Car Loans – Otago Rally http://otagorally.net/ Wed, 24 Nov 2021 02:30:50 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://otagorally.net/wp-content/uploads/2021/06/icon-1-150x150.png Car Loans – Otago Rally http://otagorally.net/ 32 32 SILVER CLINIC | I am unemployed and cannot afford my house or my car. What should I do with my debt? https://otagorally.net/silver-clinic-i-am-unemployed-and-cannot-afford-my-house-or-my-car-what-should-i-do-with-my-debt/ Wed, 24 Nov 2021 02:30:50 +0000 https://otagorally.net/silver-clinic-i-am-unemployed-and-cannot-afford-my-house-or-my-car-what-should-i-do-with-my-debt/

Forfeiture requires an application to the High Court (which involves hiring the services of legal professionals), and essentially means that anything the consumer owns that is of value would be sold to pay off existing debt.

Krisanapong detraphiphat / Getty

A Fin24 reader who has been unemployed during the Covid-19 pandemic is struggling to repay his debt. Turning to an expert, he wonders what his next step should be.

He writes:

Unfortunately, the continued but varied lockdown levels hit me very hard. I have been unemployed for most of the past two years, only entitled to an R350 grant. I have the following debt to repay.

Mortgage loan

I have made sure to pay this off every month since I took the three month vacation period during the pandemic.

Car loan

At the end of September 2021, it was the first time that I could not pay my car loan. I contacted the bank, but they said they couldn’t help me. I have been paying my car since 2016, and this will be my first missed payment. I offered a smaller amount, however, that the vendor disagreed with.

Retail accounts

I could only offer R100 this month, which I paid for.

Retailers are not happy with this.

2 x other loans

I didn’t pay them for a few months after the first lockdown.

Both have insurance attached to them. These insurance companies gave me the tour with no communication to come. But lawyers contact me frequently.

2 x credit cards

I set up payment terms and paid for them every month.

I don’t know if I will be able to pay them at the end of October 2021.

What do I do? Should I be kidnapped? But then what happens with my house and my car?

Benay Sager, COO at DebtBusters, respond :

In this case, the consumer is facing financial difficulties, and unfortunately it is the case for many consumers in South Africa since the blockages started in 2020. This consumer seems to have a good understanding of his debt situation and wants to repay. their debt, both of which are great places to start. When there is intent, there are usually a few options available.

Generally, the range of debt management solutions available to the consumer depends on the following factors:

  • Debt size (i.e. how much money is owed)
  • The composition of the debt (i.e. home loan, personal loan, credit card or a combination of these)
  • Consumer affordability (i.e. how much the consumer can afford to repay for debt repayment)
  • Consumer assets (what the consumer owns that can be sold to pay off unpaid debt)

The combination of these factors determines the best options, from debt consolidation to sequestration. Usually, debt counseling is a great place to start for consumers with a source of income, as debt counseling works on the premise that consumers pay back what they can afford.

Having said that, given that the consumer has indicated that their income is limited, overall we believe that the consumer would have three indicative options:

1. Sell their vehicle to pay off some of the debt. This option would only work if the current value of the vehicle is greater than the unpaid amount owed, thus causing excess money for the consumer if they sell the car. It would be best if the consumer could have the vehicle appraised first, so that they can determine if it is a genuine option.

2. Apply for escrow. Forfeiture requires an application to the High Court (which involves hiring the services of legal professionals), and essentially means that anything the consumer owns that is of value would be sold to pay off existing debt. This is a pretty extreme solution for many consumers, but if it is successful, it allows the consumer to start from scratch.

3. Work with each credit provider to restructure debt. It can be intimidating when a consumer does it themselves, especially in this case, as there are at least eight accounts involved (maybe more). The best course of action is to bring in a debt counselor to see what options are available to restructure existing debt.

The first two options can be intimidating and may not lead to the best outcome for the consumer, especially if they have family or dependents. Therefore, we recommend that the consumer contact a reputable debt counselor to explore option three – this is particularly relevant as the consumer has implied that they have paid off their debt (even in the absence of their previous income levels. ), so this is an option that should be explored in our opinion.

Questions can be edited for brevity and clarity.

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How To Get A Car Loan – A Quick Guide https://otagorally.net/how-to-get-a-car-loan-a-quick-guide/ Sat, 20 Nov 2021 05:11:10 +0000 https://otagorally.net/how-to-get-a-car-loan-a-quick-guide/

Today a car is a necessity. It is necessary to get to work or, in some cases, to get to work. A vehicle is also a necessity for people to get to groceries, doctor’s appointments, and wherever else they need to go. In some areas it is not possible to walk to these places.

That’s why it’s important that everyone who needs a car has one. Unfortunately, having the funds to buy a car can be difficult. Fortunately, there are many options available to help people get the financing they need to buy a new or used car. This financing option is called a car loan, and there are a variety of types that can suit almost anyone’s financial situation.

What is a car loan and how does it work?

