Debt consolidation – Blog Campcee Mon, 21 Nov 2022 15:58:00 +0000 en-US hourly 1 Debt consolidation – Blog Campcee 32 32 How fiscal restraint can help fight inflation Mon, 21 Nov 2022 14:53:14 +0000

Government support was essential to help individuals and businesses survive pandemic-related lockdowns and support economic recovery.

When inflation is high and persistent, broad-based fiscal support is not warranted. Most governments have already reduced their support for the pandemic, as reported in our October Financial Review.

While many people are still struggling, governments should continue to prioritize helping the most vulnerable to meet soaring food and energy bills and cover other costs, but governments should also avoid d to increase aggregate demand which risks pushing up inflation. In many advanced and emerging economies, fiscal restraint can reduce inflation while reducing debt.

Fiscal consolidation, debt limitation

Central banks are raising interest rates to dampen demand and contain inflation, which in many countries is at its highest level since the 1980s. Since rapid price increases are costly for society and detrimental stable economic growth, monetary policy must act decisively.

If monetary policy has the tools to control inflation, fiscal policy can clean up the economy in the long term through investments in infrastructure, health care and education; a fair distribution of income and opportunities through an equitable tax and transfer system; and the provision of basic public services. However, the overall fiscal balance affects demand for goods and services and inflationary pressures.

A lower deficit cools aggregate demand and inflation, so the central bank does not need to raise rates as much. Moreover, with tight global financial conditions on budgets and public debt ratios above pre-pandemic levels, reducing deficits also addresses debt vulnerabilities.

Conversely, fiscal stimulus in the current high inflation environment would force central banks to apply the brakes harder to curb inflation. In an environment of high public and private sector indebtedness, this can increase risks to the financial system, as described in our Global Financial Stability Report in October.

Demonstrate alignment

In this context, policymakers have a responsibility to provide strong protections to those who need them, while reducing elsewhere or generating additional revenue to reduce the overall deficit. Fiscal responsibility – or even consolidation if necessary – shows that policymakers are aligned against inflation.

When fiscal adjustment is sustained, ideally through a medium-term fiscal framework that outlines the direction of policy over the next few years, it also responds to looming pressures on debt sustainability. These include aging populations in most advanced and several emerging economies, and the need to replenish buffers that can be deployed during future crises or economic downturns.

In our research, we use a stylized two-country model (where the “home economy” can be the United States or a group of advanced economies). We are looking at two different approaches to curbing inflation. The first relies exclusively on monetary tightening to cool the overheated economy, while the second involves fiscal consolidation. Both are constructed to have similar effects on economic growth, and each is effective in reducing inflation. In the first case, higher interest rates and weaker growth contribute to the increase in public debt. Meanwhile, the currency is appreciating as higher yields attract investors.

In the second approach, fiscal tightening dampens demand without the need to raise interest rates, so that the real exchange rate depreciates. And with lower debt servicing costs and lower primary deficits, public debt is falling. The appreciation of the real exchange rate under a more restrictive monetary policy implies that inflation falls a little more, but this difference would decrease if more countries pursued these policies.

In the face of high food and energy prices, governments can improve their fiscal position by shifting from generalized support to helping the most vulnerable, ideally through targeted cash transfers. Since supply shocks are long-lived, attempts to limit price increases through price controls, subsidies, or tax cuts will cost the budget dearly and ultimately not be effective. Price signals are essential to promote energy conservation and encourage private investment in renewable energy.

The desirable fiscal stance and the measures that underpin it will depend on country-specific circumstances, including current inflation rates and longer-term considerations such as debt levels and development needs. In most countries, higher inflation strengthens the case for fiscal discipline, calling for raising revenue or prioritizing spending that preserves social protection and growth-enhancing investments in human or physical capital.

International sizes

In the United States, the disinflation of the early 1980s under Federal Reserve Chairman Paul Volcker illustrated the challenges of controlling inflation. Inflation had become entrenched at high levels and fiscal policy was expansionary. The Fed had to raise its rates sharply to contain inflation, causing a collapse in real estate investment and a historically significant appreciation of the dollar. Manufacturing has been hit hard, leading to calls for trade protectionism.

This historic episode is relevant for many countries facing similar challenges today. A more balanced removal of stimulus measures, including fiscal restraint, can reduce the risk that parts of the economy, especially those most sensitive to interest rates, will be disproportionately affected or that the currency will fluctuate sharply. exacerbate trade tensions.

It would also reduce the risk globally. Less abrupt increases in interest rates would imply a more gradual tightening of financial conditions and mitigate risks to financial stability. This would tend to limit negative spillovers to emerging market economies and reduce the risk of sovereign debt distress. Avoiding strong appreciation of the US dollar or other major currencies would also reduce pressure on emerging markets borrowing in those currencies.

As many central banks tighten policy in response to the large and persistent rise in global inflation, the policy mix matters. Fiscal moderation will reduce the cost of getting inflation back to target quickly, compared to the alternative of letting monetary policy act alone.

Foot Locker: Consumers want affordable luxury and fun Fri, 18 Nov 2022 15:38:32 +0000

Consumers’ desires for affordable luxury and a fun shopping experience are driving sneaker sales, even in the face of inflation and uncertainty, sports retailer says Foot locker said Friday (November 18) during its quarterly earnings call.

Consistent with those trends, the company performed better than expected in a volatile macroeconomic environment in the quarter ended Oct. 29 and raised its outlook for the rest of the year, according to an earnings release.

Total sales were up 3.3% year-over-year in constant currency terms, and same-store sales were up 0.8% from last year’s record results, it said. the company in the press release.

