Borrow money – R43DSFRS http://r43dsfrs.com/ Mon, 21 Nov 2022 13:41:31 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://r43dsfrs.com/wp-content/uploads/2021/07/icon-1.png Borrow money – R43DSFRS http://r43dsfrs.com/ 32 32 Democrats make a mistake on the debt ceiling https://r43dsfrs.com/democrats-make-a-mistake-on-the-debt-ceiling/ Mon, 21 Nov 2022 13:41:31 +0000 https://r43dsfrs.com/democrats-make-a-mistake-on-the-debt-ceiling/ Comment this story Comment Fresh off a surprisingly resilient midterm performance, Democrats appear to be messing things up from the start by making a major political miscalculation on how to handle the debt ceiling. Democratic leaders have signaled they have no plans to address the borrowing limit in the current lame session of Congress, when […]]]>

Comment

Fresh off a surprisingly resilient midterm performance, Democrats appear to be messing things up from the start by making a major political miscalculation on how to handle the debt ceiling.

Democratic leaders have signaled they have no plans to address the borrowing limit in the current lame session of Congress, when their House and Senate majorities would theoretically give them a chance to raise. or even eliminate the cap entirely without the help of Republican votes.

Democrats also appear to have convinced themselves that if the problem arose in early 2023, pushing the nation once again to the brink of default and economic crisis, Republicans would take responsibility.

“While there is a serious risk to the economy, the gun is in the hands of Republicans,” a Biden adviser told Politico last week. “And there is little doubt as to who will be blamed for it.”

Rarely have I seen more misguided thinking from Joe Biden’s White House.

If there is a debt crisis or, even worse, a default caused by going over the borrowing limit, the blame should indeed lie with the Republicans. But Democrats are kidding themselves if they think they won’t be held accountable for any economic fallout.

It’s not that Republicans actually oppose raising the limit, a superfluous and unnecessary law that only allows the Treasury to borrow money that Congress has already forced it to borrow. (1) But Republicans think they can withhold their votes in order to secure concessions on yet-to-be-revealed policy goals. And they are willing to risk creating havoc in financial markets and undermining confidence in American credit in the process. He’s the political equivalent of a bratty kid threatening to hold his breath until he turns blue.

The economic chaos that would likely result from a debt crisis should prompt Democrats to do whatever it takes to raise the limit now. Ideally, they would drop the ceiling entirely so that we can put an end to these confrontations which do not benefit anyone.

But that would likely involve using the budget reconciliation process in the Senate to avoid a Republican filibuster and would require the support of Sen. Joe Manchin of West Virginia. The White House may not have the appetite or the ability to enlist his support.

Manchin faces a potentially tough re-election battle in 2024, so he has good reason to prefer two-party solutions when available. But he’s making a mistake: He probably wouldn’t like any deal offered by Republicans. If Manchin can’t be conquered, the Democrats simply won’t have the votes.

Still, Biden and Senate Democratic leaders should try to get him on board. The problem is that the White House might sincerely believe that only Republicans will pay the price for stalling action on the debt ceiling. It is simply wrong.

Whatever voters may claim they think is responsible, if the economy crashes, Biden will take responsibility. We just had a perfect example of how it works. After Russia invaded Ukraine, polls indicated that voters would blame Russia, not Biden, if gasoline prices rose. Indeed, a solid majority of voters said they were willing to pay more at the pump if that was what it took to fend off Russian President Vladimir Putin.

Yet as soon as gas prices jumped, Biden’s disapproval numbers also rose.

If the United States defaulted on its debt, there is no doubt that a majority of voters, and perhaps an overwhelming majority, would tell pollsters that Republicans in Congress were primarily at fault. But if the economy is damaged, Biden’s position will suffer. It may not be fair, but that’s how things work.

And when November 2024 rolls around, voters won’t let the Democrats off the hook. This should be a strong incentive for Biden and congressional Democrats to end the debt limitation dramas now. (2) As a side benefit, they can know they are doing good public policy by doing so.

More from Bloomberg Opinion:

• Nancy Pelosi will be hard to follow: Matthew Yglesias

• Trump on the defensive for the first time in years: Ramesh Ponnuru

• Democrats in Array? Hard to deny after midterms: Francis Wilkinson

(1) In previous debt ceiling showdowns, some Republicans have claimed without evidence that the government could somehow prioritize the bills it was paying and ignore the rest. This time, at least so far, Republicans are explicitly saying they support raising the cap, but believe in using it to extract concessions from Democrats.

