admin – Page 18 – Financial Helpers

Young Adults with Student Loan Debt are Poorer than Originally Thought

Written by adminAugust 28, 2019

Many people have questioned whether canceling all student debt is the answer to the crisis going on right now. Currently in the United States, 44 million people owe $1.53 trillion. This is a crisis that is getting worse and is expected to hit the $2 trillion mark very soon. It’s causing a major problem in the lives of young adults who are struggling to make it.

A new survey conducted by Consumer Finances took a look at who was more impacted by the crisis and it turns out that young adults are being impacted more than anyone realized. Is forcing many millennials to move back home with their parents after they graduate college. This new analysis of the data finds that we overestimated exactly how much money these young adults are making after college.

As you can imagine, people living at home have more spending money than those who are struggling with their debt and living on their own. By living at home, they don’t have to worry about rent and other major bills because their parents are taking care of the finances. But, if they were living on their own, the data would reveal that the younger generation is poor.

Do We Have It All Wrong?

Matt Bruenig is the founder of a progressive think tank called the People Policy Project. Bruenig said in an interview that “the debate raging over whether recent proposals from Senators and Democratic presidential candidates Bernie Sanders and Elizabeth Warren unfairly benefit the well-off are on shaky ground.”

“If we’re going to basically talk about how fair the student-debt forgiveness plans are and your notion of fairness has to do with whether it is distributively equal,” Bruenig said. “You have known what the distribution is and this data source does not allow you to know this distribution very well.”

One of the biggest complaints about offering complete and total student loan forgiveness is that it would benefit many wealthy people. Not everyone going to college is poor or comes from a lower-class background. You have many Ivy League schools full of students with millionaire and billionaire parents who can afford to pay for their kid’s education.

It’s mostly the poorer students who are taking out student loans to afford to get a degree and make life better for themselves. So, the argument that wealthy people would benefit from student loan forgiveness might not have any place in reality. It would mostly impact the lower-class who would then have an easier time finding a job and moving out on their own after they graduate.

Presidential Candidates

So far, most of the Democratic candidates running for office in 2020 have offered their own plans and ideas for offering student forgiveness. Each plan is progressive and effectively helps young adults in this area. President Trump, on the other hand, has done very little to curb this problem.

He has recently signed an executive order making it easier for disabled veterans to get their student debt completely wiped away, but otherwise feels it’s unfair for taxpayers to wipe out a $1.53 trillion debt. He says if you take out student loans, that’s a decision you made and others shouldn’t have to pay for it. We’ll have to wait and see what the future holds for this growing problem.

Written by adminAugust 27, 2019

Student Loan Consolidation

It doesn’t seem to take much to force economy in a downward spiral. A lot of the great depressions and recessions of our economy happened in a single moment. The stock market can tank and bubbles burst and there’s really very little anyone can do about it. There are often a few indicators, but they aren’t always accurate.

Even if there is a recession, no one knows how bad it will be. It might not result in job cuts, but economic growth can slow down tremendously or even stop for a period of time. But if it is a bad recession, is your job at risk of being cut? Could you lose your position? Are you prepared for the next downturn to hit?

Make no mistake about it, the next recession is going to happen. The media is currently fueling speculation that a recession might hit soon, especially if the trade war doesn’t end in a timely manner. Let’s take a look at several indicators that would determine whether your job might be at risk.

Are You A New Employee?

Companies don’t necessarily go bankrupt during a recession, but if people are struggling and are not buying enough products, that means that business is going to slow down. When profits start going down, this is when bosses start getting really antsy and nervous. Jobs might be cut and layoffs happen when profits aren’t as strong as they should be.

Usually the first ones out the door are the newest hires, especially if you were just hired in the last three months. Companies spend a lot of money recruiting people, training them, and even offer a lot of perks to attract good workers. In the event of an economic downturn, these are the people who will lose their job first.

Recent College Graduates

If you have a bachelor’s degree or above, you’re more likely to keep your job. You’re more highly skilled than someone who came in off the street. But this factor is really determined by how long ago you graduated. Young college grads are most likely the very first to receive their pink slips. This is because they do not have as much work experience as someone else who has been there for several years.

