Biometrics financial services – Aspect SDM http://aspect-sdm.org/ Tue, 22 Nov 2022 03:33:30 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://aspect-sdm.org/wp-content/uploads/2021/06/cropped-icon-32x32.png Biometrics financial services – Aspect SDM http://aspect-sdm.org/ 32 32 How Rising Personal Loan Interest Rates Will Affect Borrowers https://aspect-sdm.org/how-rising-personal-loan-interest-rates-will-affect-borrowers/ Mon, 21 Nov 2022 23:08:04 +0000 https://aspect-sdm.org/how-rising-personal-loan-interest-rates-will-affect-borrowers/

Personal loan interest rates are on the rise, reaching their highest since before the coronavirus pandemic. While existing borrowers with fixed rate loans will not be affected, those with variable interest rates may have already seen their rates increase. In addition, new loans will be more expensive than they were earlier in the year.

Key points to remember

  • The cost of borrowing through a personal loan has increased throughout 2022, reaching pre-pandemic levels.
  • Some existing personal loans could be affected, but for the most part, new borrowers will bear the brunt of rising costs.
  • Borrowers should carefully consider the cost of borrowing and shop around before applying for a loan.

Why Personal Loan Interest Rates Are Rising

The average interest rate on a two-year personal loan reached 10.16% for the third quarter of 2022, according to the Federal Reserve. That’s up from the pandemic-era low of 8.73% in the previous quarter. It is also the first time that the average rate has exceeded 10% since 2019 when it reached 10.32%.

The main reason for the interest rate hike is the Federal Reserve’s decision to raise its federal funds rate in six consecutive committee meetings throughout 2022 in an effort to combat high inflation rates. for 40 years. Although this rate does not directly influence personal loan rates, it does impact the prime rate, a benchmark that lenders use to determine their own interest rates.

But personal loan rates have not risen at the same pace as the federal funds rate, in part because of strong consumer demand, fueling competition among lenders to keep rates low. Nonetheless, borrowers can expect the cost of borrowing to continue to rise as long as the Federal Reserve continues its rate hike policy.

How will borrowers be affected?

Most personal loans have fixed interest rates that do not fluctuate over the term of the loan. For borrowers who have fixed rate personal loans, there will be no impact on their cost of borrowing.

However, borrowers with variable rate loans, which are less common, may see their interest rate – and therefore their monthly payment – ​​increase. Borrowers should review their loan agreement or contact their lender to find out how often their rate will change and if there are any caps on rate increases.

The brunt of the impact of rising rates, however, will be new borrowers. Whether you’re borrowing money to consolidate debt, make home improvements, or cover other major expenses, you can expect to pay more.

Should I apply for a personal loan?

If you’re considering applying for a personal loan, carefully consider your reasons for borrowing and whether you can comfortably afford the monthly payment.

If you plan to use the loan to improve your financial situation through debt consolidation or to cover emergency expenses, for example, it may still be worthwhile despite higher rates. But if you’re considering a loan to pay for a vacation or something else that isn’t urgent, it may be best to wait for lower rates.

If you’ve decided that a personal loan is right for you, take the time to shop around and compare multiple lenders, looking at interest rates, origination fees, repayment terms and other factors. If your quote is high, consider improving your credit or applying with a co-signer or co-applicant for potentially more favorable terms.

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Personal loan applications for rising debt consolidation, report finds https://aspect-sdm.org/personal-loan-applications-for-rising-debt-consolidation-report-finds/ Thu, 17 Nov 2022 21:20:15 +0000 https://aspect-sdm.org/personal-loan-applications-for-rising-debt-consolidation-report-finds/

In these unpredictable times, flexibility is key, especially when it comes to borrowing money for the things we need most. In a pinch, personal loans can be used to cover a number of things, from wedding expenses, surprise medical bills, to major home repairs or funeral expenses.

Debt Consolidation can also be a particularly strategic way to use them, as the process allows borrowers to better organize their debts and typically involves a lender sending funds to creditors on your behalf. Consolidating debt through a personal loan also allows borrowers to benefit from a lower interest rate while they repay the loan, which saves a lot of money over the life of the loan. .

A recent study by LendingTree reported that between the third quarter of 2021 and the third quarter of 2022, applications for personal loans in general increased by 12.3%, while applications for personal loans to use for debt consolidation increased by 29.1% during this period.

The report highlighted the increase in annual percentage rates, or APRs, coinciding with interest rate hike by the Federal Reserve as the main reason for the recent spikes.

Below, Select details what you can do if you want to take out a personal loan for debt consolidation purposes.

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How to apply for a personal loan

Before applying for a personal loan, you will want to check your credit score. Although there are several lenders, such as Reached and OneMain Financialwho will always consider borrowers with low credit ratings or one poor credit historyyou may have to pay a higher interest rate. However, those with higher credit scores will generally have to pay a lower interest rate.

Beginner personal loans

  • Annual Percentage Rate (APR)

  • Purpose of the loan

    Debt consolidation, credit card refinancing, marriage, moving or medical

  • Loan amounts

  • Terms

  • Credit needed

    FICO or Vantage score of 600 (but will accept applicants whose credit history is so poor that they have no credit score)

  • Assembly costs

    0% to 8% of target amount

  • Prepayment penalty

  • Late charge

    Greater of 5% of monthly amount past due or $15

OneMain Financial Personal Loans

  • Annual Percentage Rate (APR)

  • Purpose of the loan

    Debt consolidation, big expenses, emergency expenses

  • Loan amounts

  • Terms

  • Credit needed

  • Assembly costs

    Flat fee from $25 to $1,000 or percentage ranging from 1% to 10% (depending on your state)

  • Prepayment penalty

  • Late charge

    Up to $30 per late payment or up to 15% (depending on your state)

Click here to see if you are prequalified for a personal loan offer. Conditions apply.