“Sneakers are an affordable luxury – a dynamic that we believe helps maintain our category’s resilience in the face of strong inflationary pressures,” said Foot Locker Chairman and CEO. Mary Dillon said during the call.

Foot locker actions were up 13% early Friday.

The sneaker category is driven by enthusiasts’ passion for products, a desire for individual expression, and a love of novelty and innovation.

“Sneakers are fun,” Dillon said.

Shoppers in this category value both physical and online experiences, and they want products to be fun to buy, she added.

In stores, Foot Locker’s Frontline store associates love sneaker culture, are experts in the category and create energy in stores, she said.

Online, the company’s Instagram following is five times larger than the combined total of its top four competitors, according to a presentation published at the same time as the call.

Going forward, Foot Locker will primarily focus on its omnichannel capabilities, loyalty program, overall digital marketing strategies, and the technology platform that enables these features.

“Our current omnichannel customers in the US spend nearly four times the amount of our single-channel shoppers, yet they only represent 6% of our customer base,” Dillon said. “This represents a vast opportunity to improve our engagement with customers across all of our channels and attract more of their spend.”

With its better than expected results in the last quarter, Foot Locker has improved its outlook for the remainder of 2022.

“This is a growth category with a long track ahead of us,” Dillon said. “We’re at the intersection of sport, fitness, fashion and societal insecurity, and I think the tailwinds for sneakers will persist for many years to come.”

For all PYMNTS retail coverage, subscribe daily Retail newsletter.

How consumers pay online with stored credentials
Convenience drives some consumers to store their payment credentials with merchants, while security concerns give other customers pause. For “How We Pay Digitally: Stored Credentials Edition,” a collaboration with Amazon Web Services, PYMNTS surveyed 2,102 US consumers to analyze the consumer dilemma and reveal how merchants can overcome holdouts.

Is a payday advance from a bank better than a personal loan? Sat, 12 Nov 2022 12:32:34 +0000

Image source: Getty Images

We’ve all come across an unexpected expense from time to time.

Key points

  • 60% of Americans couldn’t cover a $400 emergency expense without going into debt.
  • If you need cash fast and your bank offers payday advances, it might be worth looking into.
  • A personal loan has other advantages, however, such as a higher borrowing limit and a lower interest rate.

Many of us have been there. You had a car accident, and now you have to pay the mechanic to fix it. This unexpected expense will cost you a few hundred dollars and, like 60% of Americans, you won’t be able to cover it with your savings. Plus, you only have money for the bare necessities left in your checking account, and your next payday is days away. What should you do?

You have a few options in this situation. Read on to learn more about bank payday advances versus personal loans, and how to decide which is right for you.

What is a salary advance?

A payday advance loan from a bank or credit union is called a small amount loan. These are loans of an amount generally between $100 and $1,000, granted by a bank to account holders. The intention is to give consumers an alternative to predatory payday loans (see below) when they are in a financial bind. If your bank offers them, you’ll get the money you need quickly and pay it back from your next paycheck via direct deposit, or over a period of weeks or months. You will have to pay a fee (either a fixed dollar amount or a small percentage of what you borrow) and interest for the service.

Discover: These personal loans are the best for debt consolidation

More: Prequalify for a personal loan without affecting your credit score

You may soon hear more about payday advances; a Bloomberg Law report in early October 2022 noted that federal regulators want banks to be able to offer them, but banks need more guidance from regulatory agencies moving forward. Personal loans, on the other hand, are already reliably available for your emergency borrowing needs.

What is a personal loan?

A personal loan is a fairly easy way to borrow a lump sum of money. They usually come with lower interest rates than many other quick cash solutions, like credit cards or payday loans (and certainly lower than payday loans). However, if your credit isn’t in top shape, you may not qualify for the best personal loan rates available.

Personal loans are generally in the amount of $1,000 to $100,000, and can often be funded fairly quickly after your application is approved. In some cases, you can get the money the same day or the next day. Is there another way to borrow money fast? Yes, but you probably want to stay away.

Try to avoid payday loans

Although it may seem counterintuitive (after all, there’s “payday” in the name), it’s a good idea to avoid payday loans. And depending on where you live, they may be illegal in your area; they have been banned in 13 states and the District of Columbia. Payday loans are small, short-term loans of $500 or less, usually with a very high interest rate.

As of 2022, typical payday loan rates range from 28% to 1,950%. These loans often lead consumers into a cycle of debt from which they cannot easily escape. Can’t repay your loan on your next payday? That’s fine, the lender will turn it into a new payday loan for you! How nice of them. Your best choice is probably a payday loan or a personal loan.

How do you choose?

There are a few things to consider when choosing between a payday advance and a personal loan.

How much money do you need?

A payday advance loan, if you can get one from your bank or credit union, is probably best for borrowing smaller amounts. If your auto repair bill is $350, but the smallest personal loan amount you can take out is $1,000, that’s not ideal. If your surprise expense is larger, you’ll likely get a better interest rate with a personal loan (plus, payday loans from your bank may be capped at $500).

How fast do you need it?

If you can wait a few days and have good credit, you may be better off with a personal loan – again, because of interest rates. That said, if your bank offers payday advance loans, they might approve you fairly quickly if you’re an existing customer in good standing. It has already registered you and can access your finances in the form of your bank account(s). Plus, your bank can easily send the money you borrow directly to your account.

How long do you need to pay it back?

This is where a personal loan probably has the advantage. You will have more time to repay a personal loan (months to years) than a payday loan (weeks to months). But again, a lot depends on the amount of money you need to borrow.

Payday advance loans and personal loans have their place, and if you ever get into trouble and need to borrow a relatively small amount of money, both are worth considering. However, it is definitely in your best interest to avoid payday loans.

