for a household of three.

Category	Spending
Fruits and vegetables	$50
Milk, yogurt, ice cream	$30
Meat	$90
Household items (toilet paper, paper towels, shampoo)	$30
Snacks	$40
Dry goods	$40
Frozen foods	$40
Breakfast foods	$30
School lunches	$50
Alcohol	$70
Bread	$20
Discretionary spending (impulse buys)	$50
Total	$800

This budget may be on the high end for a three-person household, depending on its monthly income. If $800 per month is too high for you, you might explore ways to cut down on spending in some of these categories.

Ways to Saving Money on Groceries

One effective way to save money on groceries is to track your spending. Categorize your spending so you can track your budgets and make sure you’re within the margin. A money tracker app or grocery budget calculator app can make the job easier.

It also helps to familiarize yourself with the grocery stores in your area so you know who has the best deal on which items. Check the weekly store flyers, and stock up on good deals. Many things, including meat, can be frozen, so consider buying in bulk.

Having a membership to a store like Costco or Sam’s can also be a smart economical move, especially if you’ve got a large family. Also consider cutting coupons the old-school way or downloading a coupon app.

Always make a game plan before you leave for the store. Look at your list and see which store is offering the best prices on the things you need. Check your coupons and plan to buy items that you can save on.

Finally, here’s a tried-and-true tip that’s very useful: Never go to the store hungry. If you’re shopping on an empty stomach, you’re more likely to buy what you want to eat, rather than what you need.

The Takeaway

If you’re looking to save money on food, consider making a grocery budget. The spending plan can ensure that you only buy what you can afford, and may leave you with extra money to put toward other expenses or financial goals.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

See exactly how your money comes and goes at a glance.

FAQ

How do you calculate your grocery budget?

Begin by looking at how much on average you’ve been spending at the grocery store. If your current budget can’t accommodate that amount, look for items you can cut out.

What is a realistic budget for groceries?

Many American households spend about 12% of their monthly income on groceries. How much you spend will depend on the size of your household and how strict you want your budget to be.

How much should I budget for groceries for a week?

Once you work out a monthly budget for your groceries based on about 12% of your household income, you can break that amount down by the number of weeks in a month.

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Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Going to college or graduate school is a serious investment in your future — both professionally and financially. Naturally, you’ll want to know how much financial aid you’re eligible for, including student loans, grants, and work-study programs.

The amount of federal aid that prospective and current students receive is based on a variety of factors, and everyone’s financial situation is unique. But familiarizing yourself with the following requirements and questions can help paint a clearer picture of how much FAFSA money you will get.

What Are the Eligibility Requirements?

Many incoming and current college and graduate students are eligible for federal aid. Students must satisfy the following criteria to apply:

•   Be a U.S. citizen, national, or eligible noncitizen

•   Have a valid Social Security number, unless you’re from the Federated States of Micronesia, Republic of the Marshall Islands, or the Republic of Palau

•   Have a high school diploma or GED

•   Promise to use awarded federal aid for education purposes only

•   Do not owe refunds on any federal student grants

How Do I Begin the FAFSA?

The first step to completing the FAFSA is creating your FSA user ID and password. From there, you’ll answer a series of questions covering demographic information, schools you are interested in attending, financial details, and information from parents or guardians based on dependency status.

Filling out the FAFSA may feel intimidating, but a little preparation can save you from common FAFSA mistakes, like leaving important fields blank.

What Factors Affect FAFSA Money?

The application includes questions about demographics and finances for students and sometimes their families to answer. Collectively, this information will determine how much need-based and non-need-based aid students qualify for.

Applying for the FAFSA Every Year of School and on Time

Filling out the FAFSA is not a one-time deal. Students must file the FAFSA each year they are enrolled in college or graduate school. Yet approximately 40% of high school seniors do not fill out the FAFSA, and a quarter of college and graduate students do not renew their application after their first year of studies.

There are several important FAFSA deadlines to be aware of. The federal deadline for the 2023-2024 academic year (this includes students beginning school in winter or spring 2024) is June 30, 2024. For the 2024-2025 academic year, students can submit the FAFSA once it opens in December 2023.

State deadlines vary, and many precede the federal deadline by one or several months. Applying early can increase your chance of receiving additional financial aid from your home state in the form of grants or scholarships.