(2) Almost right now. I doubt a vote on the debt limit will make a difference in the Georgia Senate runoff, but the rules Democrats are expected to use would allow Republicans to propose amendments aimed at generating tough votes for Sen. Raphael Warnock , and so it makes sense to wait until after the December 6 vote. For everyone else, the marginal pain of a tough vote two years (or more) before they’re on the ballot again isn’t a big deal.

This column does not necessarily reflect the opinion of the Editorial Board or of Bloomberg LP and its owners.

Jonathan Bernstein is a Bloomberg Opinion columnist covering politics and politics. A former political science professor at the University of Texas at San Antonio and DePauw University, he wrote A Plain Blog About Politics.

More stories like this are available at bloomberg.com/opinion

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It’s the ‘perfect storm’: the average IMB lost $624 per loan in the third quarter https://r43dsfrs.com/its-the-perfect-storm-the-average-imb-lost-624-per-loan-in-the-third-quarter/ Fri, 18 Nov 2022 18:01:54 +0000 https://r43dsfrs.com/its-the-perfect-storm-the-average-imb-lost-624-per-loan-in-the-third-quarter/ The third quarter was historically the strongest of the year for Independent Mortgage Banks (IMBs) and mortgage subsidiaries of chartered banks. At least until 2022. On the origination side, these companies’ costs topped $11,000 per loan for the first time, despite a 19% year-over-year reduction in the total number of employees per company, which helped […]]]>

The third quarter was historically the strongest of the year for Independent Mortgage Banks (IMBs) and mortgage subsidiaries of chartered banks.

At least until 2022.

On the origination side, these companies’ costs topped $11,000 per loan for the first time, despite a 19% year-over-year reduction in the total number of employees per company, which helped drive third-quarter pre-tax net income to its lowest level since 2008.

Overall, these companies reported a net loss of $624 on every loan they issued from July through September, much worse than the $82 loss in Q2 and the $2,594 gain in Q3 2021, according to the Mortgage Bankers Association (MBA).

“The industry continues to battle a perfect storm of declining production volume and revenue and escalating production costs,” said Marina Walsh, vice president of industry analysis at business organization, in a statement.

“Companies are responding to difficult market conditions by reducing excess capacity, including staff. The number of production employees per company is down 7% from the previous quarter and 19% from a year ago. However, overall volume has fallen so rapidly that some companies are struggling to adjust staffing and other costs to match market conditions,” Walsh said.

Production is currently in freefall. On average, IMBs generated mount volume of $578 million from July to September, compared to $705 million in the prior quarter.

Per loan, production revenue decreased from $10,855 in the second quarter to $10,392 in the third quarter.

Meanwhile, total loan production expenses — commissions, compensation, occupancy, equipment, and other corporate expenses and allowances — peaked at $11,016 per loan in Q3, from $10,937 per loan in Q2.

The average first mortgage balance also fell to $335,940 in the third quarter, down from $337,130 in the previous quarter.

The share of purchases in total originations in dollar volume among IMBs and mortgage subsidiaries of chartered banks jumped to 86% from 81% in the prior quarter. The MBA estimates that purchase mortgages accounted for 81% of total industry lending in the third quarter.

service company

Businesses continue to benefit from their service businesses in an environment of low delinquency rates and low prepayments.

Third quarter management net finance income (without annualization) was a gain of $102 per loan in the third quarter, compared to $133 per loan in the second quarter.

Management operating income – which excludes amortization of MSR, gains or losses in the valuation of management rights net of hedging gains or losses and gains or losses on the bulk sale of MSR – was $95 per loan in the third quarter, compared to $97 per loan in the second quarter.

Selling MSR does not directly impact earnings as a revenue stream, but converting MSR to cash through sales agreements strengthens a lender’s cash flow and overall liquidity.

Including production and services, 46% of companies posted a net financial profit before tax in the third quarter, compared to 57% in the previous three months.

But, according to Walsh, “October’s report of slowing inflation and the subsequent drop in mortgage rates could rekindle buying demand and ultimately provide much-needed relief to the industry.”