Next, you’ll want to determine how much money you actually need to borrow. If you are consolidating debt, simply add up all of your balances to get a total.

While the smallest personal loan amounts — with a lender such as PenFed Credit Union, for example – tend to start around $600, minimum amounts closer to the $1000 mark are often more common. Be careful not to ask for more than you need, as you will eventually have to pay back all the money.

PenFed Personal Loans

  • Annual Percentage Rate (APR)

  • Purpose of the loan

    Debt consolidation, home improvement, medical bills, car financing and more

  • Loan amounts

  • Terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

Next, you’ll want to do your homework by researching and compare rates, fees and conditions from different personal loan providers. Some lenders will let you check your rate without hurting your credit score before you even apply.

Ideally, you’ll want to go with a lender that offers a low interest rate with no fees (or the least amount of fees) and a term that best fits your budget. LightStream and Marcus of Goldman Sachs are each known to offer personal loans with no origination fees, late fees or prepayment fees.

LightStream Personal Loans

  • Annual Percentage Rate (APR)

    5.99% to 21.49%* when you sign up for autopay

  • Purpose of the loan

    Debt consolidation, renovation, car financing, medical expenses, marriage and more

  • Loan amounts

  • Terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

Marcus by Goldman Sachs Personal Loans

  • Annual Percentage Rate (APR)

    6.99% to 24.99% APR when you sign up for autopay

  • Purpose of the loan

    Debt consolidation, home improvement, wedding, moving and moving or vacation

  • Loan amounts

  • Terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

When you decide which lender you want to go with, submit your application and wait for approval, which can take anywhere from one to a few days. After that, just wait for the funds to be paid out.

With debt consolidation, lenders will usually disburse money directly to up to 10 of your chosen creditors – you only need to provide their information and how much money each needs to be sent. This way, you will simply be responsible for reimbursing your personal lender.

Get matched with personal loan offers.

At the end of the line

Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff alone and have not been reviewed, endorsed or otherwise endorsed by any third party.

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Wagestream shares tips for employees to move from financial stress to financial well-being https://aspect-sdm.org/wagestream-shares-tips-for-employees-to-move-from-financial-stress-to-financial-well-being/ Fri, 11 Nov 2022 00:55:00 +0000 https://aspect-sdm.org/wagestream-shares-tips-for-employees-to-move-from-financial-stress-to-financial-well-being/

SYDNEY, November 11, 2022 /PRNewswire/ — Fintech for financial well-being Wagestream urge employees to Australia to take a few simple steps to move from financial stress to financial well-being – and says that even with rising prices and hard-to-get pay raises, there are simple steps that can be taken.


Josh Vernon, co-founder and CEO of Wagestream Aus

Encouragement comes after a joint report between ASIC and Beyond Blue published last month has demonstrated substantial evidence that financial wellbeing and mental health are linked, and that Australians are suffering from increasing cost of living pressures.

The ASIC & Beyond Blue report revealed that financial stress can contribute to conflict, social isolation, guilt and shame, stress, low mood, low self-esteem, substance abuse, panic attacks, self-harm and even suicidal ideation and actual suicide.

On the other hand, financial well-being occurs when a person can meet their expenses with some money left over, are in control of their finances, and feel financially secure now and in the future.

According Josh VernonCEO of Wagestream Australia, there are a number of tactics Australians can implement immediately to start moving from financial stress to financial well-being.

Use your own money (if possible) to pay for unexpected cash shortfalls

Josh Vernon continues: “It’s essential to have an emergency fund that you can access if you suddenly find that your car needs fixing or a huge energy bill hits you. That’s where the automation of regular savings is so useful.

“But if you find yourself in a sudden cash crunch, the last thing you want to use is an outstanding credit facility like a credit card or payday loan with significant fees. Instead, you can use your own money to pay for an unexpected expense via an “access to earned wages” offer.

“Products such as ‘earned pay access’ allow employees to access a portion of their earned pay before the end of their pay cycle. Because they are offered by employers, the fee is often subsidized , making it an affordable and responsible option.

“Knowing that you can access this service anytime from an app on your phone can also create great financial peace of mind, even if you never use it.

“Wagestream charges an apartment $2.49 fees for its earned wage access product, regardless of the amount an individual accesses flexibly. So it’s $2.49 to access $200 Where $2,000 – nothing complicated here.

“In many cases, the employer covers this cost for their employees as a social benefit. When the employer does not cover the cost, the employee pays the fixed costs. There are no other costs for employees to use the app – no fees for using our Grow, Learn, Track or Coach features and no interest or late fees on access to earned pay.”

Real wages are falling, so get over your debts

Josh Vernon continues: “Real wages are at their lowest point since late 2011 and most experts believe that this trend will not subside until the middle or end of 2023. Inflation in Australia and globally continues to rise and we are unlikely to have inflation within the RBA’s target range until next year.

“Despite an intense labor shortage that is driving up wages, wage increases are not yet in line with inflation. It will take a few years for real wage growth to catch up with inflation once inflation will reach the RBA’s target range. Most experts expect us to reach 2015 real wage levels in 2025 to 2026.”

Banishing financial stress involves getting a handle on any debt by being realistic about how much you owe and how soon you can pay it off.

“If you have multiple forms of debt, it can be helpful to create a list that ranks the debts from most expensive to least expensive. Then you can focus on paying off the most expensive debt first.

“Debt consolidation is potentially an option as well, which helps to reduce the financial complexity in an individual’s life. This complexity can lead to anxiety which can then translate into poorer financial decisions and outcomes.

