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Does 4.8m new US jobs in June mean a V-shaped recovery?



The Bureau of Labor Statistics released the June nonfarm payroll data on Thursday which showed 4.8 million Americans found jobs last month, dividing opinion among economists about how strong the US recovery will be.

The figures beat analysts’ estimates of 2.9 million jobs, and eased the unemployment rate down to 11.1% in June. It had spiked to 14.7% in April and in May Goldman Sachs predicted that the US unemployment rate would peak at 25%. In May, the economy added 2.5 million jobs. However, in March and April more than 22 million jobs were lost as employers cut payrolls during the height of the coronavirus shutdown.

“The market is pricing in more of a V-shape recovery. It’s certainly pricing in a V-shape recovery in terms of earnings, said Kate Moore, head of thematic strategy for BlackRock’s Global Allocation investment team. “The consensus is at about $163 [for S&P 500 earnings] for 2021, and we’re trading at 19 times that at current levels. So I think what the analyst and investment community need right now is confirmation from companies as they report second-quarter earnings, which are going to be abysmal, confirmation that they’ve modified their business models and they are thinking about an existing Covid, not a post-Covid, world.”

Nada Eissa, former deputy assistant secretary of the Treasury for economic policy had a word of caution. She said: “I don’t think the numbers are meaningless, but I do think that we’re not thinking about the fact that we have this resurgence in the virus, and the resurgence has two elements. One is the unforced errors by officials who basically opened without following the guidelines and have had now to pull back.”

Eissa added: “But we’ve also seen a resurgence in places that did do the hard things so restaurants were set to open for diners in New York City. That’s now on hold. And so I think that, looking forward, I don’t know that we’re going to be able to see the same types of job growth or continued job growth. I think it’s going to be very jagged.”

David Rosenberg, founder of Rosenberg Research said the US jobs market still has a lot of ground to recover.

Rosenberg said: “It’s still not clear to me as though today’s job number in and of itself gives you a V-shaped recovery …. But we have to keep in mind the deep hole we’re coming out of. I mean, there’s no question that the jobs are coming back more quickly than anybody would have anticipated, including me just a few months ago.

He added: “But we have to also recognize the fact that the economy was reopening ahead of schedule, so it would make sense that we start seeing some job creation coming back. But the hole is still so big in the context of losing 22 million jobs in two months so far. With all the reopenings that have happened and all the stimulus that’s taken place, we’ve recouped a grand total of one third of that.”

If you’re interested in raising finance to see you through this tough period, see our list of some of the loan providers. There is also a list of loan providers for people with bad credit.

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Bad Credit Credit Cards – Minn. Justices Say Menard Can’t Get Tax Offset On Card Debts | Fintech Zoom



Bad Credit Credit Cards – Minn. Justices Say Menard Can’t Get Tax Offset On Card Debts

By Daniel Tay · February 25, 2021, 4:46 PM EST

Menard can’t get sales tax offsets based on uncollectible debts from purchases made on its private-label credit cards because the debts were owed to Capital One, the card-issuing bank, and not…

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Bad Credit Credit Cards – Minn. Justices Say Menard Can’t Get Tax Offset On Card Debts

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Bad Credit Credit Cards – Canada’s income-supporting CERB abyss stares firmly back at us | Fintech Zoom



Opinion: Whether repaying CERB overpayments, larger tax bills or catching up on deferred debt payments, there must be an allowance to pay back over a reasonable period of time based on financial ability

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Is it too much to ask that we have some good news without all the bad? In recent weeks, it feels like that’s a definitive “yes.”

Although Canada’s overall COVID-19 positivity rates and hospitalizations are steadily coming down, modelling shows more contagious variants of the virus could soon drive huge spikes in cases and overwhelm the health-care system.

Similarly, the vaccine should represent a beacon of hope and an end to all the concessions we’ve had to make. And yet, any light at the end of the tunnel is overshadowed by production delays and delivery shortages.

What does this all mean in terms of household economics — specifically Canadians’ and household debt? Well, it’s all interconnected. Canada’s consumer debt problem is far from new; however, it’s become more complex during the pandemic.