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Hearing on no confidence motion: If I were finance minister, I wouldn’t borrow money to bankrupt banks – Ato Forson https://r43dsfrs.com/hearing-on-no-confidence-motion-if-i-were-finance-minister-i-wouldnt-borrow-money-to-bankrupt-banks-ato-forson/ Tue, 15 Nov 2022 17:38:30 +0000 https://r43dsfrs.com/hearing-on-no-confidence-motion-if-i-were-finance-minister-i-wouldnt-borrow-money-to-bankrupt-banks-ato-forson/ Finance ranking member Cassiel Ato Forson criticized the way the banking sector clean-up exercise was carried out and its subsequent ramifications on the economy. The 2019 financial year saw the Bank of Ghana revoke the licenses of some 347 microfinance companies and 23 savings and credit and finance companies. Finance Minister Ken Ofori-Atta said the […]]]>

Finance ranking member Cassiel Ato Forson criticized the way the banking sector clean-up exercise was carried out and its subsequent ramifications on the economy.

The 2019 financial year saw the Bank of Ghana revoke the licenses of some 347 microfinance companies and 23 savings and credit and finance companies.

Finance Minister Ken Ofori-Atta said the move was necessary because of the mismanagement of these financial institutions, which led to depositors’ funds being blocked with no hope that these funds would ever be accessed.

The development would have cost the state about ¢21 billion of taxpayers’ money.

This concern was, once again, highlighted during the work of the committee seized of the motion of censure against the Minister of Finance.

Speaking to the Parliamentary Committee, Cassiel Ato Forson said best practice was not being enforced by the government leading to what the minority see as financial recklessness.

The situation, he said later, led to an unforeseen debt which was then borne by the taxpayer.

Hearing on no confidence motion: If I were finance minister, I wouldn't borrow money to bankrupt banks - Ato Forson

“Ghana has decided to take a path where the burden of cleaning up the banking sector has been transferred to the taxpayer. I think that was wrong. I think Ghana could have decided to adopt other means to deal with problems in the banking sector,” he said in response to a question from North Tongu MP Samuel Okudzeto Ablakwa.

The deputy of Akatsi Sud, Bernard Ahiafor asked for more clarity on his point.

Dr. Forson countered Tuesday that; “If I’m the finance minister, there’s no way I’m borrowing money to bankrupt a bank.”

Hearing on no confidence motion: If I were finance minister, I wouldn't borrow money to bankrupt banks - Ato Forson

Defending his side’s position at the hearing, Dr Ato Forson said the process was not well managed by the government.

The fate of the Minister of Finance is currently in the hands of an 8-member committee which is investigating the allegations put forward by the minority as sufficient grounds for his dismissal.

The President of Parliament, Alban Bagbin, set up the commission on Thursday, November 10, which has seven days to submit its report.

It includes Samuel Okudzeto Ablakwa, Zanetor Agyeman-Rawlings, Bernard Ahiafor on the minority side and Patrick Yaw Boamah, Kwame Anyimadu-Antwi and Andrew Agyapa Mercer on the majority side.

DISCLAIMER: The views, comments, opinions, contributions and statements made by readers and contributors on this platform do not necessarily represent the views or policies of Multimedia Group Limited.

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Good news for buyers. Bank of Baroda Reduces Interest Rate on Home Loans and Offers No Processing Fees https://r43dsfrs.com/good-news-for-buyers-bank-of-baroda-reduces-interest-rate-on-home-loans-and-offers-no-processing-fees/ Sat, 12 Nov 2022 05:12:14 +0000 https://r43dsfrs.com/good-news-for-buyers-bank-of-baroda-reduces-interest-rate-on-home-loans-and-offers-no-processing-fees/ The main public sector bank, Bank of Baroda, has cut interest rates on home loans by 25 basis points (bps) to 8.25% per annum from November 14, 2022. The bank will offer this rate of interest for a limited period. In addition, there will be no prepayment or partial payment fees for customers. In a […]]]>

The main public sector bank, Bank of Baroda, has cut interest rates on home loans by 25 basis points (bps) to 8.25% per annum from November 14, 2022. The bank will offer this rate of interest for a limited period. In addition, there will be no prepayment or partial payment fees for customers.