Dependency Status

An applicant’s dependency status is determined by 10 questions found at StudentAid.gov/dependency. Even if your parents claim you as a dependent for tax purposes, you may still qualify as an independent for federal financial aid. You most likely qualify for independent status if you meet any of the following requirements when filling out the FAFSA:

•   At least 24 years old

•   Married

•   A graduate or professional student (law, medicine, etc.)

•   A veteran or active member of the armed forces

•   An orphan, ward of the court, or emancipated minor

•   Claiming legal dependents other than a spouse

•   Homeless or at risk of becoming homeless

Your dependency status affects how much financial aid you’re eligible to receive. In many cases, independent students can be eligible for more financial aid, as they are assumed to be paying their own tuition and living expenses.

Still, dependent students may be eligible for a variety of financial aid opportunities from federal or state governments and colleges through the FAFSA. Most incoming and current undergraduate students are considered dependent. This means that information from parents or guardians, such as tax returns, must be submitted and will affect whether financial aid is awarded and how much.

In special circumstances, students may file for a dependency override. These are awarded case by case, and are typically reserved for students facing exceptional family-related issues or whose parents are unwilling to provide information for the FAFSA.

Expected Family Contribution

Expected Family Contribution, or EFC, primarily applies to dependent students. The EFC calculates eligibility and aid based on several financial and demographic indicators, including:

•   A family’s taxed and untaxed income

•   A family’s assets and benefits (unemployment and Social Security, for example)

•   Family size and number of dependents enrolled in or likely to attend college

This calculation determines need-based and non-need-based aid eligibility and amount, rather than a figure a family is expected to pay toward education. Typically, a lower EFC translates to greater financial aid eligibility as a result of higher need.

Starting with the 2024-2025 school year, the EFC will be replaced by the Student Aid Index, or SAI. It fulfills the same basic purpose but works a little differently. You can learn more about the upcoming Student Aid Index here.

Cost of Attendance

Education costs can vary considerably based on merit-based scholarships, in-state vs. out-of-state residency, and other factors. The amount of FAFSA money you receive will also depend on the cost of attendance for your chosen college or university.

The cost of attendance encompasses tuition, fees, room and board, books and school supplies, and expenses associated with child care or disabilities, if applicable. A lower cost of attendance usually translates to less aid, because the funding can be used only for education purposes.

Not sure where you want to apply? Our College Search tool can help.

How Much Money Will I Get From FAFSA?

The amount of FAFSA money you receive cannot exceed the cost of attendance for your chosen college or university.

Before applying, the Federal Student Aid Estimator is a useful tool to estimate the amount of federal student aid you may qualify for.

Assuming that you meet the eligibility criteria and are applying on time, you may receive some form of federal financial aid, especially if your EFC is less than your cost of attendance. Potential sources of federal student aid include the following programs:

Grants

Unlike loans, grants are free money to put toward your education that does not have to be paid back. After completing the FAFSA, students with proven financial need may receive aid in the form of a Federal Supplemental Educational Opportunity Grant or Pell Grant. Opportunity grants are allocated based on need, other aid awarded, and college budgets. Pell Grants change annually but can be as high as $7,395 for the 2023-2024 academic year.

Work-Study

Federal work-study programs typically involve a part-time job on or off campus. Wages are set by the college but must meet minimum-wage requirements. Work-study schedules are intended to be structured around students’ classes.

Federal Loans

Eligibility for federal student loans is generally broader than for grants and work-study programs. Federal loans are either subsidized or unsubsidized, with subsidized loans being need-based and including interest deferment and grace periods. On the other hand, unsubsidized loans begin accruing interest as soon as they are paid out to borrowers.

Different types of federal student loans exist, and each has a maximum award amount according to dependency status and year of study. Dependent undergraduate students have an aggregate loan limit of $31,000. Independent undergraduates can take out $57,500, and graduate students can borrow up to $138,500.

How Else Can I Pay for College?

If financial aid isn’t enough to cover your tuition and other education expenses, there are ways to make college more affordable.

Scholarships and Grants

Besides scholarships granted by your chosen college, there are opportunities offered by private foundations, community groups, and nonprofit organizations. Awards can be given based on academic merit, need, field of study, or participation in a specific sport or activity. Our Scholarship Search tool can help you unearth available awards filtered by school type, field of study, state, and more.

