Credit cards are engineered to make sure you become a long-term, loyal, and indebted customer. Since many of the decisions that consumers make are not rational, card issuers work on those irrational impulses to make sure you spend money with their card without thinking logically about your actions.Here are four methods that card issuers use to get you to sign up for their cards and keep you in debt. (See also: Which Type of Rewards Credit Card is Right for You?)
1. Appealing to Your Individuality and Creativity
Once upon a time, credit cards all came in the same boring colors. But sometime in the past 20 or so years, banks started allowing cardholders to express their individuality through their credit cards. Suddenly, you could show off anything from your adorable nephews to your commitment to the Humane Society with every purchase you made.
Part of what is going on here is something behavioral economists refer to as the IKEA effect. This effect causes individuals to value something more if they worked to create it. Not only does that mean you’re more likely to keep the inexpensive
The novice trader has a rather complicated in the world of currency exchange. He has a lot of questions that very few answers. Some of them have to deal for a long time, and the good of it, it seems, is not enough. The most important resource on forex analysis ttps://freshforex.com/analitics/ – this time, which no one wants to lose nothing. Therefore, newcomers have traditionally try to get started right away without being savvy in terms of basic forex. On the one hand, such an approach is valid, on the other – is reckless. In this article we will explain what the potential of the Forex trend.
The essence of the trend potential in forex market analysis
If you think about it in the word “potential”, it becomes clear that this is an opportunity to make a profit trend. Or the lack of such a possibility. Calculating the potential advance, you are free from the risk of losing investments.
So, you want to see if the trend for us or not existing in the market is good. To do this, you need to find the line between reversing the trend and its correction. Corrective waves – it’s not drastic changes, but only
It is simple arithmetic that can help you to decide whether you need GAP insurance cover or not and it has nothing to do whether you buy a new car or a used one. The cost that you have to bear for purchasing the car, the rate of depreciation and the mode of financing are basic factors that have to be considered to decide about the necessity of buying GAP insurance. The condition of the car, new or old does not matter at all. Having a look at the financial equations involved in buying a car will help to understand things better.
Its big money
When you buy a car, the total payout includes the cost of the car plus taxes and duties together with the cost of buying a comprehensive car insurance policy and this is quite a significant sum. In case you are ready to bear the total liability and you have the money then you surely do not need GAP insurance. But if you have to borrow money for buying the car it means that besides acquiring the car you are also acquiring a big liability of paying back the loan.
Tax-related ID theft is a scam that can hit you from all directions. And tax fraud lightning can strike twice, too.
Refund fraud is again a hot topic this tax season. And we still have more than a month until April 18, the filing deadline for most taxpayers this year.
The Internal Revenue Service even had to halt its own online service, put into place to help protect tax filers who were fraud victims in earlier years. Cyber crooks had figured out a way to break into that system and re-victimize some of those same taxpayers. The crooks are just that daring.
Security watchdog, KrebsOnSecurity.com, reported in March that ID thieves figured out a way to break into the IRS system set up to protect the identity of previous victims of tax refund fraud.
By getting a PIN, the cyber crook can file yet another phony return using your ID. The IRS has suspended the program.
Some taxpayers are already worried they’re going to get hit again this tax season. Some already know that they’re ID tax fraud victims twice in a row.
We’re hearing more stories of other hacks this tax season too — including the IRS admitting to a much longer list of victims of ID theft via a “Get My Transcript” fiasco.
Melanie Duquesnel, president and CEO of the Better Business Bureau serving eastern Michigan,
Americans owe a staggering $1.3 trillion in student loans — a debt load that looks set to not just grow, but also pile up faster in coming years.
Yet, even with economists and politicians across party lines raising concerns about the swell in outstanding student debt, some experts say it’s too early to conclude the loans are dampening the economic recovery.
“I think the evidence that this is having a drag on the economy is unclear as of now,” said Andrew Kelly, director of the Center on Higher Education Reform at the American Enterprise Institute, on CNBC’s “Power Lunch.”
“More student debt means that more people are getting an education,” he said Wednesday. “People who get an education have higher wages. They pay more in taxes; they buy more things.”
Economists aren’t so sure. Earlier this month, researchers at the St. Louis Fed’s Center for Household Financial Stability said in a paper that student debt may “present a significant headwind for the aggregate economy.”
What makes student debt particularly concerning, the economists wrote, is that much of it is held by younger borrowers — which may inhibit them from buying homes, investing, or saving for retirement as they age.
Kelly, however, believes the “crisis rhetoric” surrounding student debt has been overblown.
You likely already know you need some version of Tax Form 1040 to file your personal taxes, and you’ll also be needing your W-2 from your employer to help you fill it out. But you might be overlooking some of the other forms you’ll need if you, say, won big on that trip to Las Vegas or started paying back your student loans last year.
Here are some of the tax forms you might not have known you needed.