An auto loan is exactly what the term says: it is a loan to help with the purchase of a new or used vehicle. a automatic loan is usually an unsecured installment loan that can only be used to purchase a vehicle from an authorized dealership or from an individual, depending on the loan terms and the financial institution.

When you work with a reputable lender, a car loan is pretty straightforward. The loan is an installment loan, but for a larger amount and for a longer term than other installment loans. Although an installment loan is considered an unsecured loan, the purchased car serves as collateral. This secures the loan and allows the lender to repossess the vehicle if payments are not made.

When a car loan is received, it corresponds to the amount of the purchase price of the vehicle with a fixed amount of interest added to the total. This total is then divided into practical and equal monthly payments. This makes it easy for individuals to repay the loan as they have the same amount owed each month.

When obtaining financing for a vehicle, there are several options available to you. Some offer better interest rates or incentives, and others work better for people with less than perfect credit scores.

Concession financing

Many dealerships offer financing through them. This can make it easier for individuals to buy and finance their vehicles in one place. New and used car dealers can offer attractive programs for their customers. These may include:

  • Buy here, pay here. This type of financing is done through the concession itself. Often times, these are used car facilities that provide an easy payment plan for the vehicle buyer. Many offer payments that can be easily paid at the dealership.
  • Financing of the concession. Some dealerships offer financing directly from their business. These are similar to traditional bank loans but are provided by the concessionaire itself. These are common at dealerships that offer new vehicles.
  • Indirect funding. Some dealers offer indirect financing. This is where they work directly with various banks and other financial institutions to offer a range of financing options to their clients. Often times, the dealer takes advantage of these types of loans and does not always offer the best deal.
  • Special programs. Some dealerships offer a variety of incentive programs for their vehicles. These incentive programs can be manufacturer sponsored offers to attract customers to specific car brands. These may offer lower interest rates or cash back incentives. However, these can often require a good credit rating.

Direct loan

Instead of going through a dealership, many consumers can apply for a direct loan for their vehicles. Direct loan is made directly through the bank or finance institution for the purpose of purchasing a vehicle. Often, individuals can get pre-approved for a loan and use it when purchasing a vehicle. Direct credit institutions include:

  • Traditional banks. Traditional banks offer many advantages for granting auto loans. They can offer loans to those whose credit is not perfect. They can even offer a variety of financing options. The downside of a traditional bank is that it strives to maintain high profits for its shareholders. This means that the interest rates may be higher than other financing options. For those with a lower credit score, the interest can be considerably higher. They can even add fees and other costs to the loan.
  • Credit unions. These institutions may be able to offer loans at much lower interest rates and down payments for their clients. This is because they are less concerned with the profits for the shareholders. The downside of a credit union is that people have to be members to get financing. In addition, credit unions work with smaller pools of capital for loans. This makes them more careful with their funding. Many credit unions will need near perfect credit to take advantage of their offers.
  • Signature Loans. There are other financial institutions that offer auto financing. These places will offer a variety of loan options for those with lower or even poor credit. They often have a straightforward application process that can be approved very quickly with convenient reimbursement options.

The downside of these types of institutions is their funding limits. Often these are small installment loans offered to those with less than perfect credit. This means that the only option may be a used vehicle.

Before applying for a loan

Before applying for a loan, individuals are advised to check their finances and credit rating. These two elements can play a major role in the possibility of obtaining a loan for a new or used vehicle. It can also give individuals a better idea of ​​what they can afford.

There are three credit bureaus nationwide that keep track of the credit reports for each individual. As for credit scores, they are usually not provided by credit bureaus, but can be provided for free from a variety of locations, such as free credit rating sites, credit card companies, and even institutions. financial.

It is also important to look at finances to make sure that there is enough money to cover all the necessities and maintenance of the vehicle before determining how much it is possible to pay for a car.

Figuring out how much can be spent on a car payment before you take out a loan can ensure those payments don’t fall behind.

Once a loan is obtained from one of these institutions, a vehicle can be purchased. It is important to register and insure the vehicle in accordance with all relevant state and local laws. Regular maintenance is also a good idea to make sure the car lasts and doesn’t break down before the loan is paid off.







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Austinians Pay More Bills Than Anyone In Texas, Study Finds https://otagorally.net/austinians-pay-more-bills-than-anyone-in-texas-study-finds/ Wed, 17 Nov 2021 16:01:06 +0000 https://otagorally.net/austinians-pay-more-bills-than-anyone-in-texas-study-finds/

AUSTIN (KXAN) – According to a recent study, Austinites pay more for household bills than anyone in Texas.

The study, conducted by online payment company Doxo, said residents of Austin pay an average of $ 2,300 per month on “the 10 most common household bills.” The study found that the average Texan pays $ 1,888 per month on these bills.