Try to stay on top of scholarship and grant applications and deadlines as they can come and go quickly. Winning a scholarship or a grant is basically finding free money, and you don’t want that money to go unclaimed.

Private Student Loans

Students who cannot pay for college with scholarships and federal aid alone can apply for private student loans from various financial institutions, including banks, credit unions, and online lenders. Interest rates, forbearance, and other terms and conditions can vary, so shop around to compare loan rates and terms.

SoFi’s no-fee private student loans are an option for students to help pay for college and graduate school. Flexible repayment plans can ease the search for a loan that works with a student’s budget and financial plan.

Learn how you can help pay for your education with private student loans from SoFi.

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SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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If you’re like most Americans, you love your plastic and swiping or tapping through your day. In fact, about 84% of Americans have at least one credit card, with the average wallet holding three.

The national love affair with credit cards is built on their convenience, how they provide a line of credit to enable buying things we can’t quite afford to pay for with cash, and those enticing rewards that are often offered.

But the picture is not altogether rosy: As a nation, US citizens have more than $1 trillion in credit card debt. And with interest rates averaging over 20%, that debt can be hard to chip away at.

To help you better understand how credit cards work, how much credit card debt people typically have, and what are smart strategies for paying down credit card debt, keep reading. You’ll learn interesting facts as well as helpful hints.

10 Facts About Credit Card Debt

Ready to learn more about credit card debt, a form of revolving debt? These 10 credit card facts will help you better understand who has how much debt and where difficulties paying the balance typically crop up.

1. More Than Half of Americans Have Outstanding Credit Card Debt

A majority of active credit card accounts carry a balance, according to the American Bankers Association. The specific figure is 56%. This indicates that carrying a balance is a common situation for many Americans, even with the eye-wateringly high interest that’s charged.

Recommended: Tips for Using a Credit Card Responsibly

2. Households with Credit Card Debt Owe an Average of Almost $8,000

American families had an average credit card balance of $7,951, according to calculations using Federal Reserve Bank of New York and US Census Bureau data. In 2013, that figure was $5,508.

Just because this is the norm, it doesn’t mean that it’s ideal: The best-case scenario is to only charge as much as you can afford to pay off in full every month.

3. It Can Take More Than a Decade to Pay Off $7,951 in Debt

Racking up credit card debt takes much less time than getting rid of it. Let’s assume that like the average American, you have $7,951 in credit card debt, as noted above.

At the current average interest rate of 21.19% on existing accounts, with a $150 monthly payment, it would take you 158 months — or 13 years and two months — to pay that off. And you would pay $15,606.40 in interest, or almost twice the original amount you charged!

But the more you can pay each month, the faster you’ll extinguish the debt. In this example, if you increase your monthly payment to $500, you’d pay off the debt in just a year and seven months and only spend $1,465.06 in interest. These scenarios are, however, assuming that you are not accruing new debt and therefore paying off larger credit card bills.

4. Gen Xers Have the Most Credit Card Debt

Ready for more credit card facts? Here is how age and debt intersect. Gen Xers, the generation that includes people born between 1965 and 1980, have the highest average credit card balance: $9,589. Next in line are Baby Boomers, born between 1946 and 1964, who have somewhat less debt — $8,192 on average — than Gen Xers.

5. Alaskans Have the Highest Credit Card Debt

In a state by state analysis of credit card debt, Alaska residents led the pack with $7,324 per person. Those who live in Wisconsin were found to have the lowest at $4,987.

6. 42% of College Students Have Credit Card Debt

The habit of carrying credit card debt unfortunately starts early, with more than four out of 10 college students carrying a balance on their credit cards. Of these, 28% say their debt exceeds $2,000. They say they accumulated that amount due to nonessential purchases, such as impulse buys, Uber rides, or fancy coffees.


💡 Quick Tip: To avoid paying interest, pay off your credit card bill in full and on time each month. Only making the minimum payment each month can lead to paying a lot in interest over time.

7. One in Three Americans Owes More On Credit Cards Than They Have Saved

This may be a scary fact about debt, but one in three US adults owes more on their credit card than they have saved. In fact, 36% say this is the case, versus just 22% a year earlier. That shows a two-sided problem: too much spending and too little saving.

