News 

One Couple’s Brutal, Infuriating Story of Debt in America

“They cashed out a $70,000 401(k) without anticipating the tax penalties of about $20,000, some of which went on, yep, a credit card” writes Newser Editors for newser.com. Five years ago, they borrowed $40,000 from Kate’s parents and paid off all their credit card debt—then built it right back up.They’re broke, or, more accurately, so deeply in debt it’s staggering.The two, 48 and 46, respectively, have three kids, work in insurance, make upwards of $160,000 combined, and “have an insurmountable amount of debt.”.  Source: newser.com Share This:

Read More
News 

Follow these credit-card hacks to rack up major savings while holiday shopping

“All told, that financial hit could easily outweigh the benefits derived through credit card rewards” writes Jacob Passy for marketwatch.com. Don’t miss: Hackers will impersonate your favorite brands this holiday season — tips for safe shopping When shopping online, pair credit-card rewards with online rebates through companies like Ebates to get extra savings, Karimzad said.Similarly, consumers can earn a 70,000-mile sign-up bonus if they spend $5,000 in the first 90 days after opening the Barclaycard Arrival Plus World Elite Mastercard MA, -1.17% Some credit cards’ rewards programs are structured so…

Read More
Markets News 

Sears investors claim hedge fund Cyrus improperly influencing credit market: letter

“The proceeds from the sale of the notes will help fund an account for Sears designated for expenses that could eventually help Sears stay in business” writes Midwest Communications Inc for 95kqds.com. By selling the insurance, Cyrus had been wagering that Sears would avoid filing for bankruptcy.Cyrus, which has more than $4 billion in assets under management, sold a form of credit insurance to investors who believed Sears would file for bankruptcy.The investors, whose names were redacted in the letter, bet correctly that Sears would file for bankruptcy. Source: 95kqds.com Share…

Read More
News 

10 ways to save a lot of money — even if you’re not a high earner

“Engaging in tax planning throughout the year will help you budget for any tax planning measures that are necessary, and strategically time purchases and deductions” writes Michael Dinich for marketwatch.com. The IRS offers several tax incentives for individuals and families with modest income, such as the retirement savers credit, the premium tax credit, the child tax credit and the earned-income tax credit.Even if you are in one of the lowest income tax brackets, income taxes can consume 10%, 15% or even more of your income.One of the biggest mistakes people…

Read More
News 

U.S. banking sector reports $62 billion profit in third quarter: FDIC

“The number of problem banks also fell from 81 in the second quarter to 71 in the third quarter, the lowest number since the third quarter of 2007” reports businessinsider.com. Only 3.5 percent of banks reported net losses, down from 4 percent a year ago.The regulator said in a statement that profits were boosted by a lower effective tax rate and higher operating revenues. “The competition to attract loan customers has been strong, and it will remain important for banks to maintain their underwriting discipline and credit standards.”. “Attention to…

Read More
Crypto News 

Dispatch plans to build a faster blockchain network with zero-cost transactions

“Early blockchain technologies were slow in part because they used decentralized technology to verify blockchain data, and the costs of that technology grow more expensive over time” writes Dean Takahashi for venturebeat.com. User information is encrypted and stored on the Dispatch Artifact Network (DAN), and Dispatch allows parties on the network to access the information without disclosing the personal data.We are leveraging blockchain to do this.” Businesses have made a lot of money from tracking and using personal information.Data-focused blockchain startup Dispatch has raised a new round of funding from China’s Fenbushi Digital…

Read More
News 

Plastiq Lands Funding For Tool Broadening SMBs’ Use Of Cards

“Plastiq allows businesses and consumers to pay Klarna with their credit cards, while Klarna will then pay their bills on the appropriate payment rail” reports pymnts.com. FinTech startup Plastiq has announced a $27 million venture capital funding round for its solution that lets businesses and consumers make payments with their payment cards, regardless of if cards are accepted.The tool also helps companies pay bills that typically aren’t paid via cards, such as rental payments.Plastiq said it plans to use the investment to introduce new services for business owners and entrepreneurs, as…

Read More
News 

FASB Proposes ASU on Financial Instruments Accounting Changes

“FASB finalized some earlier tweaks to the current expect credit losses, or CECL, standard last week (see FASB tweaks credit losses standard)” writes Michael Cohn for accountingtoday.com. The Financial Accounting Standards Board posted a proposed accounting standards update Monday that would make narrow improvements to its standards on credit losses, hedging, and recognition and measurement of financial instruments.The new proposal aims to make further changes in the three financial instruments standards, which FASB has tried to converge with the International Accounting Standards Board’s own International Financial Reporting Standards, although the…

Read More
News 

Contrary to popular belief, China’s dystopian ‘social credit’ system does not dictate every aspect of human life — at least not yet

“However, the social credit system does not itself produce scores, grades, or assessments of “good” or “bad” social credit” writes Jamie Horsley for businessinsider.com. It’s true that, building on earlier initiatives, China’s State Council published a road map in 2014 to establish a far-reaching “social credit” system by 2020.The PBOC’s Credit Reference Center, like licensed private credit reporting agencies, does offer financial credit scores (xinyong pingfen).China’s party-state is collecting a vast amount of information on its citizens, and its social credit system and other developments internally and overseas raise many serious concerns.China’s credit reporting system, whose financial reports comprise…

Read More
Markets News 

Junk bonds — no longer 2018’s darling — flip to red as the corporate debt climate deteriorates

“Issuers of high-yield corporate bonds, or junk debt, are rated below investment-grade by credit ratings firms due to their weaker balance sheets” writes Sunny Oh for marketwatch.com. But only a month ago, high-yield debt investors were sitting on relatively fat returns.Analysts often link the ups and downs of energy prices closely to the fortunes of the high-yield debt market because energy-related issuers make up 15% of the index.Resilient to the Federal Reserve’s rate hikes and stock market turmoil, high-yield debt finally succumbed to slumping oil prices and mounting fears over…

Read More