India’s central bank did the ‘wrong thing’ by not cutting interest rates, Mark Mobius says

India’s central bank was wrong to keep its benchmark interest rates unchanged on Thursday, according to veteran emerging markets investor Mark Mobius. The Reserve Bank of India surprised markets by keeping its repo rate — the rate at which it lends to other banks — unchanged at 5.15%. Prior to the decision, economists predicted a sixth rate cut from the central bank amid a notable slowdown in the Indian economy. “I think they did the wrong thing,” Mobius, who is founding partner at Mobius Capita


India’s central bank was wrong to keep its benchmark interest rates unchanged on Thursday, according to veteran emerging markets investor Mark Mobius.
The Reserve Bank of India surprised markets by keeping its repo rate — the rate at which it lends to other banks — unchanged at 5.15%.
Prior to the decision, economists predicted a sixth rate cut from the central bank amid a notable slowdown in the Indian economy.
“I think they did the wrong thing,” Mobius, who is founding partner at Mobius Capita
India’s central bank did the ‘wrong thing’ by not cutting interest rates, Mark Mobius says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: saheli roy choudhury
Keywords: news, cnbc, companies, wrong, adjustment, mark, thing, rate, interest, bank, indias, rates, mobius, think, central, struggled, unchanged, cutting, tax


India's central bank did the 'wrong thing' by not cutting interest rates, Mark Mobius says

India’s central bank was wrong to keep its benchmark interest rates unchanged on Thursday, according to veteran emerging markets investor Mark Mobius.

The Reserve Bank of India surprised markets by keeping its repo rate — the rate at which it lends to other banks — unchanged at 5.15%. Prior to the decision, economists predicted a sixth rate cut from the central bank amid a notable slowdown in the Indian economy.

“I think they did the wrong thing,” Mobius, who is founding partner at Mobius Capital Partners, told CNBC’s “Street Signs” on Friday about the RBI. “I think they were reacting to the short-term situation with inflation, which is mainly caused by food prices, and, specifically, onion prices.”

In October, India’s annual retail inflation rose to 4.62% on the back of higher food prices, Reuters reported. That was a tick above the RBI’s medium-term target of 4%.

“They should have lowered rates,” Mobius said, adding it could improve business confidence in the country and may help to solve some of the debt problems in India’s financial services sector. He explained that the country is “going through a big adjustment right now because of the reforms that have taken place, particularly on the taxation side,” referring to Prime Minister Narendra Modi’s landmark Goods and Services Tax reforms.

The government has struggled to collect sufficient revenue since its new tax schemes went into effect in mid-2017. Recent reports said the GST structure is set to be reviewed.

“This is an adjustment that people have to be accustomed to and it takes time. But next year, I believe that this will do well — they would have made this adjustment and realize the reforms are having an impact,” Mobius said, adding he remains bullish on India. Many micro, small and medium-sized businesses have struggled as a result of the new value-added taxes.


Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: saheli roy choudhury
Keywords: news, cnbc, companies, wrong, adjustment, mark, thing, rate, interest, bank, indias, rates, mobius, think, central, struggled, unchanged, cutting, tax


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If I have student loans to pay off, should I also save for retirement? Here’s what experts say

If you went to college, there’s a good chance you still have student loans to tackle. It takes Americans with student debt an average of 21 years to completely pay off their education, and the average student loan payment is $393 a month. Since everyone’s financial circumstances differ, the paths people take toward eliminating student debt while also saving for retirement are highly personal. How much should you be saving for retirement if you have student loans? Then total up how much your mont


If you went to college, there’s a good chance you still have student loans to tackle.
It takes Americans with student debt an average of 21 years to completely pay off their education, and the average student loan payment is $393 a month.
Since everyone’s financial circumstances differ, the paths people take toward eliminating student debt while also saving for retirement are highly personal.
How much should you be saving for retirement if you have student loans?
Then total up how much your mont
If I have student loans to pay off, should I also save for retirement? Here’s what experts say Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: anna hecht
Keywords: news, cnbc, companies, retirement, small, student, saving, interest, start, pay, returns, debt, financial, say, save, heres, loans, experts


