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3 reasons to consider debt relief this November
Inflation is on the decline. Interest rates were recently reduced. The unemployment rate is falling. All of these headlines were recently released, giving Americans some welcome economic news after a few years of worrisome developments. But while all of these news items are trending in the right direction, it will still take time for the economic pain of recent years to fully subside.
Interest rates, after all, are only coming down from a 22-year high. And inflation, while almost at the Federal Reserve’s target 2% goal, was as high as 9% just two years ago. Interest rates on a range of borrowing products, meanwhile, remain exponentially higher than they were in 2020 and 2021 during the height of the pandemic.
Understanding this dynamic, then, many Americans may still benefit from pursuing a debt relief option, even with the recent encouraging economic news. Are you one of those who could use the help? Below, we’ll break down three reasons why you should consider debt relief this November.
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3 reasons to consider debt relief this November
Not sure if debt relief is the right next step for you? Here are three reasons why it may be:
Credit card interest rates are rising
Credit card interest rates are high and, this week, they broke a new record. Now at 23.37%, if you’re one of those with an average of around $8,000 in credit card debt, you’re likely struggling to make ends meet. Fortunately, multiple debt relief options can help relieve this burden. Credit card debt forgiveness is a popular alternative. With this option, borrowers can potentially qualify to have 30% to 50% of their existing debt forgiven. You’ll need to meet certain criteria but if the alternative is to simply let your current debt and interest compound at today’s rising rate, it could be worth exploring this November.
See if you qualify for forgiveness online now.
Rate cut relief will be gradual
The Federal Reserve issued its first rate cut in more than four years in September, reducing the federal funds rate by half a percentage point to a range between 4.75% to 5%. And additional cuts are predicted for when the Fed meets again in November and December. But unlike the September cut, most expect the Fed to cut rates by just 25 basis points in each of its final meetings of 2024. Combined with the September cut that will leave rates a total of just one percentage point lower than they were to start the year.
And while a step in the right direction, it will be proof that rate cut relief will be gradual and, thus, unlikely to lead to any material benefit for those already stuck with high-interest debt. There’s also the possibility that the Fed could pause rate reductions, too, if any new economic data released causes it to reconsider action. So if you’re depending on this to help reduce your debt load, you may want to consider debt relief help instead.
The holidays are coming
It’s easy to get into debt but particularly now, just weeks away from the winter holiday season. During this time, Americans often spend more than usual and rely on existing credit options to get through the season. In 2022, for example, the average holiday debt rose to $1,550 – the highest level in eight years. And the forecast for this season is even higher, clocking in at $2,100 right now. Understanding this inevitability, it makes sense to start reducing your debt now. And with credit card debt forgiveness, debt management programs and debt consolidation loans viable ways to do so, many borrowers may want to act now before adding even more debt to their balance in the final months of the year.
The bottom line
If you’re stuck in debt and are unsure if it’s worth pursuing debt relief now, consider the above factors. With credit card interest rates rising, rate cut relief imminent but gradual and a looming holiday season in which overspending is common, this November could be the right time to pursue debt relief. Just be sure to explore all potential options and the ramifications for each to determine which is the best path toward regaining your financial freedom.
Learn more about your best debt relief options here.
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Airlines must now give automatic refunds for significant delays. Here’s what to know.
Airlines are now required to give customers automatic refunds, under a new Department of Transportation rule that went into effect this week.
While the new regulation won’t make grappling with flight delays and cancellations less hellish, you are at least guaranteed to get your money back when an airline doesn’t transport you from point A to B as promised, without having to file any paperwork. The law is also designed to incentivize airlines to minimize disruptions, Department of Transportation Secretary Pete Buttigieg said Wednesday when the rule went into effect.
“When an airline knows that all — instead of just a few of the passengers on a canceled flight — are likely to actually get their money back, it gives them a different set of reasons to put in the investment, and the realistic scheduling that makes those cancellations less likely to happen to begin with,” he said. Flight cancellations this year are already below the traditional average of 2%, indicating the initiative is already having an effect, according to the DOT.
Here’s what airline passengers are entitled to under the new rule.
What’s a “significant” delay?
For the first time, the new rule sets a standard for what constitutes a “significant change” to a flight. Previously, definitions varied from one carrier to another. A significant change to a flight now includes a three-hour or longer delay for domestic flights, and at least a six-hour delay on international flights. If an airline changes a flight’s departure or arrival airport, or adds a connection, that also counts.