Recommended: Paying Off $10,000 in Credit Card Debt

8. Richer People Have Credit Card Debt Longer

More interesting credit card debt facts: People who earn more than $100K a year are more than two times as likely as lower earners to have credit card debt for five years or longer. Among six-figure earners, 72% say they have had debt for at least a year vs. 53% of those who earn less than $50,000 per year. When considering those who’ve held credit card debt for five years or more, you’ll find that 27% of the high earners vs. 13% of the lower earners are in that situation.

Perhaps this statistic suggests that high-earners feel they have the means to handle debt and therefore don’t rush to repay it.

9. Men Have More Debt Than Women

Men have an average of $6,357 in credit card debt, while women have an average of $6,232. Perhaps not a huge difference, but so much for the myth of women shopaholics using credit cards to fill an overflowing closet with shoes.

There are many potential reasons for this difference, but some studies have found that women are less comfortable with debt.

10. There’s a Good Chance You’ll Die With Credit Card Debt

Here’s the last of these debt facts, and it can be a grim one: Nearly three-fourths of Americans are in debt when they die, according to one benchmark study.

And 68% die with credit credit card balances — more than the share who have mortgage debt (37%) or car loans (25%) when they pass away. That’s not exactly a desirable legacy. Although family members don’t generally become responsible for the debt, it may be taken out of the deceased person’s estate.

Why Is Credit Card Debt So Common?

There are many reasons that Americans have so much credit card debt, from rising healthcare and educational costs to lack of emergency savings to a cultural consumerism that encourages people to live beyond their means.

Regarding that last point, you may hear about the phenomenon referred to as Fear of Missing Out or FOMO spending, which is a modern version of “keeping up with the Joneses.” In other words, because your friends, coworkers, or influencers you follow on social media are buying something, you feel you should as well.

Or perhaps part of the problem can be explained by what is known as lifestyle creep. This situation occurs when you earn more money but your spending rises too, so your wealth doesn’t grow. For example, if you took a new, higher-paying job and decided to lease a luxury car or take a couple of lavish vacations, your wealth wouldn’t increase, though your credit card balance might.

Tips on Avoiding Credit Card Debt

Perhaps these facts about debt will motivate you to work on avoiding a credit card balance. If so, the following strategies could help.

•   Review different budgeting methods, and find one that works for you. Many people use the popular 50/30/20 budget rule, for example. Also, see if your bank offers tracking and budgeting tools to help you rein in spending.

•   Gamify savings. You might try sleeping on it rather than making impulse buys to see if the urge to spend passes; it often does. Or go on a spending freeze for a specific period of time or for a certain kind of purchase (say, no dining out in March; no clothing purchases in April).

•   Try buying with cash or your debit card vs. plastic. That will help prevent your debt from snowballing.

•   Consider trying a balance transfer card, which typically gives you a period of zero interest during which time you can pay down what you owe.

•   In terms of a debt payoff strategy, you might investigate getting a personal loan with a lower rate than what your card charges. That could allow you to pay off the plastic debt and then have more manageable monthly payments.

•   Seek help if you are really struggling to get your debt under control. Nonprofit organizations can help you accomplish this.

Opening a Credit Card

Now that you know some facts about credit card debt and ways to pay it off, you may be looking for a new card that better suits your financial and personal goals. Shopping around to compare features, such as interest rates and rewards, can be a wise move.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

What are the main causes of credit card debt?

Credit card debt can crop up in a variety of ways. Sometimes it’s because expenses get pricier, whether due to lifestyle creep or inflation. Other times, it’s not being mindful about daily spending and making impulse buys. Given how many Americans have more credit card debt than money saved, it’s a common but challenging issue.

How much does the average person have in credit card debt?

Credit card debt facts reveal different angles on this number. The average American household has $7,951 in credit card debt. Some studies put the individual figure at $5,573.

How serious is credit card debt?

Credit card debt can be very serious. It’s high-interest debt, and it can be difficult to pay off. It can make it hard for individuals to save for their future and can negatively impact their debt to income ratio, which can be an issue when applying for loans.

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Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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If you’ve been denied a personal loan recently or don’t think a personal loan is right for you, you might feel at a loss as to how to cover a large expense or fund a major project.

The good news is, there’s no shortage of personal loan alternatives that suit a variety of situations. Let’s take a closer look.