If I have student loans to pay off, should I also save for retirement? Here's what experts say

If you went to college, there’s a good chance you still have student loans to tackle. It takes Americans with student debt an average of 21 years to completely pay off their education, and the average student loan payment is $393 a month. With that kind of weight on your wallet, you might wonder whether you should save for retirement while paying back loans. According to financial experts, the answer is typically ‘yes.’ “If you are able to allocate even a small amount of funds towards retirement, you should still do so even while you are paying down student loans,” Jordan Sowhangar, a Pennsylvania-based certified financial planner, tells CNBC Make It. Since everyone’s financial circumstances differ, the paths people take toward eliminating student debt while also saving for retirement are highly personal. But to help you take a smart approach, here’s what financial experts say about how to tackle both simultaneously.

How much should you be saving for retirement if you have student loans?

The truth is, the answer to this question is going to be different for everyone. Still, experts say there are a few key things to consider when deciding how to allocate your money. First, take a close look at how much you’re making and how much your student loan payments cost each month. Then total up how much your monthly expenses are, including student loans, and subtract that from your total income. The difference will give you an idea of how much is leftover to be put toward retirement. “The minimum payment should always be met on the current student loan debt to avoid penalties that could negatively impact your credit score,” Sowhangar says. “After that has been satisfied, whatever percentage you are able to contribute towards an employer-sponsored retirement plan to take advantage of the maximum employer match should then be saved.”

You should also take into account how much interest you’re paying on your student loans. If sky-high rates are making it difficult to keep up, you may want to consider putting more toward your debt even before contributing up to your company match in savings. “Are there higher interest rate student loans over 6% to 7%? If so, it may be wise to put a greater percentage of the additional income toward those loans first,” Sowhanger says.

Contribute what you can now

Even if you can’t meet the company match on your 401(k), contributing something — even a small monthly investment toward your retirement — is better than nothing. In the U.S., an estimated 56% of Americans between 18 and 29 put off saving for retirement because they still owe on their student loans. As a result, they’re missing out on compound interest that could help their savings grow over time. With compound interest, not only do you earn returns on your initial investment, but you also earn returns on those returns at the end of each compounding period. If you start investing early and let your money sit, it will grow exponentially. “No matter what your debt situation looks like, you need to always put something away for retirement. The power of compounding is a much-needed tailwind to any investment portfolio,” says Malik S. Lee, certified financial planner and founder of Felton and Peel Wealth Management.

Guido Mieth | DigitalVision | Getty Images

An 18-year-old who invests $100 per month and earns a 6% rate of return would accumulate $307,000 by 65. But if they wait until 40 to start saving, they’d only have $70,000 by 65, according data from Charles Schwab. Even if you can only contribute a small portion of your paycheck to retirement, it’s better to start early and invest small amounts than to put away nothing at all. “Yes, it’s going to be tough. But if you can make enough sacrifices early on, then you won’t need to make these sacrifices later on in life,” says Ryan Marshall, a New Jersey-based certified financial planner.

How can you save for later in life more efficiently?


Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: anna hecht
Keywords: news, cnbc, companies, retirement, small, student, saving, interest, start, pay, returns, debt, financial, say, save, heres, loans, experts


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Blowout jobs report means Fed may sound even less likely to move on interest rates

November’s surprisingly strong jobs report makes it less likely the Fed will move to cut interest rates, and it could sound even more hawkish when it meets next week. A so-called hawkish Fed is one that is more likely to move to tighten policy than make it looser by cutting interest rates or taking other measures. Stocks jumped and bond yields initially rose after the jobs report was released. Swonk said the jobs report showed the impact from trade, and that will be an important topic for the Fe


November’s surprisingly strong jobs report makes it less likely the Fed will move to cut interest rates, and it could sound even more hawkish when it meets next week.
A so-called hawkish Fed is one that is more likely to move to tighten policy than make it looser by cutting interest rates or taking other measures.
Stocks jumped and bond yields initially rose after the jobs report was released.
Swonk said the jobs report showed the impact from trade, and that will be an important topic for the Fe
Blowout jobs report means Fed may sound even less likely to move on interest rates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: patti domm
Keywords: news, cnbc, companies, blowout, meeting, means, likely, market, fed, trade, sound, cut, rates, think, interest, report, jobs


Blowout jobs report means Fed may sound even less likely to move on interest rates

A hiring sign is displayed in a business window along a shopping street in lower Manhattan on July 05, 2019 in New York City.