The most recent employment report reveals a loss of 213,000 jobs in January, pushing the unemployment rate to 9.4 per cent — the highest level since last August. The persistent impact of the K-shaped recovery, along with long-term unemployment and a large cohort of low-income workers, will fuel an uncertain economic future.

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Cash infusions — including the Canada Emergency Response Benefit (CERB), the Canada Recovery Benefit (CRB) and the Canada Emergency Wage Subsidy (CEWS) for businesses — have so far sustained the economy and saved many Canadians from intense hardship during several national lockdowns and partial recoveries. But for some, these infusions have also created a false sense of security and numbed them to overall indebtedness, by no means resolving it.

Other programs such as payment deferrals (mortgage, car payments, credit cards, etc.) have also helped Canadians stay afloat, but only temporarily as many are now being asked to repay the deferred payments. Credit Canada has seen cases where clients are being asked to pay all deferred payments in one lump sum. This is causing a great deal of stress, and reveals a pattern of taking what you can when you can, and dealing with the consequences later.

For many, the end of payment deferrals also coincides with massive, post-holiday credit-card bills and, more detrimentally, CERB paybacks and larger tax bills. There will be a wave of panic and anxiety in the coming weeks when people see they owe taxes on CERB this year, as it wasn’t taxed at the source.

It isn’t a question of if the financial storm will come, but when, and how long it will last.

Nine million Canadians applied for CERB, and by the end of last year one million had already repaid benefits after realizing they were ineligible. Most recently, the government announced that ineligible self-employed Canadians won’t be forced to repay the funds if they earned at least $5,000 in gross self-employment income in 2019 and met all other eligibility requirements. Additionally, Canadians who received COVID-related income supports and had less than $75,000 in taxable income in 2020 will have a year with zero interest on tax debt.

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While these leniencies are meant to calm the panic caused by ineligibility payback pressure, many will still face a large debt bill in the coming months. How many will struggle with repaying it?

As we approach one year since CERB was introduced (March 15), it’s time for the government and financial institutions to contend with the repercussions of financial supports and payment deferrals, and how to approach repayments in both cases. There is no “one-size-fits-all” solution. The government and creditors will need to look at every individual case and develop individualized and customized repayment plans that allow Canadians to recover.

Whether a person is repaying CERB overpayments, benefits received in error, larger tax bills or catching up on deferred debt payments, there must be an allowance to pay back over a reasonable period of time based on financial ability. This would help prevent vulnerable Canadians from being pushed further into a hole. Repayment plans need to take into account a person’s income, expenses, debt and any other financial obligations and responsibilities they might have. Let’s not put further stress or strain on household finances, thereby hobbling any chances of a nascent recovery.

To its credit, the government sprinted into action and created different financial support programs to help those impacted by COVID-19. We cannot let those efforts be in vain — or worse, allow them to backfire.

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Frederich Nietzsche held that “if you gaze long enough into an abyss, the abyss also gazes back into you.” Together, we can pull Canadians out of this economic gap before they lose all hope and trust.

Keith Emery is co-CEO of Credit Canada, Canada’s first and longest-standing not-for-profit credit counselling agency.

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Bad Credit Credit Cards – Personal Finances News – 30 Essential Money Habits | Fintech Zoom | Fintech Zoom



Bad Credit Credit Cards – Personal Finances News – 30 Essential Money Habits | Fintech Zoom

Pekic / Getty Images

What are you doing every day that can help you grow your bank account? If you can’t answer that question, it’s time to develop some new money habits.

Just like with your physical health, your financial health depends on the daily decisions you make every day. While healthy habits such as eating better and exercising keep you fit, certain money habits can keep you financially comfortable and help you establish wealth. Click through for money habits you should be doing on a daily basis if you want to be rich.

Last updated: Feb. 24, 2021

Sponsored by Navy Federal Credit Union.

1. Spend Less Than You Earn

This habit is Personal Finance 101. It’s always going to be true that you’ll never get ahead financially if you always have more money going out than coming in. The great news is there are two ways you can work on this habit: Focus both on growing your income and controlling your spending to live within your means.

2. Keep Looking for New Earning Opportunities

As much as controlling spending is an essential habits, earning more money can be just as important. Look for ways to increase your income.

It could be something small, like babysitting once a week or bigger like selling crafts online.