What Texans pay for bills is the national average. Doxo broke it down with this graphic:

Invoice category Texas average monthly bill National average monthly bill
Mortgage $ 1,412 $ 1,279
To rent $ 1,063 $ 1,062
Automatic loan $ 462 $ 411
Utilities $ 255 $ 316
Car insurance $ 150 $ 185
Cable and Internet $ 115 $ 115
Health insurance $ 93 $ 113
Cellphone $ 116 $ 102
Alarm & Security $ 96 $ 87
Life insurance $ 74 $ 88
Total $1,888 $ 1,889

In the Austin area, which also includes Round Rock and Georgetown for the study, that’s another story. It shouldn’t come as a shock to anyone that mortgage and rent payments are higher in Austin than anywhere else in Texas on average, but there are a few average bills that are lower in Austin.

Invoice category Texas average monthly bill Austin Average Monthly Bill
Mortgage $ 1,412 $ 1,903
To rent $ 1,063 $ 1,279
Automatic loan $ 462 $ 457
Utilities $ 255 $ 170
Car insurance $ 150 $ 173
Cable and Internet $ 115 $ 125
Health insurance $ 93 $ 160
Cellphone $ 116 $ 96
Alarm & Security $ 96 $ 108
Life insurance $ 74 $ 86

The Doxo study indicated that Austin’s average bills are 21.7% higher than the national average, and in addition to being the most expensive in Texas, the region ranks 43rd out of 914 national areas included in the ‘study. Texans typically pay less for utilities than the national average, as well as out-of-pocket health and life insurance payments.

Bills paid by area residents represent 35.9% of average household income in the area, according to the study. In comparison, residents of the San Antonio area pay an average of $ 1,875 and the Killeen / Temple area pays $ 1,759.

Other major metropolitan areas like Dallas-Fort Worth and Houston feature prominently in the study’s Texas list, but none of them come in at No. 2 behind Austin as one would expect. That honor belongs to Brenham, where residents pay more for auto loans, $ 651 to $ 462, health insurance, $ 435 to $ 93, cable and internet, $ 176 to $ 115, and cell phone bills. , $ 282 to $ 116.

Here are the most expensive areas in Texas for household bills, according to the study:

Rank
(1-10 of 70)
City Monthly expenses billed per household * Percentage of household income used for bills Percentage +/- of national average ($ 1,889)
1 Austin, Round Rock, Georgetown area $ 2,300 35.9% + 21.7%
2 Brenham $ 2,182 45.9% + 15.5%
3 Dallas, Fort Worth, Arlington area $ 2,103 35.4% + 11.3%
4 Houston, the Woodlands, the Sugar Land area $ 2,080 35.4% + 10.1%
5 Midland $ 2,037 30.3% + 7.9%
6 Lubbock $ 1,999 46.4% + 5.8%
7 College Station, Bryan area $ 1,890 45.1% + 0.0%
8 San Antonio, New Braunfels area $ 1,875 36.9% -0.7%
9 Odessa $ 1,859 37.0% -1.6%
ten Amarillo $ 1,853 39.2% -1.9%

The cheapest place to pay bills in Texas, according to the study, is the town of Zapata in the Rio Grande Valley, where average bills are $ 1,249.

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Can You Lock In Interest Rates On Auto Loans? https://otagorally.net/can-you-lock-in-interest-rates-on-auto-loans/ Mon, 15 Nov 2021 21:07:36 +0000 https://otagorally.net/can-you-lock-in-interest-rates-on-auto-loans/

Some manufacturers offer to lock in rates on custom orders, so you can take advantage of current deals, even if the car isn’t on the lot yet. Since many auto manufacturers are experiencing inventory shortages due to supply chain issues, this can be a good opportunity to save money on a new car if you qualify.

Rate Lockout Programs

Rate foreclosure programs typically come from car manufacturers when you buy a new vehicle that dealerships don’t have in stock. For example, eligible borrowers may be able to lock in a low APR rate, such as 0.9% or 1.9% on a custom-ordered car financed by a captive lender. Currently, automakers like Ford are offering frozen interest rates on certain vehicles, while luxury consumers can take advantage of this benefit with BMW.

To qualify for these programs, you probably need to have good credit. Most automakers that offer frozen interest rates require you to take delivery of the vehicle within a certain timeframe, typically 60 to 90 days. However, since current models take longer to enter showrooms and consumers, some borrowers may wonder if their frozen rates will be maintained.

In most cases the answer is yes, a rate lock should continue to remain in effect if the delay in delivering the vehicle is due to circumstances beyond your control. Some automakers that offer rate blocking may give qualifying consumers the choice of the blocked rate offer from the time they order or a future offer available at the time of delivery. However, these scenarios may not always be the case, so be sure to check with your dealer if your order is delayed.

Can I Qualify With Bad Credit?

If you’re a borrower with bad credit, getting into a rate foreclosure program or even qualifying to purchase a new vehicle can be difficult, but it’s not impossible. If you are having trouble qualifying for a car loan, remember that you will likely need more documents to get a loan than someone with better credit.

If you’re looking for a dealership who can approve you for a car loan but aren’t sure where to turn, Auto Express Credit wants to help. We have developed a nationwide network of special finance dealers who can help you in many difficult situations. Simply fill out our quick and free auto loan application form. There is never any obligation, so get started right away!