November’s surprisingly strong jobs report makes it less likely the Fed will move to cut interest rates, and it could sound even more hawkish when it meets next week.

A so-called hawkish Fed is one that is more likely to move to tighten policy than make it looser by cutting interest rates or taking other measures. After three cuts this year, the Fed has signaled a neutral stance, where it is on hold but watching economic data.

The 266,000 jobs added in November is an important number since it defies expectations, at least for one month, that the labor market is slowing down. The report was much better than the 187,000 jobs expected by economists.

The end of the GM strike helped inflate the number, with 41,300 jobs added in motor vehicles and parts, but the overall gain in payrolls was still about 100,000 better than expected by many economists. Manufacturing gained 54,000 overall.

“The bottom line is the labor market is cooking. It clearly says the Fed should not do anything more. The Fed can now sit back on the shelf, not have to worry about having to be pestered about lower rates,” said Ward McCarthy, chief financial economist at Jefferies.

Stocks jumped and bond yields initially rose after the jobs report was released. The fed funds futures market moved to erase one rate cut that was priced in for next year, and the market was pricing just about 20 basis points of one quarter point cut in morning trading, according to Michael Schumacher, director of rates at Wells Fargo Securities.

“The Fed was made more of a sideshow with this number,” said Schumacher. “You think back to [Fed Chairman Jerome] Powell’s comments of the last month or two. It seems to me he doesn’t want to cut again. This takes away a little more impetus to cut.”

The focus of the market in the week ahead is likely to be more riveted on trade than the Fed, because of President Donald Trump’s looming Dec. 15 deadline on $156 billion in new tariffs on China, if there’s no trade deal.

Strategists expect the Fed to leave its economic forecasts and interest rate outlook little changed when it releases new projections after its Wednesday meeting. The Fed has emphasized that it is on hold as long as the economy continues to show a moderate pace of growth and low inflation.

“They’re pretty comfortable where things are at, and as long as we get a trade truce, they’re fine,” said Diane Swonk, chief economist at Grant Thornton. “There were people who wanted to sound a lot more hawkish at that last meeting. They did get two dissenters not wanting to cut rates further and many presidents going into the meeting saying we didn’t need an additional cut.”

Swonk said the jobs report showed the impact from trade, and that will be an important topic for the Fed. The gain in manufacturing, an area hit by trade wars, is still lagging, with most of the gains coming from the GM workers.

“Forty percent of the gains were in health care and leisure and hospitality, with food services driving it. Anything not affected by trade is holding up,” she said, but she added that retail is weak as online retail continues to take jobs from brick-and-mortar stores.

Ian Lyngen, head of fixed income strategy at BMO, said while it is unlikely, the strong jobs report has raised the question of whether the Fed would actually consider raising interest rates next year.

“I still think they cannot hike as long as the labor market is strong and growth is okay, but they don’t have inflation,” said Lyngen. “Inflation is a bigger deal to this Fed than what’s going on in a very tight labor market.”

Swonk said the Fed is still more likely to move to cut than raise interest rates.

“I think they will wait and see. I think much depends now whether the tariffs are rolled back. The biggest issue for the Fed is do we get more of a detente in the trade war that allows them to firmly stand on the sidelines,” Swonk said.

John Briggs, NatWest Markets head of strategy, said traders were already expecting a hawkish Fed at the meeting next week because they had expected no change in the Fed’s rate cut forecast. Now, the strong jobs number could make the Fed’s tone sound even more so, when Powell briefs the media after the meeting Wednesday afternoon.