3. Grow and Invest Your Money

In addition to looking for ways to earn money, financially savvy people also look for ways to grow the money they have. That can be as simple as finding a high-yield savings account where you can stash your funds and earn more than you would with a lower interest savings or checking account.

Woman managing the debt.

Woman managing the debt.

4. Continuously Pay Down Debt

Interest and debt can hold you back financially. It’s nearly impossible to get ahead and create a financially secure future when you’re always paying off yesterday’s purchases.

If you’re dealing with high-interest credit card debt, you can tackle it faster by taking advantage of a lower interest rate. For example, Navy Federal Credit Union’s Platinum card offers 0% APR on balance transfers for 12 months. By transferring your high-interest credit card debt to this card, you can potentially save hundreds or more on interest.

And if you also have a plan to pay off the card completely within a year, you’ll be saving so much more on top.

*Information on promotions is accurate as of Feb. 3, 2021. Additional requirements may apply. Offers and terms are subject to change.

5. Pay Yourself First

When people say “pay yourself first,” they mean you should take your savings out of your paycheck as soon as it hits your checking account to make sure you save something before you spend it all on bills and other expenses. The key to saving successfully is to save first, save a lot — 10% to 20% is often recommended — and save often.

6. Maintain an Emergency Fund

Virtually every personal finance expert agrees that an emergency fund is central to financial health. Building and maintaining an emergency fund can help you avoid debt and give you a reserve to draw from, which can also help you keep your financial goals on track even through life’s setbacks.

Start small by saving at least one month’s worth of expenses, and then work your way up to saving a larger emergency fund, such as a year’s worth. Having several months’ worth of expenses saved up can protect you against financial concerns when crises like a job loss or medical emergency come up.

Related: Here’s How Much You Should Have in Your Emergency Fund

7. Set Financial Goals

To know what daily money habits to focus on and prioritize your money management the right way, you have to know what you’re trying to accomplish. Review your finances. Look specifically for the biggest drains on your money, such as overdraft fees or high-interest debt, and also spend some time thinking about what you’d like your finances to look like in the future. Then, identify specific steps required to achieve your short- and long-term money goals.

8. Budget For Extra Expenses

In addition to basic living expenses and bills, you should also budget for other purchases you’re in the habit of making. Whether it’s buying a coffee twice a week, eating out on the weekends or buying gifts for friends and family, these seemingly little expenses can add up and suck your budget dry if you don’t plan for them.

Write down everything you’ve spent money on in the past month — go back further if you can remember or look up transaction records and receipts — and categorize each expense. Rank each category by how important it is to you. Add the top three priorities as line items in your budget, such as $100 a month for date nights or $20 a month to buy supplies for your hobby. For everything else, work on dropping those spending habits or finding cheaper alternatives like brewing your coffee at home.

DOGS, dog, pet insurance

DOGS, dog, pet insurance

9. Save For the Unexpected

Extra costs can come up frequently, and whether or not they’re true emergencies, they can still set you back. Maybe your tooth filling falls out, your pet decides to eat half a rug and needs emergency medical care, you get a flat tire or your kid wants to start playing a sport. Your finances will get hit twice as hard by these unexpected expenses if you don’t have extra money saved to cover them.

Having a buffer fund can create a little bit of wiggle room in your accounts so you can pay for these costs without going into debt or pulling money from your emergency fund. Try socking away $1,000 for each member of your household, for example, including pets.

10. Get and Stay Insured

In addition to a buffer fund, you should also consider insurance. Insurance is an important protection that can stand between you and bankruptcy due to a major emergency. Make sure you have the following types of insurance, if they apply to you:

Stay current on all policies so coverage will never lapse when you and your family need it most.

couple working on finances

couple working on finances

11. Review Your Progress Regularly

Set aside time each week to check on your financial goals. Did you make progress? Were there any setbacks? Track how you’re doing and celebrate your wins — not by splurging, though — to keep yourself motivated and on course.

12. Track Your Money

You can’t put your money where it matters if you don’t know where it’s going. Figure out a system to keep track of your financial transactions. Whether you prefer using pen and paper to reconcile your bank accounts the old-fashioned way or the personal finance apps like Mint, you need to have a clear picture of what is happening with your money. Tracking your spending can help you quickly identify problem areas that you can improve on and see the progress you’re making.