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How this 30-year-old paid off $ 100,000 in debt in 5 years https://otagorally.net/how-this-30-year-old-paid-off-100000-in-debt-in-5-years/ https://otagorally.net/how-this-30-year-old-paid-off-100000-in-debt-in-5-years/#respond Tue, 09 Nov 2021 17:28:12 +0000 https://otagorally.net/how-this-30-year-old-paid-off-100000-in-debt-in-5-years/

Select’s editorial team works independently to review financial products and write articles that our readers will find useful. We may receive a commission when you click on product links from our affiliate partners.

By the time Alaina Curry graduated from college in 2009, she had accumulated over $ 80,000 in student loans. While she appeared to have been successful to friends and family – taking a high-paying public relations job in Las Vegas – her debt rose to over $ 86,000 in the five years following her graduation in reason for using their credit card. In 2016, overwhelmed by her growing debt, she broke down in front of her friend and admitted to missing part of her monthly student loan payments.

This moment motivated Curry to come up with a plan to pay off his debt. At 25, she decided to be debt free by the age of 30. She has researched various resources to learn how to pay off debt, reading Dave Ramsey’s book “The Total Money Makeover”, watching YouTube channels. As State of mind of minorities and Graham Stephan, and listen to podcasts from Patrice washington and The budgetist.

Curry decided to use the snowball method to pay off his debt, first tackling his smallest credit card bill, which was $ 750. With the snowball method, you start by paying off the smallest amount of debt, so that you can earn a quick payoff before you tackle your larger balances. The idea is that a quick win will help build momentum.

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Curry also admitted that paying off his debt in full would require him to make sacrifices. Her lease ending in September 2016, she decided to move in with her aunt and uncle to Las Vegas to save money. She began to treat her debt repayments like a rent payment: every month, she obligated herself to pay at least $ 900 for her student loan debt.

She also worked on building an emergency fund with the additional income she earned from her side activities. She held retail positions at Target, then Michael Kors, and also used online services like Upwork for freelance and editing. She even started her own photography business. In total, she earned $ 12,000 from her ancillary activities.

Curry lived with his aunt and uncle for three years and was able to pay off all of his credit card debt and two private student loans worth around $ 37,000. At the start of 2019, she felt ready to move on her own.

Manage surprise expenses

Yet in May 2019, shortly after leaving her uncle and aunt’s home, disaster struck. Curry had a car accident that totaled his car. Although she was fortunate enough to get by without injury, she had to buy a used car, adding another $ 14,000 to her debt. Just two months after that, she was in a four-car pile-up. Although this accident did not require her to buy another car, she had to prepay for the repairs. She was not reimbursed for these expenses until she settled down with the auto insurance company a year later.

Curry couldn’t take a break. In February 2020, she got a new job in public relations, but barely a month later she was fired due to the Covid-19 pandemic. Luckily, Curry had set up an emergency fund and paid off nearly $ 50,000 of the $ 101,000 in debt she had accumulated from her student loans, credit cards, and auto accident expenses.

“When they told me I had been fired, it was obviously a scary feeling,” says Curry. “But I can’t imagine how I would have felt if I had been up to the head in the bills like I had been in 2016.”

Become debt free

In September 2020, Curry started a new job in Dallas, and she decided to refinance most of the remaining student loan – a Navient loan worth $ 38,000 – with SoFi to get a lower interest rate. After recalling her monthly debt repayments when she was unemployed, Curry became aggressive about her debt, making monthly payments of $ 3,000 for her student loans.

On October 31, 2021, Curry wrote a Post on LinkedIn about getting off debt which went viral on the site, receiving nearly 25,000 reactions and over 1,500 comments. When asked what advice she would give to others struggling to pay off massive debts, Curry stresses the importance of having an end goal. For Curry, that meant losing his financial freedom and not having to constantly worry about money.

She says it’s important to stay motivated on your debt repayment journey. Curry regularly watched videos and listened to podcasts about other people’s debt repayment stories, which prompted her to follow hers.

Most importantly, Curry stresses the importance of being flexible and kind to yourself during the debt repayment process. When she had to face two car accidents and lose her job within 12 months, she was able to get back on track as she accepted that certain events were beyond her control and she was grateful for have an emergency fund that she could fall back on.

Catch up on Select’s in-depth coverage of personal finances, technology and tools, well-being and more, and follow us on Facebook, Instagram and Twitter to stay up to date.

Editorial note: Any opinions, analysis, criticism or recommendations expressed in this article are the sole responsibility of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.


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Chicago man files federal lawsuit against U.S. bank citing racism and red line – CBS Chicago https://otagorally.net/chicago-man-files-federal-lawsuit-against-u-s-bank-citing-racism-and-red-line-cbs-chicago/ https://otagorally.net/chicago-man-files-federal-lawsuit-against-u-s-bank-citing-racism-and-red-line-cbs-chicago/#respond Sat, 06 Nov 2021 03:20:00 +0000 https://otagorally.net/chicago-man-files-federal-lawsuit-against-u-s-bank-citing-racism-and-red-line-cbs-chicago/

CHICAGO (CBS) – Only the 2:

Charges of racism and red line at one of the largest banks in the country. A former employee claims that the US bank has often refused to grant car loans to minorities.