“We expect a good holiday season, and the job market just continues to power ahead and support the consumer,” said Briggs. “That’s been the story of 2019, and we’re finishing with the same theme — weak manufacturing and a resilient consumer.” Powell should reinforce that message.


Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: patti domm
Keywords: news, cnbc, companies, blowout, meeting, means, likely, market, fed, trade, sound, cut, rates, think, interest, report, jobs


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November jobs report proves Fed was right to cut interest rates, former top official says

The strong November jobs report released Friday is evidence that the Federal Reserve has set interest rates correctly, former top Federal Reserve official Donald Kohn told CNBC. The Fed has cut interest rates three times this year, the most recent of which came in October, and lowered its benchmark funds rate by 25 basis points to a range of 1.5% to 1.75%. Fed Chairman Jerome Powell indicated then that the central bank was likely pausing its period of monetary easing. It’s doing great all by its


The strong November jobs report released Friday is evidence that the Federal Reserve has set interest rates correctly, former top Federal Reserve official Donald Kohn told CNBC.
The Fed has cut interest rates three times this year, the most recent of which came in October, and lowered its benchmark funds rate by 25 basis points to a range of 1.5% to 1.75%.
Fed Chairman Jerome Powell indicated then that the central bank was likely pausing its period of monetary easing.
It’s doing great all by its
November jobs report proves Fed was right to cut interest rates, former top official says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: kevin stankiewicz
Keywords: news, cnbc, companies, fed, vice, official, chairman, interest, cut, federal, proves, right, report, rates, economy, reserve, jobs, market, kohn


November jobs report proves Fed was right to cut interest rates, former top official says

The strong November jobs report released Friday is evidence that the Federal Reserve has set interest rates correctly, former top Federal Reserve official Donald Kohn told CNBC.

“If anything it reinforces their judgment that they’ve got policy in a good place … to support the continued good growth in the economy with very contained inflation,” Kohn, a former vice chairman of the Federal Reserve Board, said Friday on “Closing Bell.”

The Labor Department reported Friday that the U.S. economy added 266,000 jobs last month, significantly eclipsing estimates of 187,000 from economists polled by Dow Jones. The unemployment rate dropped back to 3.5%, equaling a mark earlier this year that was, at the time, the lowest since 1969.

The Fed has cut interest rates three times this year, the most recent of which came in October, and lowered its benchmark funds rate by 25 basis points to a range of 1.5% to 1.75%.

Fed Chairman Jerome Powell indicated then that the central bank was likely pausing its period of monetary easing. Fed officials have generally described the U.S. economy as strong, powered by robust consumer spending, despite external pressures such as the U.S.-China trade war and uncertainty around the United Kingdom’s departure from the European Union.

President Donald Trump, however, has continued to criticize Powell’s handling of interest rates, arguing that the Fed should lower them further to make the U.S. more competitive in a global market where some countries have negative rates.

Trump appointed Powell to lead the Fed, whose Federal Open Market Committee meets next week. It is widely expected to leave rates unchanged.

“They certainly don’t need to ease to help the labor market. It’s doing great all by itself,” said Kohn, who was vice chairman between 2006 and 2010.

Assuming no major economic event, Kohn said he expects the Fed to keep interest rates steady for the next year, arguing that would keep the economy in “decent shape.” If anything, he said, the next adjustment to rates would more likely be raising them by 25 basis points if inflation begins to pick up.

But, Kohn said, “Right now it looks like it’s a ways away.”


Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: kevin stankiewicz
Keywords: news, cnbc, companies, fed, vice, official, chairman, interest, cut, federal, proves, right, report, rates, economy, reserve, jobs, market, kohn


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India’s central bank unexpectedly keeps interest rates unchanged and slashes GDP forecast

The Reserve Bank of India (RBI) logo is displayed outside of the bank’s headquarters in Mumbai, India, on Tuesday, Aug. 9, 2011. India’s central bank surprised on Thursday by keeping its interest rates unchanged. Markets had widely expected a sixth rate cut from the Reserve Bank of India amid a notable slowdown in the Indian economy. As things stand, the benchmark repo rate — the rate at which it lends to commercial banks — remains at 5.15%. The central bank reiterated it will maintain its “acco