Credit Card

A credit card offers you a line of credit that can be used for a variety of purchases. You can borrow up to a set credit limit, and each month that you carry a balance, you’ll owe at least the minimum payment. Credit cards are generally seen as a better option for smaller, everyday purchases, while a personal loan may make more sense for larger, more expensive items, such as a house or car.

Using a credit card responsibly can be a good way to establish your credit history, so long as you make timely payments each month. And some cards may come with perks, such as rewards points or travel rewards.

On the downside, if you don’t pay off the full balance of your credit card each month when it’s due, then your balance will accrue interest. (And credit cards typically have higher interest rates than personal loans.) If you continue to make charges on the credit card while only making minimum monthly payments, then it will take you even longer to pay off the balance. To find out how much interest you’ll pay on any balance, you can use a credit card interest calculator.

Applying for one credit card can ding your credit score by just a few points. But applying for multiple cards at once could raise red flags for lenders and can drag down your credit score.

Pros

•   Can tap into funds as needed and repay as you go

•   Can build credit as long as you make on-time payments

•   Some cards come with perks such as rewards points and travel-related benefits

Cons

•   Can have higher interest rates than personal loans

•   May take you longer to pay off the balance if you only make the minimum payments

•   Applying for too many cards at once may hurt your credit

Recommended: Personal Loan vs. Credit Card

Personal Line of Credit

A personal line of credit is a type of revolving credit line that can be used for many different things. Like credit cards, a personal line of credit has a maximum credit limit, and borrowers are required to make a minimum monthly payment. Once the debt is repaid, money can be withdrawn once again. Personal lines of credit may be secured, which require collateral, or unsecured, which do not require collateral.

When comparing a personal line of credit vs. a personal loan, you may discover that a personal line of credit allows you to access money over time instead of all at once. This level of flexibility may reduce interest charges, because you’re only taking out the money you plan on using right away. And generally speaking, the interest rates on a personal line of credit tend to be lower than those on a credit card.

However, it can be difficult to qualify for an unsecured line of credit with a good interest rate, as they’re more risky for the lender. Plus, the flexibility of a line of credit could make it easy for borrowers to take on more debt or take longer to pay off what they owe.

Pros

•   Typically has a lower interest rate than credit cards

•   Funds can be used for a variety of purposes

•   You can access funds as you need them

Cons

•   May be difficult to qualify for an unsecured line of credit with a good interest rate

•   Can be easy to take on more debt or take longer to pay off the balance

Recommended: Personal Line of Credit vs. Credit Cards

Home Equity Loan

If you’re a homeowner and meet certain requirements, you may have the option to take out a home equity loan. This means you’re essentially borrowing against the equity you’ve built in your home.

Like a personal loan, funds from a home equity loan are disbursed in one lump sum, and you owe monthly payments for the life of the loan. Your home secures the loan, and because of that, lenders tend to offer a lower interest rate than they would on most unsecured loans. Interest rates are usually fixed.

It’s worth noting that repayment begins right away, and if you fall behind on your payments, you risk losing your home. In addition, the loan amount is set, so if you need more money, you’ll need to apply for another loan.

Pros

•   Low interest rate

•   Can borrow large amounts of money

•   Funds can be used for a wide variety of purposes

Cons

•   Risk losing your home if you fall behind on payments

•   Repayment begins immediately

•   Loan amount is set

Home Equity Line of Credit (HELOC)

Like a home equity loan, a home equity line of credit (HELOC) is secured by the equity you’ve built in your home, and your home is used as collateral.

One of the main differences is that a HELOC offers a revolving line of credit, which means you can tap into funds as needed and only pay interest on what you borrow. There are usually low or no closing costs involved with a HELOC, and the interest rate is likely to be variable.

There are some potential drawbacks to keep in mind when comparing HELOCs vs. personal lines of credit. For starters, you may have to pay closing costs on the loan amount, though some HELOCs come with low or zero fees. Your interest rate will likely change with the federal funds rate, which means that over time, your monthly payment amount may fluctuate. Also, if you fail to make payments and the loan goes into default, you risk losing your home.