What happens in Vegas stays in Vegas, except if you win money — then you might have to tell the IRS about it. Form W-2G, Gambling Winnings, is used to report gambling winnings (direct wager only) of $600 or more in any one session and 300 times the buy-in or wager.
Tax Form 1040X
Need to correct your tax return? Whether it’s reporting additional withholding, changing your tax deductions or personal exemptions, adding or removing dependents or reporting additional income, this is the form to use.
Remember, though, you do not need to file a 1040X if you are only correcting errors in math ― IRS computers automatically check the math and make those corrections for you.
Did you move? Well, the IRS would like to
Nick Denton’s Gawker, the Internet gossip site, has repeatedly invaded my privacy and maligned my family, as it has those of many of my friends. I thought to take the opportunity of Hulk Hogan’s privacy suit against Denton and Gawker, now being tried in a Florida court, to argue that a loss for Gawker might reasonably inhibit its feeling that there are no limitations or consequences in digital publishing.
But, on further consideration, I realized that has already happened, no matter the trial’s outcome.
Social media virality may have magnified Gawker’s reach and importance and feelings of invulnerability, but with revenue of about $45 million a year, it is a very small publishing business now facing disproportionate and perilous legal risks. The $100 million lawsuit against the company for posting a secretly recorded sex video of wrestler and reality TV star Hogan threatens its survival. To help with these costs, the heretofore independent Denton has been compelled to take an investment round, a deal which presumably would discourage him from recklessly risking his investor’s money in the future.
Then, too, as the Hogan lawsuit wound its way to court, Gawker — continuing to pursue its belief that sexual perfidy is the key to understanding the sorry
It’s a big temptation: Your pockets are empty, and you desperately need that morning coffee to get through that commute. But don’t do it — don’t take that credit card out of your pocket. If you can’t pay for that latte with cash, skip it and drink from the free coffeepot at work.
It’s easy to pay for purchases with credit cards. Maybe too easy. But there are some items that you should never pay for with a credit card. Why? There are always better ways to pay for these items, whether they are small, everyday purchases or big-ticket buys.
Here are five items for which you should never rely on plastic.
1. Medical Bills
Facing a big medical bill from your doctor? Don’t use your credit card to pay for it. Instead, ask your medical provider to set up an installment payment plan for you. Most medical providers will do this, and the interest rates that they charge (if any) will be lower than the rates attached to your credit card.
2. Income Taxes
If you owe taxes, you do have the option of paying them with your credit card. Again, though, there’s a better choice. If you owe thousands of dollars to
CATERPILLAR is one of the most renowned industrial brands. It makes the kind of heavy machinery—loaders, excavators and off-road trucks—that is used in the construction, mining and transport industries when things need to get dug out or shifted somewhere. But the firm’s latest results, released on January 28th, show that it is struggling to shift its own products. “This past year was a difficult one for many of the industries and customers we serve,” it said. Revenues in 2015 were nearly 15% lower than they were in 2014, and 29% below the 2012 peak.
The company’s woes are emblematic of the problems facing manufacturers worldwide. Although manufacturing is a much smaller part of most developed economies than services—just 12% of output in America, for example—its recent weakness makes many economists nervous about the wider outlook.Recent data point to the size of the problem. Big jobs cuts have been announced this year by GE, Tata Steel and Bombardier. In December industrial production fell by 0.7% in Italy, 1.1% in Britain, 1.2% in Germany and 1.6% in France. In China both the official purchasing managers’ index (PMI) of manufacturing activity and that of Caixin, a leading financial magazine, are below 50, the
I heard something on the radio this morning that got me fired up. It was a segment about tips on how to save more money. What came was a predictable list of “brew your own coffee,” “buy generic products,” and “bring your lunch to work!”
I can’t stand these lists. I think they’re dangerous, because the average American’s dismal financial state has little to do with coffee, name brands, or lunch. The people writing these articles mean well. But they’re the equivalent of telling a drowning man how to dry his clothes — advice that seems helpful but misses the bigger problem.
Most workers reading this article earn enough money to be saving a lot of it. If you can’t, it’s likely because the gap between reality and your ego is larger than it should be. And if you dig into that gap, I think you’ll find just three things:
• your house
• your car
• your education
If you want to actually save money, start there.
The average new American home now has more bathrooms than occupants. Nearly half have four or more bedrooms, up from 18% in 1983. While the median household’s inflation-adjusted income has been stagnant for decades, the median new home’s
Saving more money doesn’t necessarily mean giving up restaurant meals for good or never buying a new outfit again. In fact, there are plenty of ways to save money without making too many sacrifices. The following eight ideas might take a bit of extra effort, but they also have the potential to pay off, right into your bank account.
1. Get healthy. For people who struggle to stay fit, eating healthy and staying in shape is easier said than done. But for those who are in good shape, you can save a lot of money on life insurance and individual health insurance plans. And as an added bonus, you’ll feel better and have more energy. You don’t have to join a pricey gym, either: You can take up walking or jogging, or download a free app that helps walk you through different exercise programs.