READ MORE: Avanta Ware arrested in connection with the murder of Travell Miller who protected his daughter from gunfire

CBS 2 political investigator Dana Kozlov reports that the charges were laid in a federal civil lawsuit filed on Friday.

John Span, 55, spent 24 years at the US Bank, his last job as an auto loan underwriter. He said the racist comments from his colleagues started years ago. One of them used the n word and claims that a manager stopped by his office every Friday with this comment:

“Don’t beat your wife. And don’t go to jail.

Dana Kozlov: And you were the only black underwriter?

John Span: The only black underwriter. Period.

Span said he voiced his concerns to supervisors to no avail. Then, when a new manager took over in 2018, Span said he had become a target. Because of his age and because he’s black.

READ MORE: 2 investigators: drivers caught in parking scam also get city tickets

“I was set up,” Span said.

Installed and licensed a year ago. Now Span is suing US Bank. But his claims go beyond discrimination. The federal lawsuit accuses Span’s bank manager of causing it to fail by creating and giving it car dealership territory encompassing the south side and suburbs of Chicago, mostly minority communities.

“They institutionally created a system and allowed the leadership of this group to create a system that allowed other underwriters in the Chicagoland area and across the country to avoid approving minority loans,” Span’s lawyer Haskell Garfinkel said.

This is a practice known as redlining. Span said co-workers have also told him that they often refuse to approve loans because of an applicant’s last name, despite having a good credit rating.

“If the name sounded Hispanic or the name sounded Muslim, they would either refuse this deal or not even look at this deal,” Span said.

“Until you get into the details of the trial, it will be almost impossible to quantify its true scale,” Garfinkel said.

In October, US Attorney General Merrick Garland announced new measures to tackle redlining. A spokesperson for the US bank said it takes the accusations very seriously and does not tolerate any type of discrimination. But the bank has not seen the lawsuit and cannot comment further.

NO MORE NEWS: Four-year-old shot dead in south Chicago

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Opinion: what the Fed cut means for your wallet https://otagorally.net/opinion-what-the-fed-cut-means-for-your-wallet/ https://otagorally.net/opinion-what-the-fed-cut-means-for-your-wallet/#respond Wed, 03 Nov 2021 22:41:26 +0000 https://otagorally.net/opinion-what-the-fed-cut-means-for-your-wallet/

On November 3, 2021, the Federal Reserve announced that it was ending the bond buying program it had put in place since March 2020. The Fed’s Policy Development Committee said it would immediately be “tapered” asset purchases of $ 15 billion each month. Central bank had bought $ 120 billion per month Treasury bonds and mortgage-backed securities to combat the effects of the COVID-19 pandemic and support the U.S. economy.

We asked the economist at Clark University Edouard Wemy to explain the Fed’s tapering policy and why it matters.

1. What is unraveling?

Declining means the unwinding policy for massive purchases of TMUBMUSD10Y Treasury bills,
1.594%
and mortgage-backed securities adopted by the Fed since the COVID-19 outbreak. Since March 2020, the Fed has purchased more than $ 4 trillion in Treasures and other titles in what is commonly referred to as quantitative easing.

The Fed said it would cut treasury bond purchases by $ 10 billion per month from $ 80 billion in October and $ 5 billion from $ 40 billion in mortgage-backed securities. This means, for example, that the Fed will buy $ 70 billion in treasury bills in November and $ 60 billion in October. While the Fed has said it may change the pace of the pullout, if it continues at that pace, it will stop buying new assets by mid-2022.

2. What is quantitative easing?

Quantitative easing is an unconventional monetary policy tool that involves the large-scale purchase of various types of assets, including treasury bills, corporate bonds, and other securities.

The Fed first adopted this policy during the 2008 financial crisis after that lowered its benchmark interest rate—Its main policy tool to affect short-term borrowing costs in the market and therefore the economy as a whole — to virtually zero.

But with its benchmark rate at zero, while there was no inflation and the economy still suffered, the Fed was no longer able to use its main policy lever to support workers and stimulate economic growth by making borrowing less expensive. So the Fed turned to quantitative easing as a way to continue to provide credit to the economy and further reduce borrowing costs for businesses and consumers. By buying assets, their price goes up, which lowers their yield or interest rate.

3. Why is the Fed declining now?

Growing concerns that rising inflation could hurt the economy are probably a big part of what prompted the Fed to change its policy.

Inflation is the rate of change in the price of goods and services. The cconsumer price index, which includes several categories of everyday items that a typical consumer can purchase, is the most commonly reported measure of inflation in the media. By October 2021, it was up 5.4% from the previous year.

However, the Fed generally prefers the core ppersonal consumption expenditure measure of inflation. This other measure, generally lower than the CPI, climbed slightly less, at around 4.4% over the same period.