Pros

•   Only borrow what you need

•   Lower initial interest rates than unsecured loans

•   Repayment terms can be flexible

Cons

•   Can lose your home if the loan goes into default

•   Variable interest rates

•   Can be upside-down on your mortgage (i.e., you owe more on your home than what it’s worth)

Retirement Loan

Also known as a 401(k) loan, a retirement loan is a type of loan where you borrow from your retirement account and pay yourself back over time with interest. You can typically borrow against a 401(k), 403(b), or 457(b) retirement plan.

Per IRS guidelines, you can borrow up to $50,000 or 50% of your account balance, whichever is less. Unless you’re putting the money toward buying your primary residence, you have five years to repay your loan and need to make quarterly payments.

Pros

•   Don’t have to go through a lengthy application process

•   Doesn’t impact your credit

•   Loan repayments are automatically taken out of your paycheck

Cons

•   Can’t borrow more than $50,000

•   Missing out on compound interest and growing your retirement funds

•   If you file for bankruptcy, you’re still on the hook for paying off the loans

Peer-to-Peer Loan

Also known as social lending or crowd lending, a peer-to-peer loan (P2P loan) is a financing model where individuals borrow from others through an online platform. In turn, the financial institution is cut out of the picture, and individuals can borrow from individual investors or lenders.

The main draw for lenders is that they might earn more on the interest than if they put their money in a savings account. Borrowers might be eligible for lower interest rates or less-strict lending criteria. What’s more, the funding process is often quicker than going through a bank — an application may be approved within minutes and funds disbursed within a few business days.

Pros

•   Flexibility in how funds can be used

•   Speedy funding process

•   May qualify with fair credit

Cons

•   Often have origination fees (up to 8% of the loan)

•   Might have a higher interest rate

•   Might have late fees

Salary Advance

If you have an urgent financial need or personal emergency, you might be able to get part of your future paycheck now. In essence, it’s a loan from your employer, with the expectation that you’ll pay it back.

Your company might charge a fee or interest rate to cover the extra paperwork and accounting. However, it could be a solid way to pay for an emergency, provided you know the terms, restrictions, and what a salary advance entails.

Pros

•   Easy repayment methods (i.e., funds are automatically deducted from your paycheck)

•   Can provide easy, quick access to funds

•   Interest rates may be lower than other types of loans

Cons

•   Not offered by all employers

•   May need to meet eligibility requirements, such as a minimum number of years of employment and no previous paycheck advance requests

•   Might get complicated if you leave your job and haven’t repaid the advance

•   Smaller-than-usual paychecks could make it more difficult to make ends meet

Mortgage Refinance

A mortgage refinance is when you’re swapping your current mortgage for a new one. There are different reasons why this route might be attractive for you, such as locking in a lower interest rate or a lower monthly payment. With a cash-out refinance, for example, you replace your existing mortgage with a new mortgage for more than the previous balance. You receive the difference in cash.

Pros

•   You can receive a tax break if funds are used for home improvements

•   Can have relatively lower interest rates than other types of financing

•   Can stretch out your repayment period

Cons

•   Can risk foreclosure if you aren’t able to keep up with payments

•   Will need to pay closing costs

💡 Quick Tip: In a climate where interest rates are rising, you’re likely better off with a fixed interest rate than a variable rate, even though the variable rate is initially lower. On the flip side, if rates are falling, you may be better off with a variable interest rate.

Small Business Loan

If you plan on using a personal loan for business-related reasons, you might consider a small business loan instead. There’s no shortage of financing for small businesses, and lenders include banks, credit unions, online lenders, P2P platforms, and loans backed by the Small Business Association (SBA).

The requirements, loan amounts, and options might vary widely among lenders and loan types. But in general, lenders will look at your personal credit score, finances, and debt-to-income ratio. You’re also often required to provide a business plan.

Pros

•   Longer repayment terms

•   Flexible business-related uses

•   Typically have better interest rates

Cons

•   Slower financing times

•   Rigorous documentation requirements

•   Might need to provide collateral

The Takeaway

There are pros and cons of personal loans, so if you decide to explore other funding options, rest assured there’s no shortage of personal loan alternatives. Examples run the gamut from home equity loans and HELOCs to personal lines of credit and credit cards and more.

By knowing what’s out there and weighing the advantages and disadvantages of each, you’ll stand a stronger chance of figuring out what is best suited for your needs, preferences, and situation.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

FAQ

What alternatives to personal loans are the most popular?