In a statement, Bank of Baroda said it was one of the lowest and most competitive home loan interest rates in the industry. This special rate is available until December 31, 2022. In addition to the 25 basis point reduction on the interest rate, the Bank is also waiving the processing fee.

The new rate starting at 8.25% per annum is available to borrowers applying for new home loans as well as balance transfers. This special rate is linked to the borrower’s credit profile.

To read also: Take a solidarity real estate loan? Check its pros and cons first

Commenting on the offer, HT Solanki, Managing Director, Mortgages and Other Retail Assets, Bank of Baroda, said: “In a scenario where interest rates are on an upward trajectory, we are happy to lower our interest rates. Interest on Home Loans and to introduce a special, 8.25% limited term Home Loan Interest Rate offer, making real estate purchases much more affordable for homebuyers.

“We have seen robust growth in home loans this year, with strong demand in all cities and consumer confidence driving home sales. Such an attractive offer on home loans will give an extra boost as people take advantage of this offer to fulfill their aspiration of owning their own home,” Solanki added.

Also read: Expensive home loans? You can still borrow around 8% – Check the latest rates

Key Features of Bank of Baroda Home Loans

  • Interest rate from 8.25% per annum for a limited period
  • No processing fees
  • Takeover of home loans with minimal documentation
  • Flexible duration up to 360 months
  • No prepayment/partial payment fees
  • Home service in major centers
  • Get digital home loans with fast approval in just a few steps
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Good Samaritan pays off predatory loan debt after USA TODAY article https://r43dsfrs.com/good-samaritan-pays-off-predatory-loan-debt-after-usa-today-article/ Tue, 08 Nov 2022 10:03:05 +0000 https://r43dsfrs.com/good-samaritan-pays-off-predatory-loan-debt-after-usa-today-article/ James Hollis can say goodbye to a pair of predatory loans with triple-digit interest rates. Half a dozen Good Samaritans from across the country offered to pay off the debt after USA TODAY Nov. 3, wrote about Hollis, who lives on Social Security disability and $23 in monthly food stamps, and his $3,050 in car […]]]>

James Hollis can say goodbye to a pair of predatory loans with triple-digit interest rates.

Half a dozen Good Samaritans from across the country offered to pay off the debt after USA TODAY Nov. 3, wrote about Hollis, who lives on Social Security disability and $23 in monthly food stamps, and his $3,050 in car title loans he got to fix a faulty transmission.

Hollis said Monday he was blown away by the generous offers, and Lorne Lavine, an Encino, Calif. dentist who owns a dental technology company, covered the tab.

“I feel great relief,” Hollis said. “I didn’t know how I was going to get there. I was attached.”

James Hollis who was subject to predatory loans at his home in Tucson, AZ on Monday, October 24, 2022.
Cassidy Araiza for USA TODAY

Hollis had started parking his 2006 Ford Crown Victoria, a converted ex-police cruiser, on its side in his carport in Tucson, Ariz., because he feared it would be picked up after falling behind in his payments in July.

Lavine, who said he provided free dental care abroad on humanitarian trips, said he wanted to help Hollis and was stunned by interest rates of nearly 155% and 202% on loans from car titles.

Interest on those loans was $10,741, or a total bill of nearly $14,000 if Hollis had paid it back over several years, records show.

“I felt awful,” Lavine told USA TODAY. “The people who need these loans the most are the hardest to repay, and these rates are crazy. can they get their heads above water when they have 200% interest on the loans?

USA TODAY wrote about Hollis as it examines the high-interest loans that critics and supporters say are becoming common across the country. Driving the trend is the staggering level of inflation gripping low-income earners who need help paying for their purchases in instalments.

Posted

Updated

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Personal loan interest rates at near-record spread with credit cards, increasing opportunities for savings https://r43dsfrs.com/personal-loan-interest-rates-at-near-record-spread-with-credit-cards-increasing-opportunities-for-savings/ Wed, 02 Nov 2022 21:40:56 +0000 https://r43dsfrs.com/personal-loan-interest-rates-at-near-record-spread-with-credit-cards-increasing-opportunities-for-savings/ article The interest rate on credit cards is much higher than personal loans, according to the Federal Reserve Bank of St. Louis. (Stock) Like the Federal Reserve increases interest rates To reduce inflation, the impact of rate hikes may vary across different forms of debt. This disparity has resulted in a near-record gap between interest […]]]>

The interest rate on credit cards is much higher than personal loans, according to the Federal Reserve Bank of St. Louis. (Stock)

Like the Federal Reserve increases interest rates To reduce inflation, the impact of rate hikes may vary across different forms of debt. This disparity has resulted in a near-record gap between interest rates on personal loans and credit cards, according to the Federal Reserve Bank of St. Louis.