The Ascent’s Best Personal Loans for 2022

Our team of independent experts have pored over the fine print to find the select personal loans that offer competitive rates and low fees. Start by reviewing The Ascent’s best personal loans for 2022.

Purely Commentary: Free loan in Hebrew: Ready to help as recession looms Wed, 09 Nov 2022 21:00:48 +0000
David Contorer

Hebrew Free Loan Detroit (HFL) is here to help: HFL has been on our same mission since 1895: to provide interest free loans to improve the lives of Jews across Michigan.

Let’s Talk Turkey: Inflation continues as we pay more at the gas pump, in stores, for higher education and for just about everything. We are entering a global recession that could last for some time, as political divisions and war disrupt supply chains and impact each of us and our personal economy. While most goods and services cost more, our assets continue to lose value. Debt is growing as credit cards and high interest lenders charge sinking rates for many people in our community.

Hebrew Free Loan Detroit (HFL) is here to help: HFL has been on our same mission since 1895: to provide interest free loans to improve the lives of Jews across Michigan. HFL is here to partner with borrowers to provide the following resources:

-$10,000/year (undergraduate) and $15,000/year (graduate) to cover the cost of full-time attendance at colleges and universities in Michigan.

-$15,000 debt consolidation loans for eligible applicants who first go to Gesher (formerly JVS + Kadima) for a free consultation and thorough review of their credit report and financial situation. These loans are used to pay off high interest debt and improve credit patterns.

– Loans of $20,000 for in vitro fertilization (IVF), fertility, genetic testing and adoption.

-$100,000 to start or grow a small business.

Every Jewish candidate who comes to HFL is treated with dignity, respect and confidentiality. HFL has a caring staff and a board of helpful community leaders who understand and know our Michigan area with its resources, so we partner with our borrowers to try to find solutions. History has taught us that inflation and recessions happen in cycles, and that’s why HFL is ready now (and throughout this recession) to help members of Michigan’s Jewish community with our loans. without interest.

If you know of a Jewish Michigan resident who is willing to partner with us and who could benefit from an interest-free loan, please ask them to contact HFL at (248) 723-8184 or visit our website: www. You can also scan this QR code with your smartphone camera.

David Contorer is Executive Director of Hebrew Free Loan.

Crypto Miner Consolidation Imminent as Some Industry Players Struggle Tue, 01 Nov 2022 21:26:00 +0000

As more miners report dire financial pressures from low crypto prices, high energy costs and debt, a resumption of consolidation is inevitable, industry watchers have said.

After Core Scientific revealed in filings last week that it was considering bankruptcy, Argo Blockchain became the latest major bitcoin miner to reveal financial pressures, saying a planned capital injection of $27 million had failed.

A company spokesperson declined to comment.

As small and medium-sized companies struggle, large mining rig operators have expressed interest in buying opportunities. Possible acquirers include Marathon Digital, which previously said it was more focused on organic building than buying.

“We like to have an agile strategy…and the capitalization to be able to take advantage of opportunities like this,” Fred Thiel, CEO of Marathon Digital, told Blockworks.

Thiel declined to say whether the company has committed to Core Scientific or Argo, but he said Marathon will keep an eye on cheap hosting assets.

“Would Marathon participate, eventually, in the purchase of a hosting site? Thiel said. “Yeah, if the price is absolutely attractive. Or if it made strategic sense.

Argo Blockchain the last stress miner

Argo Blockchain said on Monday it no longer expects to receive the $27 million inflow of capital it expected from a “strategic” investor, which it declined to name. The capital was to be used in part for capital expenditures for continued construction of its flagship Helios facility in Dickens County, Texas. It is not known why the funding failed.

As Argo Blockchain explores other funding opportunities, the company sold nearly 4,000 new Bitmain S19J Pro machines to raise $5.6 million.

“If Argo fails to complete additional financing, Argo would become cash flow negative in the near term and would have to scale down or cease operations,” the company said.

NYDIG agreed in May to loan Argo up to $70.6 million to recapitalize the purchase of digital asset mining equipment for the Texas facility. It’s unclear if NYDIG was to provide the additional $27 million.

A NYDIG spokesperson did not immediately return a request for comment.

The move comes after Core Scientific said in filings last week that it would skip upcoming payments as it faces liquidity and operational issues. The miner said he hired advisers as he considered his options, including seeking relief through bankruptcy.

Crypto-mining data center operator Compute North filed for bankruptcy in Texas in September. The company owes up to $500 million to at least 200 creditors, according to a petition filed with the Southern District of Texas bankruptcy court.

Will miners survive the ‘perfect storm’ of pressures?

Chase White, an analyst at Compass Research & Trading, said in a research note published Tuesday that the company had lowered its price target for Argo from $4.50 to $1.

The stock price was $0.90 at 3:00 p.m. ET on Tuesday, down about 93% year-to-date and down 19% on the day.

“We believe [Argo] probably has enough cash to stay afloat for the next two quarters,” White said. “Part of the reason we thought [Argo] was in the process of raising share capital was to have sufficient cash to enter into a fixed price power purchase agreement (PPA) for its [Texas] opportunity to control electricity costs, which now seems to be irrelevant. »

Glyn Jones, CEO of Icebreaker Finance, said too much of the industry was focused exclusively on debt-fueled growth in 2020 and 2021 – while paying less attention to the cost of production.

Icebreaker launched a miner loan pool in September that it called “vertically integrated and positioned for success.” The loans, with interest rates between 15% and 20%, have a term of 12 to 18 months and are secured by assets such as mining rigs, power transformers and digital assets.