The most popular options for personal loans are credit cards, retirement loans, home equity loans, home equity lines of credit (HELOCs), peer-to-peer loans (P2P), and a cash-out refinance.

Each option has its pros and cons and different lending requirements. And each may be better suited for specific borrowers.

Why would you need to use an alternative to a personal loan?

You might need a personal loan alternative if you don’t qualify for a traditional personal loan, or, if, after doing your research, you’ve found that it isn’t the best option for your needs.

Can you use personal loan alternatives even if you have a personal loan?

Yes, you can use personal loan alternatives if you currently have a personal loan. However, if you have multiple loans, it’s important to ensure you can keep up with the payments.

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Photo credit: iStock/zamrznutitonovi

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Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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About one in seven Americans has unclaimed funds lurking somewhere. In fact, there’s an estimated $70 billion in unclaimed assets in the United States. Typically, the amounts people receive when retrieving this money can be small (say, $20) or, in rare cases, it can be a significant amount of six figures or higher.

States typically manage these funds, which can come from forgotten bank accounts, pensions, insurance benefits, wages, savings bonds, and other sources.

If you’re wondering whether there’s any money out there that belongs to you, read on. This guide will walk you through where unclaimed money may be hiding and how to claim it.

How to Find Unclaimed Money 5 Ways

Money usually remains unclaimed because owners have no idea it exists. That’s why it may be worth searching for unclaimed funds in your name just in case. So how do you go about it? Unfortunately, there’s no single place you can look for all potential unclaimed cash. It may take some work, but here are some steps you can take to help make sure you’re claiming everything that’s yours.

1. Searching State Databases

A good first step may be to hunt for unclaimed funds at the state level. Each state has an office that oversees unclaimed property, typically housed in the state treasurer’s, controller’s, or comptroller’s office. You can link to your state by visiting the website unclaimed.org, which is run by the National Association of Unclaimed Property Administrators.

Don’t forget to search your name in the database of each state where you have lived, not just the one where you live now. Make sure that you are searching the official state site (it should have .gov in the URL) to avoid scams. If you are married and changed your name, you may want to consider searching under your maiden name too.

You can continue your search by checking MissingMoney.com, which offers a multi-state database endorsed by the National Association of Unclaimed Property Administrators.

All of these searches are free to complete. If someone asks you for money to complete a search, that’s a red flag. There’s no reason to pay to access money that’s yours, unless there is a small processing fee.

If you happen to find unclaimed property, each state has its own process for proving that you’re the true owner and getting your hands on the cash. Many states allow you to file a claim electronically.

Usually you need to provide some kind of official documents to prove that you’re the person named as the owner. Luckily, there is typically no time limit for claiming the money. If the owner has died, you can often claim funds from a deceased relative. You can typically file a claim if you’re an heir, trustee, or executor of the estate.

2. Looking for Unpaid Wages and Pensions

Here’s another possibility in terms of how to find unclaimed funds: Hunt for back pay. If your employer owes you back wages, you can search the Department of Labor’s database. Start by inputting the name of the employer. You typically have to move quickly in this case, since the agency only keeps unpaid wages for three years.

You can also look for pensions from a former employer. Pension funds may be unclaimed if a company closed its doors or ended a particular pension plan. You can look for funds through the website of the Pension Benefit Guaranty Corporation, which is a government agency.

3. Checking for Unclaimed Tax Refunds

If you think you may have failed to receive a tax refund at some point, you can track that down through the Internal Revenue Service’s website. Keep in mind that you will need to know the exact refund amount in order to conduct the search.

4. Searching for Insurance Funds

Many insurance companies transfer unclaimed funds to states, but a couple of federal government agencies maintain their own unclaimed funds databases. The U.S. Department of Veterans Affairs holds onto unclaimed VA life insurance funds for most policyholders and, if they’re deceased, their beneficiaries.

People who had mortgages insured by the Federal Housing Administration can check for potential unclaimed refunds on the website of the U.S. Department of Housing and Urban Development.

5. Finding Savings Bonds

Another potential place to find unclaimed funds could be in forgotten or lost savings bonds. To check whether you have a bond that has reached maturity, check the government’s website Treasury Hunt. You’ll be prompted to enter your Social Security number and your state.