“Most people get into debt out of necessity and sometimes those debts can pile up. Debt consolidation can mean just one regular repayment schedule, giving you a clearer idea of ​​when and how you could finally free yourself from your debts.

“It can, however, cost more in interest if the interest rate is higher and/or the term of the loan is extended, so each individual must weigh what is best for their own situation.”

Case Study: Eliza Kiers

Eliza Kiers recently moved from London at sydney with her British partner and three children, to pursue their dream of buying a house in the hinterland of Byron Bay.

His current challenge is saving for a down payment on a house, while traveling the UK every few years, dealing with expensive rent in Byron Bay and dining at Byron Bay’s amazing restaurants (one of the reasons why they wanted to move there!).

When she discovered the financial wellness features of the Wagestream app, including “access to earned pay”, she was thrilled for the extra help in achieving this goal.

According to Eliza: “While I would like a pay rise, I don’t see how employers could make wages go up as fast as inflation! But any support or tools my employer can provide for me help with money management would be great, as I don’t think managing personal finances well comes naturally to everyone, helping employees learn these life skills would be a real benefit.

“A friend in the UK told me about access to earned pay, and to be honest I didn’t quite believe it at first. I spent the first week telling all my friends : ‘Is this real?! They give you access to your money right away!’ It’s really crazy that more employers don’t offer it!

“When we moved to Byron Bay, I was short on funds because I hadn’t yet received my first Australian paycheck, so I used Earned Wage Access when we needed to pay a rental deposit on the property we now live in, same day we found it.It was much cheaper, smarter and easier than using a credit card or loan.

“Discipline is not my strong point! I have automatic transfers set up directly from my payroll, so I don’t even realize I’m putting money aside. On the Wagestream app, I can see how much I’ve earned each day, and watch it go up – I find it really motivating It’s like a Fitbit tracker except for my munited.”

salaryflow (www.wagestream.com/au/) is the financial wellness app founded by charities, designed for employees and built around compensation and making work more inclusive, fair and rewarding for one million people – giving them access to financial services fair based on their remuneration.

Workers use Wagestream to choose their own pay cycle, manage their budget, save for bad weather, chat with a personal financial coach, and get fairer deals on financial products – all in one app, with no changes to payroll.

Wagestream is guided by a social charter: every service it provides must measurably improve financial well-being. Over 70% of people using Wagestream feel more in control of their money, resulting in a happier, healthier and more productive workforce.

Copyright © acrofan All rights reserved

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NAD’s Claims Ruling Holds Lessons Across Industries – Advertising, Marketing and Branding https://aspect-sdm.org/nads-claims-ruling-holds-lessons-across-industries-advertising-marketing-and-branding/ Tue, 08 Nov 2022 08:21:16 +0000 https://aspect-sdm.org/nads-claims-ruling-holds-lessons-across-industries-advertising-marketing-and-branding/

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This week, NAD announced a decision regarding various claims made by Accredited Debt Relief and its marketing agency. While parts of the decision will likely only be of interest to companies operating in the debt settlement space, the decision also contains important lessons for companies operating outside of this space. We will focus on these in this article.

Claims on expected results

Accredited Debt Relief has announced that its customers can “cut monthly payments in half”. Although the company had evidence that some customers – less than a third – had achieved these results, NAD felt that consumers seeing the claim would assume it was “representative of the typical consumer experience”. As a result, NAD thought consumers might be misled by the claim and recommended the company focus on more typical results.

NAD also noted that there was a “detailed and lengthy” disclosure about the program and its hardware limitations at the bottom of web pages that included the disputed claims. Citing FTC guidelines, NAD wrote that material terms must be “clearly and conspicuously communicated in all four corners of the advertisement in which this claim appears.” Simply putting the information “somewhere” is not enough for people to find it.

One of the “detailed and lengthy” disclosures NAD mentions is around 300 words. Does NAD really expect all of this information to be included in ad copy? Probably not. In its ruling, NAD highlighted certain terms — including typical program length, fees, and certain exclusions — that seemed to be most relevant. Advertisers will have to undertake the difficult task of determining which terms are most important, including those in the body of the ad, and providing the rest in a disclosure.

Claims “up to”

Along the same lines, NAD challenged claims that consumers could reduce “total debt by up to 50 percent.” The evidence you need to back up an “until” claim can largely depend on the context of the claim. While in some cases – like perhaps a “save up to 50% on sweaters during our Black Friday sale” – it may be enough to show that at least 10% of the sweaters are reduced to the 50% level , in other cases, the burden of justification may be heavier.

In the example I made up, consumers can presumably know how much they will save before they make a purchase. In this case, however, NAD noted that consumers won’t know if they’ll be able to get a full 50% debt reduction until they sign up and agree to pay a substantial fee. In the context of “a highly consequential assertion of potential long-term savings”, NAD appears to expect advertisers to use a number that reflects what “all or nearly all individual consumers will save”.

Native Advertising

NAD’s decision also focused on a website claiming to offer “reviews of the best debt consolidation companies” based on various objective factors. Accredited Debt Relief comes in first place with a “#1 Top Rated – We Recommend” badge. Consumers who are impressed with this achievement may be a little less impressed if they read the footnote at the bottom of the site which states, among other things, that the site “is owned by the same company that owns Accredited.”

NAD determined that consumers could reasonably expect the website to be independent. “Any disclosure that the website is paid advertising content contradicts the message of independence and impartiality otherwise conveyed by a rating or ranking website. Disclosures may not contradict claims that they qualify as visible, and cannot remedy the misleading idea that the site is independent.”