“We estimate that less than 25% of US hashrate is operating with the financial resilience to weather the full range of credible scenarios, including further hash price deterioration,” Jones told Blockworks. “More than perhaps any other industry, its economics dictate that only the most efficient operators will survive in the long term. No miner has greater pricing power, so it’s all about the cost of production.

Rising bitcoin mining difficulties and associated costs — along with looming debt — have created “a perfect storm” for many miners, Thiel said. He added that about 20 public miners could be at risk of bankruptcy due to current market conditions.

“If you were to look across the industry and [see] who has equipment financing, those are the ones with the highest risk today,” Thiel said. “Or those with a lot of debt service to do.”

Healthier miners seek buying opportunities

Bill Cannon, head of portfolio management for digital asset fund manager Valkyrie Investments, said the strongest companies in the mining space are likely to strengthen their positioning through cut-rate acquisitions.

Cannon expects mergers and acquisitions to pick up again this quarter and early next year as companies on the verge of insolvency scramble to retain at least some shareholder value — and keep their doors open.

“Consolidation is inevitable,” Cannon said. “All industries go through this, and we believe that the remaining miners will benefit from this period, in the same way that the Amazons and Googles of the world did after emerging from the ashes of the dot-com boom.”

Jason Les, CEO of Riot Blockchain, told Blockworks that his company is one of the “best positioned acquirers” in the industry. A number of companies, Les added, will go bankrupt or exploit the private markets and associated leveraged buyouts.

Those considering bankruptcy may want to take this route sooner rather than later, Thiel said.

“If you’re close to the risk of doing it, you better hurry,” he said. “The buyers of your assets are going to run out of money, because there are so many people ahead of you who are bankrupt.”

Get the top crypto news and insights of the day delivered to your inbox each evening. Subscribe to Blockworks’ free newsletter now.

  • Ben Strack

    Ben Strack is a Denver-based journalist who covers macro and crypto-native funds, financial advisors, structured products, and the integration of digital assets and decentralized finance (DeFi) into traditional finance. Prior to joining Blockworks, he covered the asset management industry for Fund Intelligence and was a reporter and editor for various local Long Island newspapers. He graduated from the University of Maryland with a degree in journalism. Contact Ben by email at [email protected]

9 signs your retirement is on the right track Sat, 29 Oct 2022 11:19:32 +0000
goodluz /

Nearly three-quarters – 73% – of American workers surveyed say they are “fairly confident” that they will have enough money to live comfortably in retirement. This includes 28% who are “very confident” that they are on track for retirement, according to the 2022 Retirement Confidence Survey conducted by Employee Benefit Research Institute (EBRI) and Greenwald Research.

Meanwhile, a third of workers and 24% of retirees surveyed are less confident they are on the right track due to the COVID-19 pandemic, according to the same survey. More than 2,600 adults, aged 25 and over, were surveyed to arrive at the results.

No matter which group you land in, staying on top of your retirement planning and progress is essential to ensure you have enough money for a comfortable retirement.

Wondering if your retirement planning is going as it should? Here are signs that your retirement is on the right track.

1. You save enough for retirement

man calculating his savings
Prostock-studio /

If you plan to work until age 65, you’ll need to produce 20 to 30 years of income throughout retirement, says Tom Martin, a certified wealth management professional at Vaylark Financial Services, a financial planning firm in Hartford. , Connecticut.

“If you need $75,000 a year to survive today, you’ll probably need $1.5 million to survive to age 85 or $2.25 million to survive to age 95. says Martin. He tells Money Talks News that if someone’s Social Security has to pay $24,000 a year, that could be $500,000 of the $1.5 million needed to cover costs until age 85.

If you have a funding shortfall, Martin suggests increasing retirement account contributions, cutting expenses, and/or scrambling to earn more.

“If you’re behind on your retirement goals in your 50s, you might want to give serious thought to not claiming Social Security until age 70,” says Martin. “By not claiming social security [until age 70]you can work into your 60s without worrying about reduced Social Security benefits and increased Social Security payments. »

2. You have automated retirement savings

An elderly couple take advantage of their retirement savings
Ruslan Gouzov /

If you’ve automated your retirement savings and set them up to grow each year, you’re probably well on your way to preparing for retirement, says Andrew Rosen, certified financial planner and president of Diversified LLC, a financial planning with offices in Delaware, Pennsylvania and Alabama.

“By automating your savings, you are prioritizing saving for your retirement,” Rosen told Money Talks News. “Adding an automatic increase ensures that you’ll adjust this savings amount each year for inflation. It’s still important to check how you’re saving, but automation takes the guesswork out of saving for retirement and makes it a habit.

To stay on track for retirement, Rosen suggests increasing automated contributions to your retirement accounts by 1-2% each year or 25% of any annual increase received.

3. Most or all of your debt will be paid off

Woman with cut out credit card
pathdoc /

Will you no longer have a mortgage, credit card debt, car loan or student loan when you retire? If so, that’s a positive sign that this important part of your retirement is on the right track.

On the other hand, retiring with debt means you’ll have monthly payments that eat into your income. You may even need to work part-time or withdraw additional funds from your retirement account.

“To go into debt in retirement, you need income to pay for it,” says Martin. “That extra income can erode your Social Security benefits, whether through taxes or reduced benefits.”

4. You plan for anticipated retirement costs

Senior couple with financial advisor
Sirtravelalot /

The amount your retirement will cost you will vary greatly depending on your retirement lifestyle.

“Find out how much it will cost you annually for food, lodging, transportation and entertainment,” says Martin. “Also be sure to price any retirement activities such as travel, golf or boating and factor in inflation.”

“Normally, inflation is not really a concern. However, when it gets out of control like it is today, everything can cost a lot more and that hurts retirees,” adds Martin. “Although we cannot predict periods of excessive inflation, it is important to consider minimum inflation each year.”