Prepay Your Property Tax Bill

Prepay Your Property Tax Bill

13. Check Financial Accounts Often

As part of keeping track of your money, you should check on all financial accounts on a regular basis. You should review spending accounts, like credit cards and checking accounts, daily in terms of checking balances and tracking expenses. Review bills when making monthly payments and updating your budget to make sure you avoid overdrafts or late fees.

Savings accounts should get a once-over weekly or monthly to keep them on track. Retirement accounts and investments can be reviewed less frequently, such as monthly, quarterly or biannually.

11959, Horizontal

11959, Horizontal

14. Carry Only the Money or Cards You Need

If your wallet is so full that you can hardly close it, consider limiting what you choose to carry to the bare necessities: one debit card, enough cash to cover a meal or ride home, and one form of identification — but not your Social Security card. You can’t spend money you don’t have with you, so leave credit cards and extra cash at home to resist the temptation to spend.

Leaving credit cards at home can also limit your vulnerability to identity theft should your wallet ever be lost or stolen. Plus, charging all purchases to the same debit card and linked account will make it simpler to track your spending.

15. Pay Bills on Time

Not only will paying bills on time save you money on late fees and penalties, but it is also key to financial peace and health.

If making payments on time is a struggle for you, review each bill you pay on a monthly basis and write down the due date. Set reminders on your calendar, alerts on your phone or sign up for reminder emails if they’re offered so you never miss a payment.

16. Automate Your Money

Another way to avoid late payments is to automate your transactions. For payments, set up automatic transfers through your bank’s online bill pay service to send money out to pay bills at least three days ahead of the due dates.

Automation is also great for the “paying yourself first” habit. If you have a retirement account through work, set up automatic contributions. If you get regular paychecks in fixed amounts, set up automatic transfers to move money from your checking account to a savings account or retirement fund right after payday. Monitor these automatic transfers so that you never overdraft an account.

Pregnant businesswoman on coffee break making online credit card purchase.

Pregnant businesswoman on coffee break making online credit card purchase.

17. Make Smart Moves To Tackle Your Debt

High-interest debt like credit cards can be extremely difficult to pay off. In order to tackle this debt sooner and more easily, consider your options.

By transferring your high-interest credit card debt to a card that offers a helpful balance transfer option, like Navy Federal’s Platinum card, you can make your money go further. The card’s offer of 0% intro APR on balance transfers for 12 months also doesn’t come with balance transfer fees, which is a perk you don’t see everywhere. It also doesn’t have any annual fees or foreign transaction fees. And with 24/7 stateside member service representatives that understand the needs of the military community, you can set yourself up for a successful future this way. Navy Federal membership is open to active duty military, veterans and families.

*Information on promotions is accurate as of Feb. 3, 2021. Additional requirements may apply. Offers and terms are subject to change.

Overhead Business Angles woman at office desk with supply.

Overhead Business Angles woman at office desk with supply.

18. Do It Yourself

Convenience is attractive, but it also can be expensive. Some services are worth paying for so that you can free up your time — or avoid incurring more costs by botching the job — but you can save yourself potentially thousands by getting in the habit of tackling many projects yourself. Simple things like preparing meals at home or buying a manicure kit to maintain your own nails can add up to big savings.

19. Build Your Credit

It can be easy to get complacent about your credit score and forget to pay attention to your credit report — until you try to get a home loan or turn in a rental application and are reminded of how important they are.

Check your credit reports yearly, and get any issues resolved if there are errors on them. Make sure you’re managing your credit well by paying off bills on time and keeping balances low. These money habits can help you avoid high-interest costs as well as build your credit.

20. Invest In Yourself

The best place you can put your money is into improving your value and net worth. From daily habits like eating well and getting enough sleep to big life steps like finishing school or switching careers, you should adopt the mindset of always growing and achieving goals that have long-term benefits.

21. Save For Retirement

Saving early and frequently is one of the secrets to retiring with financial security. Don’t put today’s wants ahead of tomorrow’s needs. Set up a retirement account and start adding to it each month.