The Reserve Bank of India (RBI) logo is displayed outside of the bank’s headquarters in Mumbai, India, on Tuesday, Aug. 9, 2011.
India’s central bank surprised on Thursday by keeping its interest rates unchanged.
Markets had widely expected a sixth rate cut from the Reserve Bank of India amid a notable slowdown in the Indian economy.
As things stand, the benchmark repo rate — the rate at which it lends to commercial banks — remains at 5.15%.
The central bank reiterated it will maintain its “acco
India’s central bank unexpectedly keeps interest rates unchanged and slashes GDP forecast Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: saheli roy choudhury
Keywords: news, cnbc, companies, indian, unchanged, indias, interest, policy, rbi, reserve, central, rates, slashes, keeps, gdp, forecast, bank, inflation, remains, unexpectedly, target, india, rate


India's central bank unexpectedly keeps interest rates unchanged and slashes GDP forecast

The Reserve Bank of India (RBI) logo is displayed outside of the bank’s headquarters in Mumbai, India, on Tuesday, Aug. 9, 2011.

India’s central bank surprised on Thursday by keeping its interest rates unchanged.

Markets had widely expected a sixth rate cut from the Reserve Bank of India amid a notable slowdown in the Indian economy.

As things stand, the benchmark repo rate — the rate at which it lends to commercial banks — remains at 5.15%.

The Indian rupee weakened against the dollar, changing hands at 71.63 from an earlier level of 71.43. Indian stocks were mixed after the decision, with the Nifty 50 down 0.21% while the Sensex traded near flat.

In its policy statement, the RBI said the decision to keep the rate unchanged was in line with its objective of achieving its medium-term inflation target of 4%, with an upper and lower limit of 6% and 2%, respectively, while supporting growth.

The central bank reiterated it will maintain its “accommodative” stance as long as it is necessary to revive growth while ensuring that inflation remains within the target. It added that while there is “monetary policy space for future action,” it felt appropriate to pause at the stage in light of the current growth-inflation dynamics.

Economists have questioned the efficacy of the RBI’s aggressive rate cuts this when much of that did not appear to have been transmitted back to the economy, especially in the credit market. Inflation is also ticking up due to rising food prices.


Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: saheli roy choudhury
Keywords: news, cnbc, companies, indian, unchanged, indias, interest, policy, rbi, reserve, central, rates, slashes, keeps, gdp, forecast, bank, inflation, remains, unexpectedly, target, india, rate


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Australia retail sales stagnate, exports skid in bleak start to fourth-quarter

People walk past the Myer Christmas window display as they do their shopping on December 20, 2012 in Melbourne, Australia. Australian retailers had it tough in October as skittish consumers chose to hoard any windfall from lower interest rates and tax rebates, likely heralding another quarter of disappointment for the economy. Extending a spate of soft reports, retail sales were flat in October at A$27.6 billion ($18.73 billion) when analysts had looked for a 0.3% gain. The dire result was parti


People walk past the Myer Christmas window display as they do their shopping on December 20, 2012 in Melbourne, Australia.
Australian retailers had it tough in October as skittish consumers chose to hoard any windfall from lower interest rates and tax rebates, likely heralding another quarter of disappointment for the economy.
Extending a spate of soft reports, retail sales were flat in October at A$27.6 billion ($18.73 billion) when analysts had looked for a 0.3% gain.
The dire result was parti
Australia retail sales stagnate, exports skid in bleak start to fourth-quarter Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-05
Keywords: news, cnbc, companies, bleak, spending, rebates, cut, interest, fourthquarter, exports, rates, 2020, billion, rate, start, stagnate, tax, retail, early, australia, sales, skid


Australia retail sales stagnate, exports skid in bleak start to fourth-quarter

People walk past the Myer Christmas window display as they do their shopping on December 20, 2012 in Melbourne, Australia.

Australian retailers had it tough in October as skittish consumers chose to hoard any windfall from lower interest rates and tax rebates, likely heralding another quarter of disappointment for the economy.