***

This is the second case initiated by NAD in the area of ​​debt settlement this year. (You can read our article on the former here.) If you work in this space, you should definitely take a closer look at both decisions as NAD seems to be focused on this area. But don’t ignore these cases just because you work in another industry. As our articles have demonstrated, the decisions include valuable lessons that apply to many industries.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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Why Your Clients’ Benefits Package Needs an Element of Financial Wellness https://aspect-sdm.org/why-your-clients-benefits-package-needs-an-element-of-financial-wellness/ Wed, 02 Nov 2022 11:17:57 +0000 https://aspect-sdm.org/why-your-clients-benefits-package-needs-an-element-of-financial-wellness/

Let’s be honest, no matter how the experts call the nation’s current economic volatility, U.S. employees are still feeling the painful pinch of rising costs for major daily living expenses like food, gas and housing. And for some of them trying to make ends meet, financial insecurity has become a reality.

As these financial concerns increase, they can have a significant impact on employees’ work performance, personal life, and future plans. And almost all employees (93%) look to their employer for financial wellness support. The question then becomes: what inventive benefits – from education and financial resources to loan repayment assistance and financial counseling – can you offer customers to help employees meet these challenges and, more importantly, regain their financial footing?

In figures: the impact of inflation on employees

Let’s start by taking a closer look at some of the causes of these money problems – and the effect it has on employees. Unsurprisingly, Americans say their main concern is paying for housing and current expenses:

  • House prices are still up nearly 11% from a year ago, and rising interest rates are having a brutal effect on the housing market. This drives up the cost of buying a home by several hundred dollars each month and crushes demand.
  • In addition, rental prices for single-family homes ballooned in the first half of 2022, reaching a national average of $2,495 per month — a 13.4% increase over the same period in 2021.
  • Whereas Fuel prices have recently fallen almost 20% from a high US national average of $5.08 per gallon in June, the current average ($4.08/gal) is almost double what it was in 2020.
  • Food prices jumped 13.1% in July, the biggest year-on-year increase since March 1979.

As debt continues to mount, so do financial shocks, which Pew defines as a significant loss of income or a major unforeseen expense, such as a trip to the hospital or a major car repair. In fact, 60% of Americans experience financial shocks and one-third experience two or more per year. That puts more financial strain on American families, nearly 70% of whom don’t have emergency savings. These costs are typically around $2,000, which is half a month’s worth of income for the median household.

The impact on employees is obvious. A new survey from financial services provider SoFi has found that just over half of employees are more stressed about their finances today than they were at the height of the pandemic and spend around 25% of their working week dealing with financial problems. The irony behind this brewing concern? While the majority of employees feel financial pressure, only 13% of the workforce says they can talk openly about money at work and get the help they need.

Cynthia Campbell, Director of Experience at BALANCE, an organization that provides comprehensive financial counseling and education services, is one person who has helped employees fight this double-edged sword.

Campbell explains how this prolonged surge of inflation tripped people up. “We saw consumers using credit as a ‘safety net’ during the pandemic when job losses were high. Now, even though we are reporting low unemployment, the average family is still struggling as inflationary prices for gasoline, groceries, clothing, etc., weigh on household budgets. People are turning to credit again, but now interest rates have gone up, making that credit more expensive. The monthly minimum payment increases as the balance increases, but the budget has no room for it. »

According to an August 30 report from the Federal Reserve Bank of New York, the average credit card debt held by households in the United States jumped 13% in the second quarter, the largest increase in such debt since 1999.

Campbell says that for many, the main challenge is often admitting they need help. “It’s hard for some to reach out and ask for advice. But when people shine a light on these financial issues and share the burden of this stress with another person, there seems to be a relief that washes over them.

Financial advisors can then work with employees to co-create a plan to address the specific financial issues they face, from paying off debt and student loans to restoring their credit score and preparing for a future. financially more stable.

“Employers underestimate the impact of financial stress on their employees. If an employee is stressed about their financial situation, they will not be fully present at work. They may also think they need a better paying job,” she adds.

Campbell suggests that it is in employers’ best interests to care about the financial well-being of their staff, just as they do about their physical and mental well-being. “Today’s job seeker is looking for an employer who cares about their ‘whole person’ and allows them to bring their true selves to the workplace.”

On the front line of financial stress

For several years, I worked with Jeff LeMay, ARAG’s Director of Customer Service and Claims. He oversees a team of customer service specialists who are on the front line, so to speak, of responding to member concerns and requests for legal assistance – many of which actually start with financial issues.

LeMay notes, “Members with questions about filing for bankruptcy are quite common. Often they don’t know if filing for bankruptcy is the right option; but they are anxious because they are drowning in debt and don’t know what else to do.

“We also hear from employees who are having difficulty repaying their student loans. We expect this to be an even bigger issue in 2023, as federal student loan forbearance — essentially a pause in payments — is set to end on December 31.

Other catalysts for financial insecurity include housing problems and unforeseen health care costs. “The members want legal help because the landlords are increasing their monthly rent and the member can no longer afford the new rate,” LeMay said. “Some members are also dealing with unexpected medical bills that they cannot pay, which can eventually lead to debt collection.”

Employees considering major steps, such as debt consolidation or bankruptcy options, need a reputable financial and legal advisor to:

  • Understand what each option entails
  • Know their short-term and long-term implications, and,
  • Find budgeting strategies to keep moving towards financial health

“A lot of Americans are in a world of unknowns and there’s a lot of anxiety,” adds LeMay. “But once they have a resource to turn to – and they’re on the right track to help solve their problems – it’s a big relief because it takes the burden off them, financially and emotionally.”