To track inflationary trends, Martin recommends visiting the US Bureau of Labor Statistics or looking at economic data and forecasting site Trading Economics.

5. You have financial skills

Woman with financial advisor
Odua Images /

If you have a budget and track how much you’re spending, saving and earning and are ready to look at your debt and come up with a plan to reduce that number, you’re already financially savvy to some degree, according to Rosen.

“Financial literacy is a key part of retirement planning, and the sooner you start to feel comfortable with your finances, the better prepared you’ll be for retirement,” says Rosen.

“By frequently checking and monitoring your progress with your budget, savings, retirement account, debt, and financial plan, you’ll notice if something is wrong,” he adds. Rosen suggests reassessing both short-term and long-term financial goals after major life changes, such as moving, having a child, or getting divorced.

Rosen says these frequent check-ins are important to keeping your retirement on track. They give you the opportunity to catch and correct current problems and ensure that your finances don’t go in the wrong direction.

Want to boost your financial literacy skills? Visit and FDIC’s Money Smart to learn about saving, earning, investing, budgeting, spending, borrowing and more.

And, of course, by signing up to the Money Talks News newsletter, you’ll get the latest retirement news and advice delivered to your inbox.

6. You have a sufficient emergency fund

Emergency fund
Ariya J /

Having a fully funded emergency account is another sign that you’re on the right path to retirement. This money is essential to enable you to weather any financial storm, such as job loss or medical crisis, without going into debt or dipping into your retirement accounts.

“Not only will you need an emergency fund, but also a cash fund where you will have access to your money,” says Rosen. “If you make it a habit of having access to cash that is available but not intended for everyday use, you will be better prepared to manage your financial situation in retirement.”

If you don’t have an emergency fund yet, check out: “9 Tips for Starting an Emergency Fund Today”.

7. You review retirement account statements

Man working on taxes
Syda Productions /

Never looking at your retirement account statements is a “recipe for disaster,” says Chris McMahon, president and CEO of Aquinas Wealth Advisors, a financial planning firm in Pittsburgh, Pennsylvania. Still, some people go years, even decades, without checking their retirement account statements, he told Money Talks News.

“Often these statements will provide additional guidance such as performance relative to the market or level of risk relative to most people your age,” he explains. “In short, these quarterly reminders can have a huge positive impact on where you might end up in retirement. In the quest for a safe and comfortable retirement, your plan statement is worth gold.

“If your account contains a lot more stocks than average, you may be taking on more risk than you think,” McMahon adds. “Be sure to check the performance breakdown of the individual holdings in your account shown on your statement. If one of your holdings is performing significantly worse than the others, this could be a red flag to consider replacing that holding.

8. You plan your future taxes

Woman doing taxes on laptop
Antonio Guillem /

To stay on track for your retirement, be sure to anticipate future tax increases.

“Federal income taxes are expected to rise at the end of 2026,” Martin says. “If you are in the 24% tax bracket today, you will be in the 28% tax bracket in 2026.”

Roth conversions can be a way to avoid future tax increases. By transferring money from a Traditional IRA to a Roth IRA, you will pay taxes on the money at today’s rates. Then the money in a Roth account grows tax-free and can be withdrawn tax-free in retirement.

“The more taxes you have to pay, the more aggressive retirees will have to be with withdrawals from retirement accounts,” Martin notes. “That, in turn, will cause more Social Security to be taxed, which will increase the likelihood of running out of money.”

9. Retirement worries don’t disturb your sleep.

Happy sleeping woman
Andrey_Popov /

If you’re confident enough in your retirement plans to fall asleep when your head hits the pillow, that’s a sign your retirement is probably on the right track, according to McMahon. Listening to your inner voice gives you insight into the steps you may still need to take to plan for retirement.

If you’re wondering if you’re okay, have enough money, or need to rely on your kids after you retire, it’s your inner self that’s pushing you to address the issue, McMahon says.

“Often people who realize they can fail just ignore the problem,” he adds. “They rationalize, hijack and divert conversations away from any real conversation about preparing for retirement.”

However, those on the right track tend to review and refine their plans regularly. They are happy to discuss the subject and are open to suggestions on methods to improve their chances of having a fulfilling retirement.

5 crucial points to remember after the court suspended student loan forgiveness Sat, 22 Oct 2022 13:31:52 +0000

On Friday, a federal appeals court temporarily halted Biden’s student loan forgiveness program, which would forgive up to $20,000 in student loan debt for tens of millions of borrowers.

The court action has already begun to sow confusion and concern. Here’s what student borrowers need to know.

Legal action to block Biden’s student loan forgiveness plan brief and temporary – for now

The 8th Circuit Court of Appeals has blocked implementation of Biden’s student loan forgiveness plan at the emergency request of a coalition of Republican-led states. Those states had sued the Biden administration in Missouri federal district court, arguing that Biden’s plan would result in lost revenue and other financial harm to the states and their state-affiliated FFELP lenders and providers, such as than MOHELA. The federal district court judge dismissed the lawsuit, but the states then appealed to the 8th Circuit.

The 8th Circuit has granted the states’ request for an emergency temporary “stay” while the parties prepare their legal arguments regarding a potentially more serious stay, called an injunction. An injunction can block a contested rule, law, or program for the duration of a legal battle, which can last months or even years. An injunction poses a potential danger to Biden’s student loan forgiveness program, but the court won’t rule on that for at least several days.

In the meantime, this current program freeze is a temporary administrative break.