Data out on Thursday also showed the country’s trade surplus shrank by a third in October as resource exports came off the boil, a worrying turn for what has been a vital prop to growth.

Extending a spate of soft reports, retail sales were flat in October at A$27.6 billion ($18.73 billion) when analysts had looked for a 0.3% gain. Clothing, home wares and department stores all saw declines in the month.

The sector had already suffered its worst 12-month stretch since the 1991 recession as shoppers struggled with stagnant wages and sky-high debt.

The dire result was particularly telling as the Reserve Bank of Australia (RBA) had cut interest rates to a record low of 0.75% in early October, its third easing since June.

Neither were government giveaways providing much impetus with billions in tax rebates being saved rather than spent.

That is becoming an increasing headache for Prime Minster Scott Morrison given he won re-election in May on a pledge the economy would always be stronger under his guidance.

“The spending ‘strike’ of Q3 looks to have extended into early Q4 with still no evidence of a boost from tax refunds or rate cuts – the combined value of which will be adding around $16.6 billion to household disposable incomes over the year to June 2020,” said Westpac senior economist Matthew Hassan.

Investors are wagering policy makers will have to do a whole lot more to revive spending and futures are fully priced for a rate cut to 0.5% by April <0#YIB:>, with a real chance of a move to 0.25% by late 2020.


Company: cnbc, Activity: cnbc, Date: 2019-12-05
Keywords: news, cnbc, companies, bleak, spending, rebates, cut, interest, fourthquarter, exports, rates, 2020, billion, rate, start, stagnate, tax, retail, early, australia, sales, skid


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Porsche attracting Tesla owners with all-electric Taycan sports car

LOS ANGELES – Porsche is receiving a surprising amount of interest from Tesla owners for its new all-electric Taycan sports car, according to the head of the automaker’s North American operations. Klaus Zellmer, president and CEO Porsche Cars North America, said out of “thousands” of potential U.S. customers who have shown “sincere interest” in the vehicle, Tesla owners are the highest among non-Porsche owners. The German automaker, according to Zellmer, was “surprised” by the initial number of


LOS ANGELES – Porsche is receiving a surprising amount of interest from Tesla owners for its new all-electric Taycan sports car, according to the head of the automaker’s North American operations.
Klaus Zellmer, president and CEO Porsche Cars North America, said out of “thousands” of potential U.S. customers who have shown “sincere interest” in the vehicle, Tesla owners are the highest among non-Porsche owners.
The German automaker, according to Zellmer, was “surprised” by the initial number of
Porsche attracting Tesla owners with all-electric Taycan sports car Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-03  Authors: michael wayland
Keywords: news, cnbc, companies, porsche, potential, according, surprised, zellmer, taycan, allelectric, vehicle, car, owners, interest, tesla, attracting


Porsche attracting Tesla owners with all-electric Taycan sports car

LOS ANGELES – Porsche is receiving a surprising amount of interest from Tesla owners for its new all-electric Taycan sports car, according to the head of the automaker’s North American operations.

Klaus Zellmer, president and CEO Porsche Cars North America, said out of “thousands” of potential U.S. customers who have shown “sincere interest” in the vehicle, Tesla owners are the highest among non-Porsche owners.

“They currently drive a Tesla, they’re open to experiencing something new now,” he told CNBC on the sidelines of the L.A. Auto Show in November. “We’re very happy about that.”

The German automaker, according to Zellmer, was “surprised” by the initial number of owners from Tesla, which is known for its cult following.

“We were actually surprised right from the get-go to see Tesla be so much in the foreground as a potential source of business,” he said.

Behind Tesla owners were Porsche’s usual competitors such as Audi, BMW and Mercedes-Benz. Current Porsche owners made up about half of the potential U.S. consumers who have shown significant interest in the vehicle, according to Zellmar. The company declined to disclose a specific amount of U.S. hand raisers for the Taycan.