Harry Holzer is an economist with the Brookings Institute and looked at the people who get hit the hardest during a recession. The answer is almost always young college grads. They have a degree and loads of student debt. This is what fueled the student loan debt to hit over $1.53 trillion mark during the Great Recession.

“Young people get hit the hardest during a recession and that will include young college grads. It will take them longer to find any job, and it will take longer for them to find the jobs they really like in terms of beginning a career,” said Holzer.

People who are new to the labor market “are most vulnerable to economic shock, by comparison, to people who are more established in their careers,” says Hamilton Project policy director Ryan Nunn. They “may have a more durable relationship with a particular employer and maybe can ride out the recession a little more easily.”

If you’re young, you have more concerns about keeping your job. Having a degree won’t save you when it’s time to make cuts. You are still green and need to gain more experience to be a safer choice to keep under their wings. Be diligent in the good times and you’ll thrive during the difficult times.

Written by adminAugust 27, 2019

Student Loan Consolidation

If you’ve ever met your significant other online, you’re part of a growing movement of people who are finding love the same way. According to a new survey, online dating has become the most popular way for couples to meet each other in the United States. This is effectively replacing what was once considered the traditional way of finding love.

As people are spending more time online for social networking, it’s not uncommon for them to find lots and start relationships with people who they met online. Facebook and other social media outlets are one way. Tinder and eHarmony are other ways. Apps, networks, and other forms of digital conversations are taking over how relationships are formed.

This is all thanks to a new study that was published by Michael Rosenfeld, a Stanford sociologist who looked at the data. This particular study was published officially this week but it looked at data compiled back in 2017. Rosenfeld found that as many as 39% of heterosexual couples met online. This is in contrast to only 22% of couples who met online in 2009.

Outpacing Traditional Forms of Meeting

39% might not seem like a lot, but it’s a number that is higher than other traditional forms of meeting someone. Online dating has become the most popular way to meet your significant other. Rosenfeld has been studying this topic for two decades and has watched very carefully the shift that’s taking place.

The more traditional method was being introduced to someone via a friend of family member. Meeting through a third person has declined quite a bit over the past few years. It’s the trust in the technology that has shifted the course. You get to know more about a person from online interactions rather than blindly being set up or meeting someone by happenstance.

“People trust the new dating technology more and more, and the stigma of meeting online seems to have worn off,” said Rosenfeld.

“In 2009, when I last researched how people find their significant others, most people were still using a friend as an intermediary to meet their partners,” he said. “Back then, if people used online websites, they still turned to friends for help setting up their profile page. Friends also helped screen potential romantic interests.”

Rosenfeld Never Thought This Would Happen

After many years of studying relationships and how people meet, Rosenfeld never thought he’d see the day where the more traditional way was ever supplanted. But it happened. It’s really our reliance on technology that has changed the way we do everything. It has impacted numerous industries over the years and dating is one of them.

“That’s an important development in people’s relationship with technology,” he said. “The rise of the smartphone took Internet dating off the desktop and put it in everyone’s pocket, all the time. Also, the online dating systems have much larger pools of potential partners compared to the number of people your mother knows, or the number of people your best friend knows. Dating websites have enormous advantages of scale.”

“Ultimately, it doesn’t matter how you met your significant other,” he said. “The relationship takes a life of its own after the initial meeting.”

Written by adminAugust 27, 2019

Uncategorized

There’s clearly no love between Elizabeth Warren and Pres. Trump as they differ in just about every issue. The president recently did something that Warren wasn’t too happy about: hiring Robert Cameron as the newest student loan ombudsman. In fact, the move angered her so much that she sent three letters to the Consumer Financial Protection Bureau, Treasury Secretary Steve Mnuchin, and the newest ombudsman himself.

Warren claims that Cameron is scandal-plagued, corrupt, and should never be the newest student loan watchdog. This position was created solely for the purpose of protecting students who take out student loans. There’s a lot of predatory behavior in the student loan game is minds Americans have been suckered in by false ads and scammed by their lender.

