“So Jerome Powell gave a strong signal that a rate cut is coming soon.”
I’ve been reading for three months that the first rate cut would come in September with two more cuts by year end so this is consistent with what the fed has been planning.
With inflation under 3%, the rate cuts are hoped to accomplish the “soft landing” the economy is on track for.
~Scamp
"Why? Because our mortgage rate is 2.75% and our investments are earning at least double that."
----
That is sound logic. it's about balance. While I still round up on mortgage payments, I don't pay as much over due to the same reason. My rate is 2.5%. I can earn 2-3 times more than that.
There has been some good advice here but as hotlvrs said, there are no absolutes.
For example, our financial advisors recommended we not pay extra on our mortgage and instead, invest the extra money.
Why? Because our mortgage rate is 2.75% and our investments are earning at least double that.
~Scamp
“ "I'm not sure how much is on it, but let's give this one a try."
And then they get the bill.”
Yup, that’s exactly the opposite of be careful and strategic.
To be clear, I pay my cards off monthly because I’m neither broke nor a fool.
Also, unlike some people here, I don’t keep much of a cash reserve. Most of my cash is only around for a short time before being converted into something else.
Good,
I think the average is around 21%.
@hot , keep it up GOOD JOB.
Some people use a credit card like a gift card-
"I'm not sure how much is on it, but let's give this one a try."
And then they get the bill.
But holy crap. 27% interest? Damn, I was just complaining that several of my cards charge 18% to19%.
All I’m saying is absolutes are never, ever valid.
To say that no one should ever use a credit card (without paying it off at the end of the month) is wrong.
The value that someone gets from purchasing with a credit card should be balanced against the cost.
My credit card company charges 27 percent. If I put $8000 on my card, and pay it off in nine months, it will cost me almost $1000 to borrow that money.
I can envision many cases where it would be worthwhile to pay that.
That’s my opinion and I’m absolutely sticking to it.
@TBR , nope I am not lying Kamala Harris is lying . Just like she said she wasn’t against fracking . She is a liar.
I put nearly everything on my credit card and use the ensuing airline miles for several trips a year. I'm a big fan of using other people's money while earning interest on my own. The sums might be negligible, but they aren't nothing. Any advantage is swamped if you don't pay your bill every month though.
"Not a whole trip, but a couple of thousand points..."
If the points are for the airline that kicks you out the door at 30,000 feet when you've reached your miles...
...happy landing.
Not a whole trip, but a couple of thousand points...
"So I'll get the laptop with interest free money, and an airline trip as a bonus..."
I'm thinking that's an aweful expensive laptop or a very cheap trip. I get that you'll get airline miles, but I'd not expect the average laptop purchase to amount to that many miles.
I currently have a couple of different offers on my cards for 0% interest for a specified time.
I am buying a new laptop. My district offers a 0% loan paid off in 12 months.
I put it on my card that gets me airline miles, and when I get the check, I will pay the CC off.
I'll write the laptop off as a business expense.
So I'll get the laptop with interest free money, and an airline trip as a bonus...
"I agree with much of the financial advice given here, however I’m not a fan of the view that credit card debt is absolute evil. It just need a to be used carefully, strategically."
I wouldn't go with absolute evil, but usury laws don't apply to credit card companies. Not only are the lower rates in the 18% range, but once you have a balance anything you put on that credit card gets charged 18% plus.
There's a local credit union that gives you 60 days interest free (instead of the 24-27 days of most banks) and then charges a more reasonable fee that is prime plus 2%. I'm pretty sure their limits are low, so you couldn't charge a car on their card, but it's a great option for their members and much better than, say, a payday loan company when you have an unanticipated expense that you can't cover in one month.
But at an average interest rate of over 22%, it's hard to make a case for carrying a balance if you aren't forced to.
@Goodenuff
Thanks for that. Any insight into what the size (percentage) of the average revision is? I don't every recall one as large as 30%, which seems newsworthy.
@Hotluvrs
Given the well over 20% annual interest rate on most credit cards, I would say the idea that people should avoid carrying credit card debt at almost any cost is pretty much universal wisdom.
So Jerome Powell gave a strong signal that a rate cut is coming soon.
Judging by the online commentary, the vast, VAST majority of people are unaware of the fact that he's a Trump appointee.
Never before in history have we had more access to FACTS... A Fact is information minus emotion... An OPINION is information plus experience. Ignorance is an opinion lacking information...AND Stupidity is an opinion that ignores a fact..
Never before have we had so much stupidity!
"She wants an unrealized capital gains tax ."
Nope.
Quit lying.
h ttps://ww w.latimes.co m/business/story/2024-08-22/harris-isnt-planning-to-tax-your-unrealized-capital-gains-but-a-wealth-tax-is-still-a-good-idea
She wants an unrealized capital gains tax . This has been brought up before it is known as a paper tax . My ranch went up 10% last year . I will pay 25% on that value increase . Even though I never sold . If it goes down oh well I lose… Most people have 401k s . You had a good year you went up 35% . You will pay 25% of that 35% in unrealized capital gains . She is also implementing a VAT type tax I think they call it a world tax . Countries across the world will all charge the same amount on purchases , this will be used for the Green New Deal.
The Harris plan.. we lets say even her own side economist with any sense..say it wont work and destructive.. pay for money sitting in ones account at 25% and then what it goes down next year do I get the money back.. lie lie lie... nuts nuts nuts!
Can you imagine the dividends from ETF's / Mutual Funds.. that pay monthly and quarterly, let alone ones own portfolio of stock or anything that pays monthly?
She doesnt have a clue how an economy and money really work.. a true socialist who wants what you have!
I agree with much of the financial advice given here, however I’m not a fan of the view that credit card debt is absolute evil. It just need a to be used carefully, strategically.
"The Labor Department has revised the job creation numbers for March 2023-March 2024 downwards....by 818,000. That's eight hundred eighteen thousand. How the hell do you make an error that large (roughly 30% of the 2.7 million jobs created in that time rame)?"
The initial figures come from a sampling of a limited number of employers by the DOL. In short, the initial figures do not include all employers in all industries.
A more thorough report occurs after an audit which includes analyzing tax data. The tax data is not available until long after the quarter as employment tax filings/reports lag behind a given quarter by as much as the nest quarter- 3 months. Which means the actual figures for the 1st quarter ending March 31 are not compiled/audited/analyzed until the end of July.
Discrepancies are not uncommon and are actually typical. That said, the discrepancy in the 1st quarter 2024 reports is significantly larger than in hs historically occurred in previous quarters/years. Also the final, most accurate figure won't be available until next year. The difference may be even worse or could be better tan the latest revision
You'll have to talk to the statisticians and the people at the DOL about their method.
You investors better get ready if Kamala becomes president . You will pay an annual capital gains tax on how much your investments go up. ..Your house , every year it goes up . You will pay unrealized capital gains annually.
Your securities , you will pay ..even if you don’t sell.
@Travelers , here are two for you …It is not about how much you make , it is about how much you spend . Always
Pay yourself first . .