The average interest rate on credit cards was 16.27% in August, while the average interest rate on personal loans was 10.16%, according to the latest data.

This is one of the largest spreads between commercial bank interest rates on credit card plans and 24-month personal loans in the St. Louis Fed’s recorded history.

The news comes as Americans are holding large amounts of credit card debt. Credit card balances rose by $46 billion in the second quarter of 2022, marking the largest quarterly increase in more than two decades, according to the Federal Reserve Bank of New York.

Additionally, half of Americans have fallen behind on their credit card debt amid high inflation, according to a survey.

If you have high-interest credit card debt, you can consider paying it off with a personal loan at a lower interest rate, which will save you money each month. You can visit Credible to compare different personal lenders and rates without affecting your credit score.

PERSONAL LOAN INTEREST RATES CONTINUE DROP FOR 5-YEAR FIXED-RATE LOANS

Credit card interest rates rise to record high

The average credit card interest rate in August, at 16.27%, is the highest in the history of the St. Louis Fed report, which dates back to November 1994.

This is notable, in part, because having a higher interest rate on outstanding credit card balances can significantly inflate your total debt.

Total US household debt has also increased of late, rising by $312 billion to $16.15 trillion in the second quarter of 2022, according to the New York Fed report. Total household debt includes items such as credit cards, mortgages and student loans.

“The second quarter of 2022 showed large increases in mortgage, auto loan and credit card balances, in part due to rising prices,” said Joelle Scally, administrator of the Center for Microeconomic Data at the New York Fed.

If you’re struggling with unpaid debt, you can consolidate it with a personal loan at a lower interest rate. To find out if a debt consolidation loan is right for you, you can talk to a personal loan expert at Credible. and get all your questions answered.

MANY STUDENTS WITH CREDIT CARDS HAVE DEBTS, SURVEY SAYS

The Fed may continue to raise interest rates in 2023 to reduce inflation

Inflation rose by 8.2% year over year in September, according to the Bureau of Labor Statistics (BLS) — a far cry from the Fed’s 2% inflation target.

To slow down inflation, the Fed may continue to raise rates in 2022 and 2023. This movement may affect the interest rates of several financial products. For example, the average interest rate on a 24-month personal loan rose slightly to 10.16% in August from 8.73% in May.

If you want to take advantage of current interest rates before they rise, you might consider using a personal loan to consolidate your debt at a lower rate. Visit the Credible Marketplace to compare personal lenders without affecting your credit score.

AVERAGE MILLENNIAL OWES MORE THAN $100,000 IN NON-MORTGAGE DEBT: SURVEY

Do you have a financial question, but you don’t know who to contact? Email the Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.

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Bank loans up 13.4% in September, money supply at P15.4T – Manila Bulletin https://r43dsfrs.com/bank-loans-up-13-4-in-september-money-supply-at-p15-4t-manila-bulletin/ Mon, 31 Oct 2022 06:22:00 +0000 https://r43dsfrs.com/bank-loans-up-13-4-in-september-money-supply-at-p15-4t-manila-bulletin/ The total outstanding loans of major banks rose 13.4% year-on-year in September, higher than 12.2% in August, supported by sufficient liquidity to encourage credit growth. The Bangko Sentral ng Pilipinas (BSP) also released the latest domestic liquidity or M3 of 15.4 trillion pesos on Monday, October 31, up 5% year-on-year. However, this was a slower […]]]>

The total outstanding loans of major banks rose 13.4% year-on-year in September, higher than 12.2% in August, supported by sufficient liquidity to encourage credit growth.

The Bangko Sentral ng Pilipinas (BSP) also released the latest domestic liquidity or M3 of 15.4 trillion pesos on Monday, October 31, up 5% year-on-year. However, this was a slower pace of growth compared to the 6.7% growth in M3 in September.