But both measurements were greater than the The Fed’s target of 2% annual inflation in recent months. Many observers have taken this upward trend as an indication that the Fed may even have to raise interest rates soon, which could lead to slower economic growth.

In its Nov. 3 statement, the Fed cited signs of strengthening the US economy, “immunization progress” and high inflation as key considerations as it began to pull back a bit from its purchases of ‘assets. But the Fed also stressed that it intends to maintain an “accommodating” stance on monetary policy – meaning it will maintain its support in terms of low interest rates and other measures – until it achieves maximum employment and price stability.

The recent increase in consumer prices may be due to transient factors linked to the pandemic, such as the rising cost of used cars, increased consumer demand and supply chain issues. That is how the Fed sees it, for now, and it will be monitoring inflation closely over the next few months.

4. Could this mean a hike in interest rates anytime soon?

Consumers and businesses are already starting to see slightly higher rates on mortgages, business loans and other types of borrowing.

At a time, investors are waiting the Fed to raise your own benchmark interest rate earlier than expected. Six weeks ago, the Fed also changed its forecast for interest rate hikes from 2022 to 2022.

5. How will this affect consumers?

Consumers have benefited from the lowest interest rate for most of the past 13 years, helping to make it cheaper to buy cars and homes and start businesses.

Higher interest rates, whether because of the Fed buying fewer assets or simply because the market anticipates higher rates, would of course increase the cost of mortgage and auto borrowing. which in turn can slow down economic activity.

At the same time, a slight increase in tariffs can have other positive effects for some consumers. For example, it could cool down the housing market, making it easier for some people to buy a home.

Either way, it looks like the November 3 policy change may signal that the era of cheap money is finally coming to an end, but not for a while, so make the most of it. it lasts.

Edouard Wemy is Assistant Professor of Economics at Clark University.

This commentary was originally posted by The Conversation—Fed cuts support for bond markets and economy: 5 questions answered on what it means

Full Federal Reserve coverage

Fed slows bond purchases, says factors driving inflation should be transient

Fed still thinks spike in US inflation won’t last, but it’s now hedging its bets

Why the Fed’s long-awaited tapering announcement doesn’t shake the stock market

Long-term Treasury yields hit highest levels in more than a week after Federal Reserve policy update

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Americans have billions of dollars in auto debt and may be at a tipping point https://otagorally.net/americans-have-billions-of-dollars-in-auto-debt-and-may-be-at-a-tipping-point/ https://otagorally.net/americans-have-billions-of-dollars-in-auto-debt-and-may-be-at-a-tipping-point/#respond Tue, 02 Nov 2021 13:39:00 +0000 https://otagorally.net/americans-have-billions-of-dollars-in-auto-debt-and-may-be-at-a-tipping-point/ There are more reasons to be pessimistic about the state of the auto industry than most people would like to admit. Along with chip shortages and, well, everything is lacking across the board, there is another lingering problem in the shadows that could be even more difficult to fix than the chip shortage. Americans currently have more auto debt to their name than almost any other expense, to the tune of over $ 1,000 billion.

The report came from Consumer reports last week, and the prognosis was anything but optimistic. In an auto market where a loan with interest rates below 10% is considered broadly acceptable, some borrowers were paying up to 25% APR on their auto loans.

Consumer reports have found that a disproportionate number of people in less than ideal car loan situations are paying up to 10% of their income on car loans. It’s money people could use to pay rent, buy food, or order delicious model cars for the new Jetta. It is money that is safe to say, is used recklessly.

Disturbingly, many of the same qualities that buyers now accept as the status quo in auto loans also emerged during the subprime mortgage crisis of 15 years ago. With only 4% of the total loans dispersed, checked to make sure the borrower can actually repay them.

The report confirmed that at least $ 1.37 trillion in debt is accumulated in hundreds of thousands of auto loans, more than the GDP of some highly developed countries. With so many Americans on the verge of default with car payments, rent increases, outrageous student loan bills, and other expenses, it’s putting enormous pressure on working-class Americans.

It’s a phenomenon that threatens to snowball into yet another recession that so many people have worked so hard to get out of, thanks to an unmanageable public health crisis. Only time will tell how long Americans can keep their funded cars or witness a massive impoundment crisis like we’ve never seen.

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SberBank grants more loans to 9M21 than to 12M20 https://otagorally.net/sberbank-grants-more-loans-to-9m21-than-to-12m20/ https://otagorally.net/sberbank-grants-more-loans-to-9m21-than-to-12m20/#respond Tue, 02 Nov 2021 09:19:14 +0000 https://otagorally.net/sberbank-grants-more-loans-to-9m21-than-to-12m20/

During 9M21, SberBank strengthened its leadership in the consumer credit market in Russia, granting more than 2.1 billion rubles of general purpose loans (excluding mortgages and car loans), up 42% year-on-year and more than in 12M20.