Figure out how much you need to save before you retire and make a concrete plan to do it. Learn more about financial planning and investing to grow your money and keep up with inflation.

22. Get Your 401(k) Employer Match

Along with saving for retirement, put money toward employer-sponsored retirement accounts, especially if your employer will match your contributions. Employer contributions are free money — all you have to do is set a little cash aside for retirement, which is what you should be doing anyway.

23. Learn To Want (and Buy) Less

Resist the urge to buy this product and pay for that service to be happy, attractive, fun or anything else that marketing campaigns are designed to make you think. Practice mindfulness through diligent budgeting and possibly through habits that can help you improve how you feel, such as meditation and gratitude journaling, so that you remember to appreciate what you have. Make sure you’re the one deciding what your money should be spent on, not marketers or your peers.

24. Shop With a Plan

Shopping mindlessly leads to overspending and indulging in impulse buys. Planning ahead, especially when grocery shopping, can help you stick to buying what you actually need and avoid wasting money. Make a shopping list, stick to it, and try to get in and out of the store as fast as possible.

25. Compare Costs on Everything

To spend money wisely, you need to be able to decide if what you are getting is a good enough value to justify the cost. Get in the habit of comparing prices of products as well as comparing prices against their value to you. Some personal finance experts suggest you start by comparing your hourly wage to the cost of the item you want to buy.

For example, is that pair of shoes really worth three hours of pay? Then compare the cost of the thing you want to other things you could use the money for, such as paying off high-interest debt.

Lastly, compare the actual item to others like it. Is there a less-expensive alternative that offers the same product or service at a lower cost? If you spend a little more, can you get a better version that would last twice as long? Weighing these options can help you buy less junk, cut down on waste and lead you to choices that offer real value and higher quality.

26. Use Coupons and Ask For Discounts

Look for coupons, deals and discounts. Whenever you make plans to spend, whether it’s heading out to the bar with friends or signing up for a new internet service, check for deals and look for ways to spend less. Maybe the bar has a happy hour and you can save money by getting together earlier. The cable and internet company could be offering a special deal for new customers. Even your credit card issuer might give you a rate discount if you ask.

Only look for deals once you’ve already decided your purchase is a smart one. Don’t use discounts and coupons to justify frivolous spending.

Worried and exhausted male talking on phone at balcony.

Worried and exhausted male talking on phone at balcony.

27. Learn From Financial Setbacks

Almost as important as knowing the right things to do is knowing how to get back on track when things go wrong. Almost everyone faces financial setbacks at some point.

Practicing the habit of facing setbacks head-on. Look back on past financial missteps so that you can identify what went wrong and how you can prevent those problems in the future.

28. Fix Bad Habits

As you set and practice new, financially healthy habits, you can’t let yourself off the hook for those few bad habits that will inevitably stick around.

Maybe you avoid problems when they come up instead of quickly resolving them or you too easily justify overspending when you’re out with friends. Chances are you have a handful of money habits that are tripping you up again and again, and these bad habits can potentially do more damage than good habits can fix.

Whatever the issue, don’t let yourself sabotage your efforts to build wealth. Along with building positive habits, work to get past your financial weaknesses and be honest with yourself if you’re spending to fulfill an emotional desire instead of meeting a true need.

29. Educate Yourself on Finances

If you’re serious about building financial health and wealth, then you need to educate yourself. After all, you can’t make the best financial choices if you have no idea what your options are and how each decision will impact your life and money down the road. Start small by reading some personal finance books and spending a few minutes each day reading personal finance articles (just like you are right now).

When researching options to make a decision, dive deep into the pros and cons of your choices. Whether you’re shopping for a car loan or the right mortgage or are trying to find the right financial planner or investment vehicles, you’ll be able to make decisions wisely and confidently when you have learned as much as you can about the topic.

Customer paying for their order with a credit card in a cafe.

Customer paying for their order with a credit card in a cafe.

30. Take Advantage of Cash Back

If you have a credit card that offers cash back on everyday purchases, why not use it to put more money in your back account? Get in the habit of using your card whenever there’s a cash-back opportunity. Just be careful not to spend more than you can afford to pay back.

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Bad Credit Credit Cards – Personal Finances News – 30 Essential Money Habits | Fintech Zoom

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