It’s the job of the ombudsman to gather together all the complaints and help settle any disputes that have occurred. But according to Warren, Trump chose the wrong person for the job as he himself has a history of corruption within the industry. It’s also Cameron’s job offer advice to Congress, the Treasury Secretary, and even the CFPB on how to improve how the student loans are done.

The Burden of Debt is Crushing

Currently in the United States, 44 million Americans owe $1.6 trillion in student loan debt. This is a major burden and a crisis that is hurting our economy as crushing our young adults who are attempting to get started in life. The last thing they need to do is to graduate tens of thousands of dollars in debt.

Studies have come out revealing that many young Americans are putting off major life decisions such as getting married, buying healthcare, starting a business, saving for retirement, and even having children. Many are choosing to move back in with their parents because they simply cannot afford to pay their student loans and live on their own.

Chairman of the Federal Reserve, Jerome Powell, testified in a hearing that the student loan crisis could cause long-term ramifications and even drag on the US economy in the future. Student loan debt has become a major talking point among 2020 presidential candidates. Warren is one of the candidates who wants to eliminate almost all of the student loan debt out there, mostly for lower income borrowers.

In Warren’s mind, appointing Cameron to the position is “mind-boggling.”

“A former PHEAA executive’s appointment to the role represents the worst form of revolving-door corruption and conflict of interest, and it epitomizes industry capture of our government. Given Mr. Cameron’s responsibility for PHEAA’s compliance with federal law, regulations, and programs, and PHEAA’s record of compliance failures, it is clear that student-loan borrowers cannot count on Mr. Cameron to uphold their interests,” she writes.

Warren then called on Secretary Mnuchin to deny Cameron’s appointment. Whether he will listen is probably doubtful.

Written by adminAugust 27, 2019

Student Loan Consolidation

There’s no doubt that President Donald Trump can’t stand our current trade situation. In fact, he’s rallied on what he terms ‘unfair trade practices’ since he first announced he was running. He’s mentioned China numerous times in his speeches, a country known for ‘dumping’, a practice used to grab a greater share of a particular market.

It’s no surprise to anyone paying attention that Trump would slap tariffs on imports to get the American economy rolling again. That’s exactly what he did this past week, adding a 25% tax on all imported steel and 10% to aluminum. The purpose of this tariff has a noble cause: to help give a boost to the American steel industry.

The way it works is simple. American steel costs more money to produce, considering we pay workers a fair wage compared to countries like China. If China can make steel and sell it cheaper, then industries will always choose Chinese steel over American. This hurts portions of the country that rely on the steel industry to survive.

By imposing a tariff on foreign steel, it becomes less affordable to American companies who have no choice but to go back to using American steel for creating everything from cars to machines to building materials. If more industries switch back to buying steel from the U.S., the increased demand means more jobs.

“I want to bring the steel industry back into our country. If that takes tariffs, let it take tariffs, OK? Maybe it will cost a little bit more, but we’ll have jobs,” President Trump said this week. The problem is, what should’ve been good news for the American steel industry, was bad news for the stock market, which plunged more than 500 points on March 1^st.

American Steel is Still Expensive

While no one is against a move that would potentially boost jobs and revive a dying industry, there are several reasons why Wall Street isn’t happy about this move. The first is the cost of American steel. Making foreign steel 25% more expensive does nothing to lessen the cost of industries now switching back to U.S. produced steel.

This means the price of steel is about to go up, and the consumers will bear the brunt of it. President Trump wants what he calls “free, fair, and smart trade”, but pushing the burden back on consumers might not be the smart way to go. This also threatens the stability of other industries.

Usually when a country imposes a strict tariff, those countries fight back with tariffs of their own. There’s nothing that will stop China from retaliating, and the threat of a trade war is too much for an economy that is still recovering. No one knows where this will go, but regardless of what happens, you can expect steel prices to rise over the next few years.

Written by adminAugust 23, 2019

Business

Amazon is currently king of the hill, but will it face contention from two old rivals?