BSP Governor Felipe M. Medalla said he “will ensure that domestic liquidity conditions remain consistent with BSP’s price and financial stability objectives.” The medium-term inflation outlook remains high and will likely exceed the 2-4% target until 2023. For this year, the BSP’s average inflation forecast is 5.6%.

BSP Governor Felipe M. Medalla

Regarding bank lending, the Medalla said in a separate statement that “the continued expansion of lending activity and ample liquidity will continue to support the recovery in economic activity and domestic demand.” .

Based on preliminary data, on a seasonally adjusted monthly basis, outstanding universal and commercial bank loans, net of repo loans, or RRPs, increased by 1.7%. M3 on a seasonally adjusted monthly basis has meanwhile decreased by 0.2%.

In September, outstanding loans from major banks, net of RRPs, increased by 13% year-on-year to P10.169 billion from 12.1% in August. Gross of RRPs, outstanding loans reached 10,768 billion pesos.

Outstanding loans for production activities increased by 12.3% year-on-year to P9.203 billion. The main sectors that have driven the growth of productivity loans are real estate activities, manufacturing, the information and communications sector, and wholesale and retail trade, repair of motor vehicles and motorcycles.

Consumer loans in September also rose 18.3% year-on-year to 965.994 billion pesos, driven by increases in credit card loans, auto loans and general purpose consumer loans based on salaries.

Medalla said that while continuing to monitor and manage high inflation, the BSP will ensure that domestic liquidity conditions remain consistent with their price and financial stability objectives.

In September, money supply-related domestic claims rose 10.8 percent year-on-year, slower than August’s 11.4 percent.

Medalla said claims on the private sector rose 10.1% in September from 8.9% in August with the sustained expansion of bank lending to private non-financial corporations and households.

“At the same time, net claims on central government increased by 15.3% in September from 21.2% in August due to sustained borrowing by the national government,” he noted.

Also part of the M3 data, the BSP reported that net foreign assets (NFA) fell 1.7% in September from 0.8% in August.

Banks’ NFA also declined over the period due to higher bills payable, while BSP’s position in NFA was “broadly stable”, Medalla said.

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Should you use Buy Now, Pay Later for 2022 holiday shopping? https://r43dsfrs.com/should-you-use-buy-now-pay-later-for-2022-holiday-shopping/ Sun, 23 Oct 2022 14:30:49 +0000 https://r43dsfrs.com/should-you-use-buy-now-pay-later-for-2022-holiday-shopping/ Image source: Getty Images Crushing inflation is going to make the holiday season pretty expensive – like it wasn’t before. Shoppers who aren’t able to pay for all of their purchases right away might consider using a credit card, but there’s another payment option that’s been gaining traction in recent years. Buy Now, Pay Later […]]]>

Image source: Getty Images

Crushing inflation is going to make the holiday season pretty expensive – like it wasn’t before. Shoppers who aren’t able to pay for all of their purchases right away might consider using a credit card, but there’s another payment option that’s been gaining traction in recent years.

Buy Now, Pay Later (BNPL) services allow you to purchase your items immediately and pay for them over time, often without interest. But it’s not a good choice for everyone. Here’s what you need to know about BNPL.

Check Out: This Credit Card Offers a Rare $300 Welcome Bonus

More: These introductory 0% APR credit cards made our top list

How does Buy Now, Pay Later work?

Buy Now, Pay Later services, including Affirm, Afterpay and Klarna, allow you to shop at participating retailers with just a small upfront payment. This is often 25% of the purchase price.

Then you pay off the rest over time in a series of interest-free installments. You can have the money automatically deducted from your bank account or debited from a credit card.

Advantages of buy now, pay later

Buy Now, Pay Later offers the following benefits:

  • No waiting for your items: Unlike layaway, you don’t have to wait until you’ve paid for the items in full before you can take them home.
  • Flexible credit check: Most BNPL services use a soft credit check, which does not hurt your credit score.
  • No interest if you pay on time: Unlike a credit card, BNPL services allow you to repay what you owe over time without interest.
  • Quick approval: You can often sign up for BNPL when checking out online from a store and complete the transaction the same day.