The site also offers advice on finding lost, destroyed, or stolen savings bonds.

•   FDIC and Closed Banks You may also want to see if you have any money that is in a lost bank account or one that was held at a now-closed bank. It’s a very rare occurrence, but bank failures do occasionally happen. If you believe you had funds in one that you never received, you can contact the FDIC Claims Depositor Services at 888-206-4662, option 2.

Being Aware of Scams

Where there’s free money, there are bound to be con artists trying to take advantage of it. Some companies may offer to help you find unclaimed funds and recover the money for a percentage of the amount owed you. Be cautious: These can be scams. Paying these fees is pointless, since you can search for unclaimed property and reclaim it for free (or perhaps for a small processing fee to the state).

The IRS recently warned of another kind of unclaimed money scam, in which a letter arrives, claiming to be from the government, alerting you to a refund you have not yet accessed. This fraudulent communication then says that your banking details are needed to receive the money. If you send that sensitive information, you could end up losing money and having your accounts compromised.

Using Your Unclaimed Money

If you happen to be one of the lucky people who finds cash waiting for them, what should you do with it? You may be tempted to blow the surprise windfall on those new shoes you’ve been eyeing or on a dream vacation.

But depending on the sum you receive and your financial situation, there may be smarter ways to put the unexpected money to use. Consider these possibilities.

Paying Off Debt

If you have high-interest debt, many people suggest putting much of your extra cash toward knocking it out. That’s because interest rates can cause a balance to balloon significantly over time, meaning the longer you wait to pay off your high-interest debt, the more you’ll likely pay overall.

Credit cards and payday loans tend to have high interest rates, but you may also want to check the rate you’re paying on your student loans, car loan, personal loan, or mortgage. One method for potentially paying off your debt faster is to tackle your highest-interest debt first, while staying on top of minimum payments for your other liabilities.

Building An Emergency Fund

Once you’re on top of your debt or at least the highest-interest liabilities, it may be a good idea to establish or pump up an emergency fund.

Financial experts suggest having enough saved to cover three to six months’ worth of living expenses.

It may be a good idea to keep this money in a safe place, like a high-interest savings account, for unexpected emergencies such as car repairs, medical bills, or a layoff. Having an emergency fund may help you avoid getting into high-interest debt in the future since you have that cash cushion to see you through challenging times.

Saving for a Goal

Once you have a basic emergency fund, you may want to start setting aside money to get closer to a big financial goal. Maybe you want to have a wedding, travel, start a business, or buy a home.

Saving in advance means you may need to take out less in loans or pay less in credit card charges. Or you might be able to avoid them altogether, keeping more of your money in your pocket.

Investing for the Future

Another option is to invest your money in an individual retirement account, college savings plan, brokerage account, or another financial vehicle.

Investing your money for the long-term could allow you to take advantage of the power of compounding returns and potentially increase your chances of reaping solid growth over time. It can be tempting to spend your lucky find on short-term fun, but investing may set you up for financial freedom in the future.

Recommended: Weird Ways to Make Money

The Takeaway

How do you find unclaimed funds? Typically, it involves searching on websites to see what pops up. These are usually specific to the kind of money that is sitting unclaimed, whether that means going searching for tax refunds, the contents of closed bank accounts, back wages, or insurance payments.

Whether it’s deciding what to do with reclaimed cash, if you’re owed any, or figuring out how to afford a big goal, life poses plenty of personal finance challenges. Finding the right financial partner can be an important step in making your money work harder for you.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.00% APY on SoFi Checking and Savings.

FAQ

What is the best website to find unclaimed money?

Using a website to find unclaimed money will depend somewhat on the source of the unclaimed funds, such as whether it’s from an insurance claim, a forgotten safety deposit box, or other source. One good place to start can be unclaimed.org, which is run by the National Association of Unclaimed Property Administrators.

What happens if money is unclaimed?

When money is unclaimed, it often goes through a dormancy period (perhaps five years), after which the state takes control of the funds.

How do you claim unclaimed money from the IRS?

If you were expecting a federal tax refund and didn’t receive it, visit the IRS’ Where’s My Refund page and/or call their helpline at 800-829-1040. For state taxes, contact your local Department of Revenue by checking this website.

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SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
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SoFi members with direct deposit activity can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.00% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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