Find out what’s hidden in the current benefits offers

Part of the solution to helping employees improve their financial well-being may be right in front of you. Start by reviewing your clients’ existing human resources and benefits programs that can be leveraged as part of your financial wellness program. For example, your organization’s financial, banking, or life insurance partners may have tools, programs, or websites designed for your employees that you may not be fully promoting. This could include opportunities for financial education through a retirement plan.

But think outside the box

Consider what benefits could complement your existing programs and help employees move up the financial wellness ladder. This could include offering benefits such as:

  • A student loan repayment plan. This is a program designed to help employees get out of college debt and focus more on their savings goals. A sad reality is that almost 15 million millennials are more in debt than any other generation, which means employer-sponsored loan assistance is greatly appreciated.
  • Emergency Savings Accounts (ESA). These “rainy day” accounts allow automatic deposits through payroll deductions and are designed to encourage healthy savings habits. Unlike 401(k) accounts, ESAs are taxed as income and can be accessed as needed without penalty. ESAs provide short-term liquidity that can help protect long-term savings in retirement accounts.
  • Payday advance. As the name suggests, payday advance benefits provide employees with access to the salary they earned prior to the regular payroll cycle. While they don’t address the underlying problem of living paycheck to paycheck, they can help employees avoid costly payday lenders, late fees, and bank overdraft fees.
  • Legal insurance. For employees struggling with significant debt or financial problems, a legal expenses insurance plan could also be a valuable asset, providing affordable access to legal counsel who helps them understand their options as well as the short- and long-term implications. long-term financial decisions. Like some insurers, legal insurance companies can offer their members access to a financial advisor for personalized advice.

By exploring new and existing avenues of financial wellness benefits, you’ll increase the overall value and appreciation of your customers’ offerings, which can be especially impactful in these times of economic volatility. Plus, the enhanced benefits will speak volumes for employees seeking help from their employer to meet their financial challenges. Reducing employee financial stress and insecurity and improving overall well-being is a win for them and, ultimately, your customers.

Denis Healy is a member of the ARAG® management team. He is a strong advocate for legal expenses insurance because he has seen firsthand how it helps people get the legal protection and help they need. He has over 30 years of experience in the insurance industry, with a particular focus on selling group voluntary benefits products to employer groups of all sizes through the broker community. and consultants.

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SOFI Stock (NASDAQ:SOFI) Third Quarter Earnings This Week – Is This A Buy? https://aspect-sdm.org/sofi-stock-nasdaqsofi-third-quarter-earnings-this-week-is-this-a-buy/ Sun, 30 Oct 2022 07:25:00 +0000 https://aspect-sdm.org/sofi-stock-nasdaqsofi-third-quarter-earnings-this-week-is-this-a-buy/

In all likelihood, SoFi (NASDAQ: SOFI) is expected to post a surprise in terms of third-quarter earnings, when it is published on November 1. The need for personal loans continues to increase, especially during tough economic times when people generally need additional funds. Credit card companies are getting more aggressive with their rates, so people have turned to personal loans instead. SoFi has been able to take advantage of this trend, as it offers both consumer financial services and loans. The future looks bright for the company. Therefore, we are bullish on SOFI stock.

Investors are hoping strong bank earnings signal the resilience of the economy. Investor optimism has been high lately, with most reacting positively to recent financial results from major banks. This is great news for SOFI investors, who had been hoping that strong bank earnings would signal that the financial sector is on the way to a comeback.

SoFi’s stock has fallen more than 65% since the start of the year, but it should recover soon. It only has two months left this year, and if it can create an earnings surprise, we could see its price rise again. It trades at a beta of around 2.0, which suggests it is twice as volatile as the broader market. Therefore, investing in it carries a fair share of risk.

However, it presents itself as an excellent bet before winnings. It is currently trading at around 3.5 times forward sales, which is significantly lower than a few months ago.

SoFi taps into growing demand for personal loans

The financial services offered by SoFi are designed to help consumers with their daily needs. The company has won millions of customers through high-yield checking and savings accounts, credit cards, brokerage services, and more. Moreover, it offers loan products that can be approved faster and at better rates thanks to its massive database. SoFi is essentially a financial one-stop-shop.

In recent quarters, the company has exceeded expectations. With its third quarter results looming, it is plausible to assume another strong performance on the back of a robust personal lending trend that continues to grow steadily. SoFi’s expansion into new markets and its ability to provide personalized service will make it easier to reach new customers.

Additionally, the company’s strong balance sheet is a major asset to the business. He holds a whopping $707 million in cash, giving him plenty of leeway to continue growing his business at a healthy pace for the foreseeable future. What is more encouraging is that his losses have improved considerably.

It recorded a loss of $0.26 per share in the second quarter of 2021, which improved by 53.8% in the second quarter of this year to a loss of $0.12 per share. Earnings may turn positive by next year. Also, SoFi ended the quarter with 4.3 million membersa 69% improvement over the same period last year.

Therefore, we are extremely positive about the future growth and success of the business. His losses are unlikely to hamper his plans in the future, and with student loan arrangements improving significantly next year, SOFI stock may rebound strongly.

What is the price target for SoFi shares?

As for Wall Street, SOFI stock maintains a moderate buy consensus rating based on six buys, three holds and no sells assigned over the past three months. The average SOFI price target is $8.25, implying an upside potential of 51.38%. Analyst price targets range from a low of $7 per share to a high of $10 per share.

Conclusion: SOFI stock is likely to beat earnings

The company is expected to release its third quarter results soon, and investors will have a better understanding of where it stands. In all likelihood, however, he should display another solid pace in both his top and bottom lines.

The rise in personal loans is fueled by consumers looking for debt consolidation and easily accessible funds. SoFi capitalized on this opportunity by growing its origination rate faster than its peers.