“The [8th Circuit’s] The order does not reverse the dismissal of the case by the trial court, nor does it suggest that the case has merit,” the White House said in a statement late Friday. “It just prevents [student] debt to be discharged until the court renders a decision” on the preliminary injunction.

Stay only affects Biden’s one-time student loan forgiveness initiative, not PSLF or other programs

Importantly, the 8th Circuit ruling only impacts Biden’s one-time student loan forgiveness plan, which can provide $10,000 or up to $20,000 in student loan forgiveness to eligible borrowers.

The temporary stay has no impact on other federal student loan relief programs, including the Public Service Loan Relief (PSLF) or the limited PSLF Waiver initiative, which is scheduled to end Oct. 31.

Borrowers can still submit applications for student loan forgiveness

Biden’s student loan forgiveness program application, which went live last week, is still active and available, and the Department of Education can still review applications. It simply cannot process applications or implement student loan forgiveness while the emergency stay remains in effect.

“Following a court order, we are temporarily prevented from processing debt discharges,” read a post on the student loan forgiveness application website. “We encourage you to apply if you are eligible. We will continue to review applications. We will promptly process dumps when we are able to do so.

Senior Education Department and White House officials are urging borrowers to keep applying.

The “temporary decision does not stop the Biden administration’s efforts to provide borrowers with the opportunity to apply for debt relief,” Education Secretary Miguel Cardona said in a statement. Tweeter late Friday. “Amid Republican efforts to block our debt relief program, we are moving full speed ahead to be ready to provide relief to borrowers who need help.”

Borrowers who have already submitted student loan forgiveness requests do not need to take any further action

The Biden administration reported yesterday that 22 million borrowers have already applied for student loan forgiveness. This represents more than half of the estimated eligible borrowers.

Secretary Cardona confirmed on Friday that those borrowers who have already applied need not worry. The action of the court “does not [not] prevent us from reviewing the millions of applications we have received,” he said.

“You won’t need to reapply” if you’ve already applied for student loan forgiveness, according to the Department of Education’s online application portal.

The exclusion of FFELP loans held by companies could be at the heart of the Court’s next decision on the student loan forgiveness plan

Three weeks ago, the Biden administration updated eligibility guidelines for the student loan cancellation plan to exclude FFELP loans held by businesses from relief.

Originally, the Ministry of Education informed borrowers that these FFELP loans could be consolidated into a direct consolidation loan to receive loan forgiveness. But on September 29, the administration backtracked, saying that FFELP loans held by companies and direct consolidation loans containing FFELP loans held by companies based on an application submitted on or after September 29, 2022 would no longer be eligible. Other FFELP loans, including FFELP loans held by the Ministry of Education, may still be eligible.

This legal challenge was a key factor in the Department of Education’s decision to reverse the FFELP loans. A central argument of Republican-led states is that the Biden student loan cancellation plan starves those states, and their state-affiliated FFELP lenders, of revenue. But if FFELP loans held by individuals are not eligible for student loan forgiveness, it can undermine those legal arguments.

Ultimately, these are questions the 8th Circuit will consider in the coming days as it considers an injunction. And this decision will have wider implications for millions of student borrowers.

Further Reading on Student Loan Forgiveness

Court Temporarily Blocks Biden’s Student Loan Forgiveness Plan — Here’s What It Means For Borrowers

In Reversal, Biden Administration Announces New Student Loan Forgiveness Eligibility Limits

Apply for student loan forgiveness? Don’t Make These 3 Mistakes

Biden launches student loan forgiveness app, says 8 million have already applied

Buy SoFi before earnings: A surprise is expected (NASDAQ:SOFI) Wed, 19 Oct 2022 17:38:00 +0000

Rich Fury


It seems that macroeconomic conditions are weakening every day, and in the wake of such sentiment, SoFi Technologies, Inc. (NASDAQ: SOFI) (“Sofi”) has suffered a lot in recent months. The continued decline in stock prices happens even after surprise profit in the last quarter, Q2 2022, as investors continue to believe that Sofi’s risks from macro conditions far outweigh future potential.

I think otherwise. In fact, I think Sofi’s Q3 2022 earnings report will be another surprise. Demand for personal loans has been higher than ever, due to the demand for readily available loans for years, especially during tough economic times when some consumers need additional loans. Additionally, sharp increases in interest rates are pushing people with variable loans such as credit cards to consolidate with personal loans. Therefore, given that Sofi is a financial services platform offering both consumer financial services and loans, I believe that Sofi is in a position to benefit from this underlying trend, which prompted my rating of purchase.

Personal loan application

With the rise of fintech companies such as Sofi, the demand for personal loans has been increasing since 2012. Companies like Sofi have made it easier and more accessible for normal consumers to take out unsecured and secured personal loans from the comfort of their hearth within minutes often. Thus, as the graph below shows, the demand for personal loans has benefited and continues to benefit from a strong secular trend. In 2022, total personal loan debt increased 24% year over year to $178 billion from $144 billion.

Historical trend of personal loans

loan tree


Additionally, looking at data from the Federal Reserve of New York, the “other” category consisting of personal loans grew 10% year-over-year, which was the fastest of any other. forms of loans.

Despite the weakening economic conditions and outlook, Americans continue to take out more personal loans. One of the strong reasons for this phenomenon is that personal loan rates are fixed. So if consumers with credit card debt, often at variable rates, are looking to consolidate in times of sharply rising rates, personal loans will be one of the accessible forms of new lending. Additionally, for various other reasons of taking out a loan, be it for financial relief in times of inflation or for home improvement, a personal loan has been popular due to its easily accessible nature through companies like Sofi. Thus, the favorable trend in the personal loan market should continue.