Company: cnbc, Activity: cnbc, Date: 2019-12-03  Authors: michael wayland
Keywords: news, cnbc, companies, porsche, potential, according, surprised, zellmer, taycan, allelectric, vehicle, car, owners, interest, tesla, attracting


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How to avoid digging yourself deeper in debt this holiday season

Yet a recent survey from CreditCards.com found that 45% of all card holders are willing to take on holiday-related credit-card debt this season. Meanwhile, some 41% of adults who have a credit card are already in debt, according to the website’s research. More from Personal Finance:Borrowing to squash credit card debt? “If you’ve been in debt for that long, it’s kind of hard to separate what was holiday and what was not.” Consider a 0% transfer cardThere are still offers out there where you can


Yet a recent survey from CreditCards.com found that 45% of all card holders are willing to take on holiday-related credit-card debt this season.
Meanwhile, some 41% of adults who have a credit card are already in debt, according to the website’s research.
More from Personal Finance:Borrowing to squash credit card debt?
“If you’ve been in debt for that long, it’s kind of hard to separate what was holiday and what was not.”
Consider a 0% transfer cardThere are still offers out there where you can
How to avoid digging yourself deeper in debt this holiday season Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-02  Authors: lorie konish
Keywords: news, cnbc, companies, credit, avoid, card, transfer, christmas, debt, interest, rewards, creditcard, digging, holiday, deeper, rossman, season


How to avoid digging yourself deeper in debt this holiday season

Kerkez | Getty Images

There are certain traditions you probably want to keep this holiday season. Ballooning credit-card debts shouldn’t be one of them. Yet a recent survey from CreditCards.com found that 45% of all card holders are willing to take on holiday-related credit-card debt this season. Meanwhile, some 41% of adults who have a credit card are already in debt, according to the website’s research. More from Personal Finance:

Borrowing to squash credit card debt? This could help

Fewer women now pay credit card balances in full

Many Americans say they’re worse off since Great Recession More than half of those people — 56% — have been in debt for at least a year, while more than a third — 37% — have been carrying those balances for two years. “Where does Christmas 2017 or Christmas 2018 really begin and end?” Ted Rossman, industry analyst at CreditCards.com, said. “If you’ve been in debt for that long, it’s kind of hard to separate what was holiday and what was not.” There are some things you can do to start to get out from under the weight of those bills — and prevent those balances from creeping even higher this year.

Consider a 0% transfer card

There are still offers out there where you can transfer your debt to a 0% interest credit card. That interest rate can last as long as 21 months. And you don’t necessarily have to have a stellar credit score to qualify. If your number is 670 or better, you should be able to take advantage of one of these offers, Rossman said. The average nationwide credit score is about 705. You may also want to look for a card that does not have a transfer fee, which can be as much as 3% to 5% of the amount moved. Cards including the Chase Slate, BankAmericard and Amex EveryDay offer this feature, according to Rossman.

You should act sooner than later if you want to take advantage of such an offer, Rossman said. That’s because after three interest rate cuts by the Federal Reserve, credit-card companies may not be as generous with these plans as they look to make up revenue in other areas. That could result in higher transfer fees or shorter time periods for the 0% interest period, he said.

Put your rewards to use

Often, credit-card holders are not aware of just how many points or rewards they’ve already accumulated. A conservative estimate found that cardholders typically have the equivalent of about $340 in unused airline miles, $230 in hotel points and $160 in credit-card points, according to Rossman’s research. “Take stock of what you may already have and, where appropriate, seek to earn more rewards on your holiday shopping,” Rossman said. “But more than anything, take advantage of what you’ve already got.”

Where does Christmas 2017 or Christmas 2018 really begin and end? If you’ve been in debt for that long, it’s kind of hard to separate what was holiday and what was not. Ted Rossmann industry analyst at CreditCards.com

When it comes to rewards, the best deals are often on travel, followed by cash back or gift cards, Rossman said. One area that’s often not the best deal: merchandise, where you can end up spending more money on products than you would if you bought them on your own, Rossman said.

Think about a side hustle


Company: cnbc, Activity: cnbc, Date: 2019-12-02  Authors: lorie konish
Keywords: news, cnbc, companies, credit, avoid, card, transfer, christmas, debt, interest, rewards, creditcard, digging, holiday, deeper, rossman, season


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