A record high was recorded in July-September when retail customers obtained nearly 800 billion rubles in personal loans, up 30% year-on-year. Since the start of the year, this loan portfolio has added 530 billion rubles (+ 19%) to reach 3.2 billion rubles. The bank’s personal loan portfolio grew 18.5 percent to 11 billion rubles on 9M.

The bank believes this strong performance is due to the revival in demand (customers are pursuing plans they had to postpone due to the coronavirus pandemic) and competitive offers from SberBank.

Customers are increasingly choosing SberBank personal loans to pursue their life plans, with one in two customers borrowing from SberBank. From January 1 to October 1, 2021, the bank’s market share in terms of personal loan portfolio increased 0.6 pp to approach an all-time high of 36.5%.

In addition, customers strongly appreciated the quality of service on remote channels, which is particularly important in the context of barrier actions. Three in four customers prefer to apply for a loan through the SberBank Online mobile app, which has 71 million monthly users. As a result, the entire loan process – from filling out an application to crediting the money to the account – takes a few minutes and requires an in-person visit to the bank.

In May, the bank marketed Money Before Salary, a unique service allowing its salaried clients to contract small loans (up to half the salary) via SberBank Online for a month at the price of a classic personal loan. The demand for the service has exceeded all expectations, with over half a million customers taking advantage.

SberBank is also working on its client services for borrowers. This year, it launched a free service that allows borrowers to defer their scheduled loan payments by one month without damaging credit history.

Point of sale loans have increased significantly. The Buy with Sber loan portfolio more than tripled to 9 million and reached 11.3 billion rubles, and the total volume of loans amounted to 16.7 billion rubles since the beginning of the year, compared to 3.5 billion rubles over the same period in 2020. Year – to date, the share of the company’s loans in the market has tripled to 9.06% in September 2021. The partner base has grown to 25,500 partners.

The gradual development of auto credit also deserves to be mentioned. Cetelem Bank, a company of the Sber group, lent 106.8 billion rubles to 10M2021, which is more than in 2020 and the largest volume of loans on record that a bank in Russia has issued in a calendar year. Almost 100,000 Russians took advantage of Sber’s auto loans in 2021. The group’s auto loan portfolio has exceeded 152 billion rubles, an increase of more than 16% since the start of the year. It is the largest auto loan portfolio in Russia.

The company’s strong leadership in the auto loan market is due to stable partnerships with 20 leading auto brands, more than 3,000 dealerships, advancement in online sales channels and the wider range of digital loan products for the market. used car market. You can apply for a car loan in SberBank Online and don’t have to go to the bank in person.

Disclaimer

Sberbank of Russia published this content on November 02, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on 02 November 2021 09:18:07 UTC.

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DBS Introduces the First LiveBetter Digital Sustainability Platform to Engage Customers to Live Eco-Friendly Lifestyles https://otagorally.net/dbs-introduces-the-first-livebetter-digital-sustainability-platform-to-engage-customers-to-live-eco-friendly-lifestyles/ https://otagorally.net/dbs-introduces-the-first-livebetter-digital-sustainability-platform-to-engage-customers-to-live-eco-friendly-lifestyles/#respond Mon, 01 Nov 2021 05:57:06 +0000 https://otagorally.net/dbs-introduces-the-first-livebetter-digital-sustainability-platform-to-engage-customers-to-live-eco-friendly-lifestyles/

Singapore, October 31, 2021 – As part of its drive to encourage eco-responsible living, DBS Bank has launched LiveBetter – a unique digital platform where users can easily access green advice, donate to causes green communities, as well as investing in funds focused on sustainable development. The platform, which is the first of its kind in the industry, is now available to all DBS / POSB customers in Singapore through the bank’s digibank app. By January 2022, LiveBetter will also have the industry’s first stand-alone carbon calculator, which automatically generates carbon footprint profiles and insights based on customer spending habits. The bank is also developing a function that will allow customers to purchase carbon credits to offset their carbon footprint.

LiveBetter – The first unique digital sustainability platform

According to Jeremy Soo, Head of Consumer Banking (Singapore) at DBS Bank, “Climate change affects us all, and we believe that everyone has a role to play in building a better world. To encourage customers to adopt sustainable lifestyles, we take care to offer green offers that are accessible, highly competitive and easy to adopt. This approach was confirmed by the findings of our recent DBS consumer sustainability survey.[1], where 73% of respondents indicated a willingness to change their lifestyle to live more sustainably only if it is convenient for them. By integrating LiveBetter into DBS digibank, our customers can now easily access ways to live green with just a few clicks. “

The results of the DBS Consumer Sustainability Survey, which was conducted in July 2021 among more than 1,000 Singapore residents aged 18 and over, showed that respondents were very aware of the environmental impact of their activities, 93% being aware that their activities contribute to carbon emissions and 86% being aware that their carbon footprint will have an impact on the world. However, many are unlikely to take action towards a sustainable lifestyle: 73% are willing to change their lifestyle to live more sustainably, but only if it suits them, while 31% are undecided as to whether they will reduce their carbon footprint. 33% also mentioned having difficulty finding the right channels to learn about sustainability.