Disadvantages of buying now, paying later

The Buy Now, Pay Later services also have their drawbacks, including:

  • Additional charges for late payment: Those who are unable to track their BNPL payments could accrue additional charges.
  • No Reward Earnings: Unlike using a rewards credit card, BNPL does not allow you to earn rewards that you can use for future purchases.
  • Increased temptation to spend more: Some people might spend more using BNPL than they would if they paid full price for the items. This could lead to debt if you’re not careful.

Alternatives to buy now, pay later

If you think BNPL’s services aren’t the right choice for you this holiday season, try one of these options instead.

Waiting to make a purchase

Start saving for your holiday shopping now and pay for your items in full upfront so you don’t have to borrow money or worry about interest charges. However, this may not be possible if you are hoping to buy a popular item that is likely to sell out quickly.

Set apart

Layaway also lets you pay for an item over time, but unlike BNPL, you can’t take your items home until you’ve paid for them in full. Many department stores and some online retailers offer layaways, but it’s important to review the terms first. Be sure to find out if there are any delays or associated costs before signing up.

Rewards credit card

Using a rewards credit card can help you earn points that you can use for other vacation purchases. You will also have some time between when you make your purchase and when you have to pay for it. But you should never charge your credit card for items that you’re not sure you can pay off in full at the end of the month. Carrying a balance on a credit card is expensive, and the interest you’ll pay far outweighs any benefit you’ll get from the rewards.

How to Get Started with Buy Now, Pay Later

If you want to use a buy now, pay later service, you should first check with the retailer you’re buying from to see if that’s an option. Many companies that offer BNPL now advertise it as a payment option, but for others you may need to add the item to your cart and proceed as you go to checkout to see if the company is working with a BNPL provider.

Next, review the Terms of Service. Pay attention to how much you need to pay up front, your installments, and how often you need to make payments. You should also review the fees the company may charge you if you are unable to keep up with your payments.

Finally, keep track of how much you spend to avoid going overboard. BNPL purchases can seem pretty small when you’re only paying 25% down payment, and if you’re shopping on multiple sites, you can rack up quite a large bill before you know it.

If you are worried about accumulating debt, BNPL may not be the right choice for you. Try one of the other suggestions listed above and start planning your holiday shopping list well in advance so you know what you need and how much you can afford.

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Indian stocks not yet strained https://r43dsfrs.com/indian-stocks-not-yet-strained/ Fri, 21 Oct 2022 05:53:58 +0000 https://r43dsfrs.com/indian-stocks-not-yet-strained/ Comment this story Comment Indian stocks generally command a premium. Even now, as investors nervously cut their estimates for corporate earnings in emerging markets, they continue to believe companies in the South Asian nation will post reasonably healthy earnings growth. After the recent downgrades, the stocks that make up the country’s benchmark Nifty Index are […]]]>

Comment

Indian stocks generally command a premium. Even now, as investors nervously cut their estimates for corporate earnings in emerging markets, they continue to believe companies in the South Asian nation will post reasonably healthy earnings growth.

After the recent downgrades, the stocks that make up the country’s benchmark Nifty Index are expected to generate returns around 15% higher over the next 12 months than they did at the start of 2020. That’s when expectations for emerging markets as a whole have been reduced to below pre-pandemic levels. Is this expected outperformance worth the extra price?

India’s valuation gap to other emerging markets is a “breathtaking” 3 standard deviations above the historical average, says Aditya Suresh, head of India research at Macquarie Capital. It’s not that global investors are leaning their portfolios toward China’s southern neighbor because they’re worried about the mainland’s slowing economy and growing detachment from the West. Although selling pressure has eased since July, foreign fund managers have sold more than $23 billion worth of Indian stocks so far this year.

Domestic purchases are fueling equities. Where does the funding come from? If you look at the overall picture of the banking sector, the excess liquidity that the central bank created during the pandemic years has all but disappeared. The Reserve Bank of India has raised its key rate by 1.9 percentage points since May. Yet the local stock market is still not exposed to the full force of currency restrictions.

To understand why, start with what brokerage firm HDFC Securities calls the “shifting contours of monetary transmission” in India. As of March 2020, less than 10% of rupee variable rate loans were priced against an external benchmark such as the RBI repurchase rate. By June of this year, that figure had risen to 47%. Taking advantage of rising interest rates, lenders frequently reset loan prices.