Itinerary changes
Additionally, if a passenger is downgraded to a lower class of service, or to a plane that’s less accommodating of passengers with disabilities, they are entitled to an automatic refund, according to the DOT.
Baggage delays
Baggage delays are also covered under the new rule. When passengers’ checked luggage doesn’t arrive within a reasonable amount of time, airlines must refund them any checked bag fees they’ve paid. However, passengers have to first file a mishandled baggage report with an airline. They are entitled to a refund if their luggage is not delivered within 12 hours of a domestic flight arriving at its gate, or within 15-30 hours of an international flight arriving, depending on its length.
Refunds for nonworking Wi-Fi
If you pay to use an airline’s Wi-Fi but it doesn’t work, you’re entitled to a refund to the cost of the service. Same goes if you paid to select a particular seat but were forced to sit elsewhere. These fees are typically far less substantial than the cost of the flight itself, though.
DOT’s final rule also makes it simple and straightforward for passengers to receive the money they are owed. Without this rule, consumers have to navigate a patchwork of cumbersome processes to request and receive a refund — searching through airline websites to figure out how to make the request, filling out extra “digital paperwork, or at times waiting for hours on the phone,” the DOT states on it website. “In addition, passengers would [previously] receive a travel credit or voucher by default from some airlines instead of getting their money back, so they could not use their refund to rebook on another airline when their flight was changed or canceled without navigating a cumbersome request process.”
Under the new rule, customer refunds must be issued automatically, without making them jump through hoops. They must also be issued promptly, in cash or to the original form of payment, and in the full amount of the ticket purchase price.
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3 gold investing mistakes beginners should avoid this November
It’s been hard to escape the gold price news in 2024. With numerous price records broken so far this year and others likely to be surpassed in the final two months, many investors now find themselves considering the benefits of a gold addition to their portfolio. Priced at just $2,063.73 per ounce on January 1, gold is now closing in on $2,800 for the same amount of the precious metal. And some experts expect that price to hit $3,000 perhaps before the year concludes.
While a rising price can deter some investors, others may want to buy in now while the price is still within reach. But gold doesn’t operate in the same way other asset classes do, so it will require a more nuanced and informed approach. This is particularly true for beginners just starting in the precious metals industry. Although there are important moves to make against this rising price backdrop, there are gold investing mistakes beginners should avoid this November that are equally as important. Below, we’ll detail three of them.
Start exploring your top gold investing options here now.
3 gold investing mistakes beginners should avoid this November
Considering a move into the gold market? Be sure to avoid these three timely (but costly) beginner mistakes:
Waiting for the price to fall
Not only is gold highly unlikely to drop in price (it’s up around 33% year-to-date), but it’s actually more likely to tick up again. With prevalent factors like geopolitical tensions, inflation, interest rates and more, there are plenty of supporters available to drive the price of gold higher.
Waiting, then, would be a mistake. And if you can’t afford to buy in at today’s prices, it may be worth considering a smaller amount of fractional gold. This will allow you to add the protection gold provides to your wider portfolio without having to overpay to get it.
Get started with gold online today.
Investing in a type more suitable for veterans
Gold comes in a variety of investment types and not all — or even most — will be suitable for beginners. Gold mining stocks, for example, require more knowledge of the gold market than gold IRAs often do. Similarly, gold futures could be too risky for beginners not accustomed to the wider trends of the gold investing market. Research all of your options, but be careful with which gold type you ultimately pursue. Not each will be equally beneficial for your unique financial situation.
Overcrowding your portfolio
Gold is a valuable asset in a portfolio, regardless of whether you’re a beginner or a veteran investor. But it’s just one asset in a diversified portfolio that should be made up of a variety of asset classes. So dismiss the temptation to overbuy now that the price is seemingly on a never-ending rise. Instead, keep the traditional gold investing advice of a maximum of 10% of your overall portfolio in mind. By tempering your gold investment, you’ll avoid overcrowding your portfolio, thus allowing more volatile income producers like stocks and bonds to better perform as intended.
The bottom line
Beginners looking to take advantage of gold this November, and in the months to follow, should take a smart approach to the alternative asset. This involves timing it correctly (and not waiting for an ideal drop in price to act). But it also extends to investing in the right type and not overinvesting. By avoiding these simple but easy-to-make mistakes now, beginners can start their gold investing journey off on the right foot, setting themselves up for financial success both in November and in the months that follow.