How Sofi Benefits

The development and growth of the personal loan market are clearly favorable to Sofi. Sofi is a financial platform that attracts millions of consumers through its loss leaders such as high-yield checking and savings accounts, credit cards, brokerage services and many other financial services. Then, with an established customer base, the company offers loan products when customers seek one. Since Sofi will already have many data points on its customers through previous relationships, the company will be able to provide loans faster and at more competitive rates, giving consumers more reason to stay on the market. Sofi platform. For consumers, they don’t have to worry about using multiple financial services companies for their daily needs. So, given this platform advantage, Sofi will be one of the biggest beneficiaries of the high demand for personal loans.

Looking at Sofi’s Q2 2022 earnings report, I think it makes sense to say that Sofi could beat expectations in the upcoming earnings report on top of a strong personal loan trend. First, as the charts below show, Sofi’s membership and product growth has continued to increase at a rapid pace, increasing potential future customers and making services more accessible, personalized and widely available through product expansion.

Sofi Member Growth Chart



Sofi Product Growth Chart


Finally, even in the prior quarter, Sofi outperformed on top of strong personal loan demand with a 91% year-over-year increase in loans. I think this data proves the strength of Sofi in the market. Sofi was able to significantly outpace the annual personal loan market growth of 24% year-over-year. Therefore, given the strengthening of Sofi’s platform and the continued growth of the personal loan market, I believe that Sofi will be able to surprise investors in the upcoming November 1 earnings report.


Some investors may point out that personal loans have higher average default rates than other forms of loans, making an investment in Sofi unsafe in tough economic times. While this argument may be true in the future, the data suggests these fears are overblown. According to Experian, crime rates are still at historically low levels. As shown in the image below, given the continued low delinquency rate, I think the concern that the potential delinquency rate is overstated.

Historical failure rate



Also, given Sofi’s major customers, average market default rates may not affect Sofi as much as investors fear. The average income of Sofi loan product customers is more than $100,000 a year, about $30,000 more than the actual median household income, according to St. Louis FED. So, given the relatively higher incomes of Sofi’s customers and still low delinquency rates, fears of a mass default on Sofi’s personal loan products may be overblown.


Many investors view Sofi as extremely risky, especially in the current macroeconomic environment, as the company is not yet profitable. However, given the strength of the balance sheet, rapidly improving finances and positive net cash operation expected in 2023.

First, Sofi has an extremely strong balance sheet. The company has approximately $700 million in cash, or approximately 16% of total market capitalization in cash, with a total liabilities to assets ratio of approximately 56.5%. In addition, the company’s losses have improved significantly. Sofi posted a loss of 26 cents per share in 2021Q2, which improved to $12 per share in 2022Q2. These levels in the coming months in 2023 are expected to turn positive. Of Sofi’s three main businesses, lending, technology and financial services, only financial services are unprofitable, which has been the source of the company’s losses, citing marketing and products. call for growth. Through optimization and growth, the company expects this segment of the business to also turn positive by the end of 2023. Therefore, given the strong financial health and expected improvements in company’s operations, I don’t think the company’s current losses will be an impediment to Sofi’s future growth and vision.


I expect Sofi to surprise in the upcoming Q3 2022 results on November 1st. Personal lending, which has been strong in recent years, continues to be strong as consumers seek debt consolidation and easily accessible debt, and because Sofi has proven to be able to capitalize on this opportunity by increasing its personal borrowings faster than market growth, I think Sofi will surprise investors in the upcoming earnings report. Therefore, I think Sofi is a buy.

7 personal lenders that offer discounts Mon, 17 Oct 2022 19:36:30 +0000

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

If you need a personal loan but want to keep your interest rate low, look for lenders who offer rate reductions. (Shutterstock)

If you need to borrow money, personal loans may be one of the cheapest ways to do this. Many personal loans are unsecured, meaning you don’t need to secure the loan with collateral like you would with a mortgage. Some lenders offer discounts to make personal loans even more attractive to borrowers. Here’s how personal loan discounts work and seven lenders who offer discounts when you borrow money from them.

Credible, it’s easy to view your prequalified personal loan rates from lenders who offer discounts – all in one place.

What is a Personal Loan Forgiveness?

Some lenders lower their interest rates for certain reasons, such as signing up for automatic payments or having an established relationship with the lender (this is more common if you are applying for a loan from your bank).

These discounts reduce your interest rate by a small percentage, often 0.25%. Autopay rebates require you to take monthly payments from your bank account, and relationship rebates are based on your past transactions with a lender. Belonging to a certain organization, such as being a member of AARP, can also lead to a forgiveness on a personal loan.

How Much Are Discounted Personal Loans Worth?

The value of a personal loan discount varies depending on the lender and the amount of the loan. For example, suppose a lender offers an automatic payment discount of 0.25% off their regular interest rate of 9%, which gives you an annual percentage rate (APR) of 8.75%. On a $15,000 personal loan with a five-year repayment term, this discount would save you $109 in interest over the life of the loan.

Visit Credible for compare personal loan rates from various lenders and see how much you could save on a personal loan.