How LiveBetter works

LiveBetter on DBS digibank aims to address these challenges by reducing barriers and consumer inertia towards a sustainable lifestyle. An industry first, the digital one-stop-shop platform provides simple and easy access to a range of sustainability-focused educational resources, services and offerings with the following features:

  • Give better: Featuring local environmental and sustainability organizations, clients can easily view sustainability-related causes that require funding and donate to them. The donation process takes less than five seconds from transferring funds to depositing the tax deduction, and 100% of funds raised go to organizations such as The Food Bank Singapore, World Wide Fund for Nature (WWF) and Mandai Nature Fund. , among others.
  • Better invest: Clients can learn more about sustainable investing and invest instantly in a selection of sustainability-themed funds.
  • Better know: Whether it is to learn more about climate change or to obtain eco-responsible advice, the platform offers small content to customers and shows them the relevant actions to take.
  • Carbon calculator (Coming January 2022): The industry’s first standalone carbon calculator – a calculator that automatically generates carbon footprint profiles and insights based on customer spending habits. The bank is also developing a complementary function that will allow customers to buy carbon credits to offset their carbon footprint.



Carbon calculator coming in January 2022

Please refer to Annex for more details on LiveBetter or visit https://www.dbs.com.sg/personal/livebetter.

DBS has also seen an encouraging reception of ‘DBS Green Solutions’, a suite of green retail offerings introduced this year, a sign of a growing adoption of sustainability-focused financial solutions:

  • Fund on the theme of sustainable development: Since January 2021, retail purchases of thematic funds on sustainable development (Ninety One Global Environment Fund and BNP Paribas Global Environment Fund) have been constantly increasing. As of September 30, 2021, fund purchases are almost three times higher than in January 2021. The one-year performance of these funds was also healthy, around 30%.[2].
  • DBS green car loan: Singapore’s first green car loan When introduced in February 2021, the loan offers an attractive rate of 1.68% (EIR 3.22%) per annum to all customers who purchase new electric and hybrid vehicles and opportunity. As of September 30, 2021, green auto loan volumes represented 10% of auto loan volumes, and total green auto loan volumes are at their highest level since the launch of the green loan. As more models of electric vehicles enter the market, green car loan volumes are expected to continue to increase.
  • Green Renovation Loan DBS: The loan has experienced exceptionally high subscription rates since its launch at the end of April. As of September 30, 2021, green loans account for around 85% of new DBS renovation loan bookings – with renovation loans approved at their highest level since January 2019. The bank expects loans to green renovations continue to dominate its home improvement loan portfolio. At 2.68% per annum, this is probably one of the lowest rates in the market today, compared to the average market renovation loan rate of around 4% per annum. Renovation checklist, jointly developed in partnership with the Singapore Green Building Council. This includes, among other things, energy-efficient lighting and systems and the use of renewable energy sources and certified ecological paints. About two-thirds of DBS customers who take out green renovation loans are HDB residents.

For more information on the “DBS Green Solutions” package, visit https://www.dbs.com.sg/personal/live-green-effortlessly.

DBS has advanced its sustainability agenda over the years. The bank has set targets for its operational carbon footprint to ensure net zero operational carbon by 2022. In 2017, DBS became the first Asian bank and the first Singaporean company to join the global initiative. RE100 renewable energy by committing to use 100% renewable energy for its Singapore. operations by 2030. Recently, DBS also supported the World Business Council for Sustainable Development’s (WBCSD) Vision 2050 program which sets out nine transformative pathways to improve lives, livelihoods and protect the planet by three decades. Finally, DBS recently became the first bank in Singapore to become a signatory to the UN-convened, industry-led Net-Zero Banking Alliance (NZBA).

[1]DBS Consumer Sustainability Survey, conducted in July 2021, among 1,000 Singapore residents aged 18 and over
[2] Ninety One Global Environment Fund 1-year return as of October 21, 2021: 33.21% (USD); 1-year performance of the BNP Paribas Global Environment Fund as of October 21, 2021: 29.5% (SGD Hedged)

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About DBS
DBS is a leading financial services group in Asia with a presence in 18 markets. Based and listed in Singapore, DBS is present in the three main areas of growth in Asia: Greater China, Southeast Asia and South Asia. The bank’s “AA-” and “Aa1” credit ratings are among the highest in the world.

Recognized for its global leadership, DBS has been named “The best bank in the world“by Euromoney,”World Bank of the Year“by the banker and”Best Bank in the World“by Global Finance. The bank is at the forefront of using digital technology to shape the future of banking, having been named” World’s Best Digital Bank “by Euromoney and the”The most innovative in digital banking“by The Banker. In addition, DBS received the”Safest Bank in Asia“awarded by Global Finance for 13 consecutive years from 2009 to 2021.

DBS offers a full range of banking services for individuals, SMEs and businesses. As a bank born and raised in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with its customers and making a positive impact on communities by supporting social enterprises, as it operates the Asian way. It also established a SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia.

With its extensive network of operations in Asia and its focus on engaging and empowering its people, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.

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