2. Rethink auto insurance. Every year, re-examine your auto insurance policy for savings opportunities. For example, consider raising your deductible, which lowers premiums. For older vehicles, evaluate whether you really need collision coverage, which covers damage to your car when your car hits or is hit by another vehicle or object. And make it a habit to compare auto
Millions of Americans waste money without even realizing it. From spending money on food that ends up in the trash bin to collecting interest on credit cards and loans — Americans waste money every day in ways that are little and big. Consider these statistics: Americans throw out the equivalent of $165 billion in wasted food each year, according to the National Resources Defense Council. An average American will pay over $600,000 in interest over their lifetime, data from the website Credit Loan shows. And American households hold an average of $300 in unused gift cards, according to the website Gift Card Granny.
Don’t let your hard-earned money go to waste. Follow these tips to plug your money leaks.
1. Credit card interest
Credit card annual percentage rate’s range from 7.99 percent all the way up to 30.25 percent. How much are you paying in credit card interest each month? In an upsetting trend, credit card interest rates were higher the first three months of this year compared to last.
How to stop wasting: Unfortunately, there isn’t a quick fix to paying off credit card debt. If you’ve got several cards, accelerate payments for the card with the highest interest rate first. You might
There is a lot to like about credit card rewards. Cardholders can earn valuable points, miles and cash back just for spending money on things that they would normally buy.
But at the same time, the temptation of rewards can lead cardholders to make unwise decisions that will ultimately cost them more money than any rewards earned were worth. Here are six situations when chasing credit card rewards can lead you down a bad path.
1. Going Into Debt
The most valuable rewards offered might be worth about 5% of the amount spent (here are some of the best rewards credit cards out there). But even when you can earn those rate of returns, you are wasting 95% of your money if the purchases you make are wasteful. This might seem clear, but card issuers know that some of their customers have rewards on their mind when they use their credit card, and this can entice people to overspend, either consciously or not. Overspending and getting yourself into debt can have a significant impact on your credit scores. You can see how your debt is impacting your credit scores for free on Credit.com.
2. Overspending to Earn a Sign-Up Bonus
Credit card sign-up
Ask a foreigner to describe the archetypal American and you’d most likely hear a none too flattering depiction of Americans as materialistic, arrogant, wasteful, and well-known for being an overtly consumer society. As Americans, we have the right to object to these insulting descriptions, and we use that right, as we should! However, the truth is that we (yes, even you) do end up leaving a surprising amount of money on the table in a variety of ways.
Bank fees, indulging in conveniences, and a whole slew of small behaviors we partake of as a society involve wasteful money habits.
Making subtle changes in our lifestyle can greatly diminish the amount of money we waste, and can result in having more financial security down the road.
Check out the following and see if any of the figures surprise you! Make it a challenge, and pick at least one item to cut back on.
20. Credit card interest
Currently, the average credit card debt per U.S. household is $15,270, and in total, Americans owe $856.9 billion in credit card debt, based on American Household Credit Card Debt Statistics as of January 2014.
The 39 percent of Americans who carry credit card debt from month to month often
Wasting money is incredibly easy – unfortunately! Yet, with a little thought into your spending and saving practices, you can very easily curtail over-spending and start making your money go further rather than frittering it away. When you’re in the frame of mind to stop wasting your money, give these steps a try.
Sit down for an afternoon and do a little financial research.
Although this isn’t on the list of most people’s top priorities, it should be because this is where you can stop wasting a lot of money. The things to examine include your banking arrangements, your retirement fund, and your insurance rates:
- Find out about your retirement funds. Are you even set up for such a fund? It can have several advantages over a regular savings or investment account. And if you have one, have you got the best deal possible? Look for retirement funds that your employer matches. Even if you’re not employed, you may still be able to take advantage of such accounts; ask your financial adviser or do some research.
- Review your other investments beyond your retirement funds, if you have them. Are they a sensible mix of kinds of investments for you? Are the
1. Eliminate Your Debt
If you’re trying to save money through budgeting but still carrying a large debt burden, start with the debt. Not convinced? Add up how much you spend servicing your debt each month, and you’ll quickly see. Once you’re free from paying interest on your debt, that money can easily be put into savings. A personal line of credit is just one option for consolidating debt so you can better pay it off.
2. Set Savings Goals
One of the best ways to save money is by visualizing what you are saving for. If you need motivation, set saving targets along with a timeline to make it easier to save. Want to buy a house in three years with a 20 percent down payment? Now you have a target and know what you will need to save each month to achieve your goal. Use Regions savings calculators to make your goal!
3. Pay Yourself First
Set up an auto debit from your checking account to your savings account each payday. Whether it’s $50 every two weeks or $500, don’t cheat yourself out of a healthy long-term savings plan.
4. Stop Smoking
No, it’s certainly not easy to quit, but if you smoke a pack