Stocks have trended higher following recent bank earnings, but investors should also prepare for greater volatility. The Federal Reserve will raise interest rates at its upcoming meetings over the next two months as inflation remains incredibly high.

Therefore, volatility is a given in the current market scenario. However, that doesn’t take away from the quality of SoFi and a long-term bull case. Investors should look to the long term and buy the stock as it trades near its 52-week low.

Disclosure

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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In a pinch? Here are the four loans you can get the fastest https://aspect-sdm.org/in-a-pinch-here-are-the-four-loans-you-can-get-the-fastest/ Sun, 23 Oct 2022 14:00:26 +0000 https://aspect-sdm.org/in-a-pinch-here-are-the-four-loans-you-can-get-the-fastest/

Image source: Getty Images

Here are some quick ways to get cash ASAP.


Key points

  • You can use your credit card to pay, as well as to get a cash advance.
  • Payday loans are a quick way to get cash, but have APRs of up to 400%.
  • If you have valuables, you can get cash through a pawnbroker, or you can use your car as collateral for a title loan.

When you’re in a bind and need cash fast, it’s important to know what your options are. There are different types of loans that you can get relatively quickly, depending on your needs. Before taking out a personal loan, it’s important to understand the different types of personal loans and find the one that’s right for you. Here are four of the most common.

1. Credit cards

If you have good credit, you may be able to get a cash advance on your credit card. This is usually a quick and easy process, but it will come with high interest rates. So if you are able to repay the loan quickly, this could be a good option. Cash advances can be very useful in an emergency situation when you need money immediately.

Another advantage of using a credit card for a cash advance is that you may already have money available on your line of credit that you can use. This can be useful if you don’t want to take out a new loan or use other assets as collateral. However, using a credit card for a cash advance also has some drawbacks. First, as mentioned earlier, interest rates on cash advances are usually very high. This means that if you don’t repay the loan quickly, you could end up paying a lot of interest. Also, most credit cards have limits on how much you can borrow as a loan. So if you need a large sum of money, this might not be the best option.

2. Payday Loans

Payday loans are one of the fastest ways to get cash, but they come with high interest rates and fees. They’re usually only for small amounts of money, so if you need a lot of cash quickly, they’re probably not the best option. However, if you just need a little extra money to last you until your next paycheck, a payday loan might work. Payday loans are not ideal, Nevertheless. These are short-term, high-interest loans, usually due by your next payday in a single amount. Currently, 37 states regulate payday loans due to their high costs.

Payday loans are usually for $500 or less and are due on your next payday. Depending on state laws, people can get payday loans online or through a storefront lender. A typical two-week payday loan can have annual percentage rates (APR) as high as 400%. By comparison, credit card APRs can range from 12% to 30%. Payday loans should be considered an option of last resort.

3. Pawnbroker

Pawnbrokers are short-term loans secured by an object of value that people bring to a pawnbroker. As they are backed by the value of the object, they are cheaper than payday loans but are more expensive than a conventional loan. Pawnbrokers are regulated by the government. This type of loan is ideal for people who need cash quickly without a credit check.

Loan terms vary by pawnbroker. People can use valuables, such as jewelry or electronics, to get a loan based on the value of the item. No credit check is required. Those who may not qualify for a traditional loan can consider a pawnbroker. Once the loan amount is paid off, you will receive your items. If you don’t pay it back, the pawnbroker can seize the secured items.

4. Securities Lending

Title loans are another quick way to get cash. They are short lived secured personal loans supported by your car. Financial institutions put a lien on your car. If you are unable to repay the loan, they can seize your car, as it is used as collateral. Title loans generally do not consider your credit and can be approved quickly. However, a title loan is very expensive, with an APR of around 300%.

These are four of the most common types of loans that you can get relatively quickly. Consider which one best suits your needs and compare interest rates and fees before you apply. Understand how these personal loans work can help you make a smarter decision.

The Ascent’s Best Personal Loans for 2022

Our team of independent experts have pored over the fine print to find the select personal loans that offer competitive rates and low fees. Start by reviewing The Ascent’s best personal loans for 2022.

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Don’t Miss the Civil Service Loan Waiver https://aspect-sdm.org/dont-miss-the-civil-service-loan-waiver/ Thu, 20 Oct 2022 20:28:12 +0000 https://aspect-sdm.org/dont-miss-the-civil-service-loan-waiver/

It is estimated that nearly 3.5 million public servants could get $145 billion in student loan forgiveness if they consolidated and applied for the Public Service Loan Relief (PSLF) waiverwhich expires October 31, 2022. Unfortunately, many people do not attempt to use this waiver because they are simply unaware of it and the extensive rules that could make them eligible for student loan forgiveness.

Meagan Landress, consultant at student loan planner and Certified Student Loan Professional®, had a lot to say on this issue. “I have nightmares about people missing out on the PSLF waiver. The waiver is a limited time offer, so people only have until October 31, 2022 to claim that past payments ineligible for PSLF are factored in. This is a big deal because if someone doesn’t know and it applies to them, they may not have their past payments count towards the 120 PSLF payment threshold. or even to have their entire balance canceled!

As the October 31 deadline approaches, it’s important to understand whether or not you qualify and what steps you need to take to submit your information on time.

Who is eligible for this pardon?

To qualify, you must have federal loans held by the Department of Education. Private student loans are not eligible. You must also be currently or have been employed full-time (as a W2 employee) by an eligible employer.