7 personal lenders that offer discounts

If you’re looking for a personal loan and want to save on interest, these seven Credible partner lenders offer personal loan discounts:


  • Loan amounts: $2,000 to $35,000
  • Minimum credit rating: 550
  • Discounts: Automatic payment
  • Good for: Quick approval


  • Loan amounts: $2,000 to $36,500
  • Minimum credit rating: 580
  • Discounts: Automatic payment
  • Good for: Lower credit ratings


  • Loan amounts: $5,000 to $100,000
  • Minimum credit rating: 660
  • Discounts: Automatic payment
  • Good for: Borrow a large sum

Marcus of Goldman Sachs

  • Loan amounts: $3,500 to $40,000
  • Minimum credit rating: 660
  • Discounts: Automatic payment
  • Good for: National Availability


  • Loan amounts: $5,000 to $100,000
  • Minimum credit rating: don’t divulge
  • Discounts: Automatic payment
  • Good for: Flexible repayment terms

Universal Credit

  • Loan amounts: $1,000 to $50,000
  • Minimum credit score: 560
  • Discounts: Automatic payment
  • Good for: Borrow small amounts


  • Loan amounts: $1,000 to $50,000
  • Minimum credit score: 560
  • Discounts: Automatic payment
  • Good for: Debt Consolidation

Advantages and disadvantages of personal loans

Before taking out a personal loan, it is important to carefully assess the advantages and disadvantages.

Benefits of a personal loan

  • Fixed monthly payments — You’ll repay a personal loan in fixed monthly installments, which can make it easier to budget and stay on track. You will also have a final payment day (commonly referred to as a “due date”) for loan repayment.
  • Low interest rates – Personal loans generally have lower interest rates than credit cards. The better your credit score, the lower the interest rate you can qualify for.
  • High borrowing amounts — Personal loan amounts can be higher than credit card loan amounts, sometimes up to $50,000 at $100,000. But you’ll likely need good to excellent credit to qualify for a large amount.
  • Can help you build your credit — Your payment history is the most important factor that makes up your credit score. If you make all of your personal loan payments on time, every time, it can boost your score.

Disadvantages of a personal loan

  • Less flexibility — Fixed monthly payments mean less flexibility. You will have a fixed payment amount each month, and you cannot choose to make a minimum payment like you would with a credit card.
  • Costs – Personal lenders may charge fees, such as origination fees for processing the loan or late payment fees.
  • Get into more debt — If your budget is already stretched, taking on an extra debt payment in the form of a personal loan can make it harder to keep up with your payments.
  • Can hurt your credit — If you don’t make a full payment each month or make late payments, it can hurt your credit.

How to apply for a personal loan

If you decide that a personal loan is the right choice for you, here are the steps you’ll typically take to apply for one:

  1. Check your credit. All lenders have different credit score requirements, so it may be worth checking your credit score before shopping for the good personal lender. This way, you can get an idea of ​​which lenders you will qualify for. Generally, the better your credit score that is, the more you will qualify for lower interest rates, larger loan amounts, and more favorable loan terms. Check your credit file for any errors that may be hurt your credit score, and dispute them with the credit bureau. If you need help qualifying for a personal loan, you can always apply with a co-signer.
  2. Compare the prices. If possible, get prequalified with each lender you’re considering to see what types of loan terms they’re likely to offer you so you can get an idea of ​​who will give you the best deal. Compare rates, terms, loan amounts and fees charged by lenders to choose the best one for your situation.
  3. Choose a lender and apply. Once you have chosen a lender, you will complete a full application. You will need to provide personal information and supporting documents regarding your identity and income, such as bank statements, pay stubs, and W-2 forms.
  4. Receive loan funds. If you are approved, you will sign a loan agreement and the lender will fund your loan, usually by direct deposit to your bank account. This can take anywhere from one to seven business days, although exact funding times vary from lender to lender.

If you’re ready to apply for a personal loan, Credible makes it quick and easy compare personal loan rates to find the one that suits your needs.

Reach Financial Personal Loans: 2022 Review, Rates Fri, 14 Oct 2022 20:45:24 +0000

Insider’s experts choose the best products and services to help you make informed decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own. Terms apply to offers listed on this page.

Reach Financial Personal Loans

Reach Financial Personal Loan


Setup fee ranges from 0% to 5%, $15 late fee

Reach Financial Reach Financial Personal loan

Reach Financial Personal Loan


Setup fee ranges from 0% to 5%, $15 late fee

On the Reach Financial website


Setup fee ranges from 0% to 5%, $15 late fee

Chevron icon It indicates an expandable section or menu, or sometimes previous/next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous/next navigation options.

Advantages and Disadvantages of Reach Financial Personal Loans

Compare personal loan rates

Reach Financial is best for borrowers with great credit who want to consolidate their debt at a low rate. Reach Financial offers attractive minimum rates that may be difficult to find elsewhere. Also, many lenders don’t deal specifically with debt consolidation, so Reach Financial may be able to better help you with the process.

Borrowers who want to take out a loan for a different purpose won’t be able to use this lender, and residents of 10 states aren’t eligible either.

Reach Financial Personal Loan Comparison

How Reach Financial Compares

Chevron icon It indicates an expandable section or menu, or sometimes previous/next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous/next navigation options.

Editor’s Note


A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Regular APR

5.99% to 35.99%

Editor’s Note


A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Regular APR

7.99% – 24.99% APR

Editor’s Note


A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Regular APR

7.99% – 23.43% (with all discounts)

Reach Financial has no minimum credit score requirement. Payoff has a lower credit score requirement than SoFi, but if your credit isn’t in top shape, Payoff may charge you a higher maximum APR. If you have excellent credit, you may be able to get the lowest rate with Reach Financial.

Reach Financial and Payoff are for borrowers looking to consolidate their debt. Only SoFi allows borrowers to obtain a loan for other purposes.

See our Personal Loan Scoring Methodology »

Frequently Asked Questions

Reach Financial is a Better Business Bureau accredited company with an A+ rating from the organization. The BBB is a non-profit organization focused on consumer protection and trust. It rates companies by looking at their response to customer complaints, honesty in advertising, and truthfulness in business practices.

Reach Financial has not been involved in any recent controversies.

There is no minimum credit score required for a personal loan from Reach Financial. Instead, the company considers your overall financial situation when making final loan decisions.