However, when it comes to paying deposits, they still hold back. Domestic equity funds have seen 19 consecutive months of inflows. This is at least partly because banks are not providing fair compensation to savers in an environment of high inflation. Take the 5.85% offered by the State Bank of India, the country’s largest commercial lender, on a five-year fixed deposit. This is when the current inflation rate is 7.4% and the Indian government pays investors between 6.3% and 7.5% to borrow from three months to 10 years.

Not only does banks’ greed towards depositors act as a source of excess market liquidity, but it also provides an outlet. With assets revaluing faster than liabilities, HDFC Bank Ltd., India’s most valuable lender, recently announced a 19% increase in net interest income in the September quarter compared to the last quarter. ‘last year. This makes investors optimistic. An index that tracks banking stocks on the Bombay Stock Exchange has returned almost 15% so far this year, compared to 2% gains – including dividends – for the local currency Nifty index.

Can the country’s banks continue to squeeze depositors in this way? Loans and advances are up 16% year-on-year as economic activity quickly normalizes to pre-pandemic levels, generating demand for credit along the way. However, system-wide deposits only increase by 9%. The divergence is largely due to currency outflows – official reserves fell by more than $100 billion from their peak in September 2021 as the RBI tried to halt the rupee’s slide against the dollar in rise.

If credit expansion continues, Indian banks may have to compete more seriously for liquidity by offering to pay better rates, indirectly creating an incentive for capital to move away from the stock market and into deposits. term. “This is the biggest risk for Indian stocks over the next year,” Macquarie’s Suresh said. To know when the tight money will finally hit the Indian stock market, investors will pay attention to fixed deposit interest rates.

More from Bloomberg Opinion:

• Indian bonds are as bland as UK gilts. Really ? :Andy Mukherjee

• Ask the markets to capitulate, better to bounce back: John Authers

• Xi’s executive retirement age limit makes no sense: Shuli Ren

This column does not necessarily reflect the opinion of the Editorial Board or of Bloomberg LP and its owners.

Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services in Asia. Previously, he worked for Reuters, the Straits Times and Bloomberg News.

More stories like this are available at bloomberg.com/opinion

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Illegal money lending: 28 cases filed in one day in Surat https://r43dsfrs.com/illegal-money-lending-28-cases-filed-in-one-day-in-surat/ Tue, 18 Oct 2022 22:44:57 +0000 https://r43dsfrs.com/illegal-money-lending-28-cases-filed-in-one-day-in-surat/ Surat Police recorded 28 offenses against 27 people under the Money Lenders Act at six police stations in the city in a single day on Tuesday. This was part of a campaign to control the harassment of illegal money lenders in the city carried out at the police stations of Uttran, Amroli, Jehangirpura, Rander, Paal […]]]>

Surat Police recorded 28 offenses against 27 people under the Money Lenders Act at six police stations in the city in a single day on Tuesday.

This was part of a campaign to control the harassment of illegal money lenders in the city carried out at the police stations of Uttran, Amroli, Jehangirpura, Rander, Paal and Adajan in Zone 5 of Surat city.

Additional Police Commissioner Sharad Singhal said: “We have come across incidents of poor families falling victim to unauthorized moneylenders. In case of non-payment of installments, the winning family member is harassed to such an extent that there have even been cases of suicide.

Adding that lenders charge people 5-10% interest per month, Singhal said, “They even take blank checks and property documents from the borrower. We will be extending the drive to other police station areas in the coming days. We also call on citizens to come forward and share the details of these illegal activities. »

Police said they also seized 10 liquor bottles, 32 diaries, 34 blank cheques, 18 account books and cell phones along with other documentary evidence from the premises of the defendants.

The defendants are Ashok Gupta, Sunny Bagada, Rajesh Gangani, Vishnu Rabari, Kapil Sendane, Vinod Kumar Jain, Goverdhan Zadaphia, Akash Patel, Abbas Badshah, Mahesh Viras, Raj Rajb-har, Hasmukh Prajapati, Yasin Diwan, Nikunj Patel, Manhar Bo -tare, Salim Dinani, Jitendra Rawal, Nagesh Desai, Girish Pastagiya, Virendra Gaun, Shanker Shahu, Vinod Limbchaiya, Akash Jain, Dipak Shah, Nehlabhai Somya, Kumar Pal and Girish Hindu. Of these, two offenses were filed against Akash Jain.

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