These eligible employers can be any U.S. federal, state, local, or tribal government agency, which also includes employers such as the U.S. military, public elementary and high schools, public colleges and universities, agencies public child and family services and special government districts. . Qualifying nonprofit organizations include organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code, and organizations that are not tax-exempt under Section 501(c)(3) of the Internal Revenue Code. Code, but provide an eligible service.

You can also check the Ministry of Education website PSLF Helper Toolwhich will help you determine if your current or past employer is considered an eligible employer under the PSLF program.

While working full-time for an eligible employer, under the current exemption:

  • Any repayment status after October 1, 2007, of any payment amount, may be considered for PSLF, regardless of Ministry of Education loan type and repayment plan,
  • Any adjournment before 2013 can count for the PSLF (but not the school adjournment),
  • Any prolonged abstention (12 consecutive months or more, or 36 months or more in total) can be taken into account for the PSLF.

There is a problem of awareness and access

The main source of communication regarding the PSLF waiver from the Ministry of Education and the loan officer was via email. They use the registered email address, which if incorrect or not updated creates a big outreach problem. Additionally, this time-limited waiver requires action on the part of the borrower, such as submitting applications and contacting former employers. This process also requires a computer to complete a consolidation application and generate the Employment Attestation form, which many people may not have easy access to.

However, the Ministry of Education created useful resources who can guide you through the process.

How can you act now?

Even though the deadline is fast approaching, you can still take steps to benefit from this waiver. As long as your employer has signed your forms before October 31, you will be eligible for the waiver. Learn more to see what steps you need to take to get your form reviewed and hopefully approved.

To sign up for PSLF or update your payment account:

  • First, confirm your start and end dates of employment, if applicable (use MM/DD/YYYY format) for ALL eligible employers.
  • Obtain the Employer Identification Number (EIN) from your employer, which can be found on previous W2 forms, or you can confirm this with your Human Resources department.
  • Complete it Online PSLF Help Tool for your eligible employers.
  • Print and bring the automatically completed Employer Certification Form (ECF) to these employers for their signature.
  • Send or upload the signed form(s) to Mohela (the PSLF agent).

Be sure to submit the ECF by October 31, 2022 to receive the benefits of the current PSLF waiver.

According to Meagan Landress, if you are not eligible for the rebate at this time, to maintain your PSLF eligibility, you must:

  1. Work full-time for a qualified employer
  2. Have direct federal loans
  3. be on a income-based repayment plan
  4. Make 120 qualifying payments

So even if you don’t qualify for full forgiveness right now, you can still take steps to have your student loan debt forgiven in the future.

Good luck!

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Should you take out a personal loan when you have savings you can count on? https://aspect-sdm.org/should-you-take-out-a-personal-loan-when-you-have-savings-you-can-count-on/ Sun, 16 Oct 2022 14:00:41 +0000 https://aspect-sdm.org/should-you-take-out-a-personal-loan-when-you-have-savings-you-can-count-on/

Image source: Getty Images

The quick answer? It depends.


Key points

  • Personal loans are a good option to consider when you need money.
  • Although you can turn to your savings in some situations, in other cases you are better off leaving your cash reserves alone.
  • If you have less money in savings and a higher credit score, you may want to take out a personal loan.

The advantage of personal loans is that they tend to be more flexible and affordable than other borrowing options. Granted, these days personal loan rates are on the rise due to interest rate hikes by the Federal Reserve. But when you compare the cost of borrowing through a personal loan to that of a credit card, it’s easy to see why the former might win out.

Now, a personal loan can be a good option to fall back on when an unexpected bill comes up and you need cash unexpectedly. But what if you have money in your savings account – enough to cover the expenses you face? Should you dip into your emergency fund? Or should you leave your cash reserves alone so the money will be there for another time and take out a personal loan instead?

It all depends on why you are borrowing and how much money you have

Some people take out personal loans for non-emergency situations, such as home renovations. If this is the scenario you find yourself in, you don’t want to dip into your emergency savings to pay for something like new kitchen appliances or an updated master bathroom. But if you’re considering getting a personal loan because an unexpected bill has come up, you might want to consider tapping into your emergency fund if it’s well stocked.

Discover: These personal loans are the best for debt consolidation

More: Prequalify for a personal loan without affecting your credit score

Although personal loans tend to have more competitive borrowing rates than other loan products, in the end you will still pay interest on the amount you borrow. And also, as mentioned, personal loan rates are up right now because everything consumer borrowing rates are higher. As such, you might end up finding that a personal loan isn’t as affordable as you think.

So let’s say you’ve had a problem with your car that you need to fix immediately, and you have a bill for $5,000. You might be inclined to borrow that money and leave your savings intact. But even if your credit score is great, you could easily, at today’s rates, pay 6% or 7% (or more) if you take out a personal loan to cover that cost. And so if you have, say, $20,000 in savings, you might want to dip into that instead, because you’ll still have a good amount of money left over after you make that withdrawal.

On the other hand, if you only have $5,000 in savings, you might not want to empty your bank account to cover car repairs, leaving you vulnerable in the event of another unexpected expense. So, in this scenario, taking out a personal loan would be a reasonable thing to do.

Weigh Your Options Carefully

Sometimes it pays to get a personal loan even if you have money in the bank. If you do decide to get a personal loan, try shopping around with a few different lenders so you can compare their rates and closing costs. Doing a little research could make your personal loan more affordable at a time when rates are rising across the board.

The Ascent’s Best Personal Loans for 2022

Our team of independent experts have pored over the fine print to find the select personal loans that offer competitive rates and low fees. Start by reviewing The Ascent’s best personal loans for 2022.

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Asia is sailing in headwinds from rate hikes, war and China’s slowdown https://aspect-sdm.org/asia-is-sailing-in-headwinds-from-rate-hikes-war-and-chinas-slowdown/ Thu, 13 Oct 2022 23:16:33 +0000 https://aspect-sdm.org/asia-is-sailing-in-headwinds-from-rate-hikes-war-and-chinas-slowdown/

Asia’s strong economic rebound earlier this year is running out of steam, with a weaker-than-expected second quarter. We have cut the growth forecast for Asia and the Pacific to 4% this year and 4.3% next year, well below the 5.5% average of the past two decades. Despite this, Asia remains a relative bright spot in an increasingly bleak global economy.

The waning momentum reflects three formidable headwinds, which could prove persistent:

  • A sharp tightening of financial conditions, which is increasing government borrowing costs and is expected to become even more restrictive, as central banks in major advanced economies continue to raise interest rates to rein in the fastest inflation since decades. Rapid currency depreciation could further complicate policy challenges.
  • The still raging Russian invasion of Ukraine continues to trigger a sharp slowdown in economic activity in Europe that will further reduce external demand for Asian exports.
  • China’s strict COVID-19 policy and associated lockdowns, which, together with growing turmoil in the real estate sector, have led to an unusual and sharp slowdown in growth, which in turn is weakening the momentum of connected economies.

General slowdown

After near zero growth in the second quarter, China will recover modestly in the second half to reach annual growth of 3.2% and accelerate to 4.4% next year, assuming pandemic restrictions are gradually eased.

In Japan, we expect growth to remain unchanged at 1.7% this year before slowing to 1.6% next year, weighed down by weak external demand. Korea’s growth in 2022 was revised up to 2.6% due to strong growth in the second quarter, but revised down to 2% in 2023, reflecting external headwinds. India’s economy will grow, albeit slower than expected, by 6.8% this year and 6.1% in 2023, due to weaker external demand and tighter monetary and financial conditions that are expected to weigh on growth.

Southeast Asia is expected to experience a strong recovery. In Vietnam, which is benefiting from its growing importance in global supply chains, we expect 7% growth and a slight moderation next year. The Philippines is expected to expand by 6.5% this year, while growth will reach 5% in Indonesia and Malaysia.

Cambodia and Thailand will experience faster expansion in 2023 thanks to a likely recovery in foreign tourism. In Myanmar, which suffered a deep recession due to the coup and the pandemic, growth is expected to stabilize at a low level this year amid continued unrest and suffering.

The outlook is more difficult for the other Asian frontier markets. Sri Lanka is still experiencing a severe economic crisis, although the authorities have reached agreement with IMF staff on a program that will help stabilize the economy.

In Bangladesh, the war in Ukraine and high commodity prices hampered a strong post-pandemic recovery. The authorities have preemptively requested an IMF-supported program that will strengthen the external position and access to the IMF’s new Resilience and Sustainability Trust Fund to meet their large need for climate finance, which will strengthen their ability to cope with future shocks.

Highly indebted economies such as the Maldives, Lao PDR and Papua New Guinea, and those facing rollover risks, such as Mongolia, also face challenges as the tide changes.

We expect growth in Pacific island countries to rebound strongly next year to 4.2% from 0.8% this year, as tourism-based economies benefit from the easing of travel restrictions.

Inflation remains high

Inflation is now above central bank targets in most Asian economies, driven by a combination of global food and energy prices, falling currencies against the US dollar and reduction of production gaps. Core inflation, which excludes food and energy price volatility, has also increased and its persistence, driven by inflation expectations and wages, needs to be watched closely.

Meanwhile, the US dollar strengthened against most major currencies, with the Federal Reserve raising interest rates and signaling further hikes to come. Most Asian emerging market currencies have lost between 5 and 10% of their value against the dollar this year, while the yen has depreciated by more than 20%. These recent depreciations have started to trickle down to underlying inflation across the region, which could keep inflation high for longer than expected.

Finally, the spikes in global food and energy prices earlier this year threatened to sharply increase the cost of living in the region, with particularly strong implications for the real incomes of low-income households who spend more of their disposable income on these products.

Hard Times Policy

In a context of slowing growth, decision makers are faced with complex challenges that will require strong responses.

Central banks will have to persevere with their tightening policy until inflation returns to its target for a long time. Exchange rates should be able to adjust to reflect fundamentals, including terms of trade—a measure of the price of a country’s exports relative to its imports—and foreign monetary policy decisions. But if global shocks cause borrowing rates to spike unrelated to domestic policy changes and/or threaten financial stability or undermine the central bank’s ability to stabilize inflation expectations, foreign exchange interventions can become a useful element of the policy mix for countries with a reserve, alongside macroprudential policies. Countries should urgently consider improving their liquidity buffers, including by requesting access to the Fund’s precautionary instruments for eligible individuals.

Public debt has increased dramatically in Asia over the past 15 years, particularly in advanced economies and China, and has increased further during the pandemic. Fiscal policy should continue its gradual consolidation to moderate demand alongside monetary policy, centered on the medium-term objective of stabilizing public debt.

Accordingly, measures to protect vulnerable populations from the rising cost of living will need to be well targeted and temporary. In highly indebted countries, aid will need to be budget neutral to maintain the path of fiscal consolidation. Credible medium-term fiscal frameworks remain an imperative.

Beyond the short term, policies must focus on repairing the damage caused by the pandemic and war.

The scars of the pandemic and current headwinds are likely to be significant in Asia, in part due to high corporate leverage that will weigh on private investment and education losses from school closures that could erode human capital if corrective action is not taken today.

Strong international cooperation is needed to avoid further geo-economic fragmentation and to ensure that trade contributes to growth. There is an urgent need for ambitious structural changes to boost the region’s productive potential and address the climate crisis.

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