For decades now Amazon has dominated the e-commerce space and the cloud in the US market. “Amazon doesn’t worry about anything that anybody else does, ever,” said Jon Reily, an e-commerce strategist at Publicis Sapient. “Amazon doesn’t look quarter to quarter or year to year – they do what they are going to do.”

It may seem that Amazon has nothing to worry about, but strong second-quarter earnings results from two of their old retail rivals may give Amazon cause to start looking over its back.

Call Now 844-332-2079

The Competition Continues

The two rivals are no other than Target and Walmart, who are quickly catching up in terms of updating their services to cater to the modern shopper. Their goal, to offer a seamless experience both online and in their thousands of physical stores, in order to drive strong sales and profits.

On Wednesday, Target reported second quarter adjusted earnings of $1.82 a share which soundly beat forecasts of $1.62 a share. Their physical store sales also rose 3.4% ahead of estimates of 3% growth. Target attributed half of this growth to their order pick up, drive up and Shipt services. Online sales also surged 34% during the same quarter.

Target has been stepping up their game, remodeling hundreds of their stores and expanding their grocery departments. This results in increased foot traffic, which takes away from online shopping on Amazon.

In a conference all with analysts, Target CEO Brian Cornell said, “We are seeing our Target guests visit us more frequently, shop more categories. They are enjoying the changes we have made in the store experience, but they are also taking advantage of the convenient fulfillment options that we are offering.”

If Wednesday’s results are anything to go by, Target will be on schedule to see its adjusted earnings exceed current expectations of $1.16 per share to $1.24 per share.

Walmart also saw substantial growth this quarter.

Their earnings exceeded forecasts by $0.05 per share, as well as increasing in-store sales by 2.8%. Their online sales surge was much more impressive, registering an increase of 37% at Walmart US and 35% at Sam’s Club.

Walmart CEO Doug McMillon believes that the company is well positioned to use their vast network of supercenters to deliver an omni-channel experience for their clients.

“More than ever, we’re innovating across the business. We’re experimenting with emerging technologies to improve store operations and reduce friction in our customers’ lives,” McMillon said. “The initiatives we have underway provide extended access to our brand and position the company to earn a greater share of our customer’s wallet over time.

The Future of Retail

The pool of online shoppers is immense, and provided that retailers offer the stuff that people want they stand to profit. The internet stands to be a goldmine for retailers for years to come.

What is happening at Target and Walmart are two well-capitalized companies with the best organizational talent they’ve had in years. Their talent is moving quickly to leverage their respective companies to get products and services to consumers faster than ever. They are anticipating the future of shopping, instead of playing catch-up to Amazon like they have done for decades.

Their past reactionary mistakes as well as the smartphone allowed Amazon to take root. Now it’s time for Amazon to realize that Target and Walmart are rising legitimate threats with strategically placed stores and the talent to match. They need to get serious about opening physical brick-and-mortar stores offering more services and also clean up their cluttered website if not their competition will quickly close the gap.

Call Now 844-332-2079

Written by adminAugust 20, 2019

Real life

According to several sources close to President Trump, he has, on more than one occasion, floated the idea of acquiring Greenland to make it a U.S. territory. Maybe it was just a joke, or perhaps it’s an idea he has regularly considered to be a realistic possibility. Either way, there’s no doubt that the real estate mogul has eyes on Greenland for many reasons.

Currently, Greenland is a Danish territory and has been part of the Scandinavian heritage ever since Vikings first landed there over a thousand years ago. The president has asked his advisors on more than one occasion, mostly as dinner talk and in passing, what it would take for the U.S. to take Greenland under our wing.

The advisors were said to have been listening with a certain amount of interest. Greenland has vast natural resources and is situated in an important location, so there’s geopolitical significance. It wouldn’t be a dumb idea, but whether it could actually happen is another thing. Still, Trump was said to have asked his advisors to look into the idea, so we know he’s at least semi-serious.

Greenland’s Response

Greenland is the world’s largest island and is made up of mostly ice. It has a tiny population of just 56,000 and self-governs while being a part of the Kingdom of Denmark. Its own government makes the decision on domestic issues, but whether Greenland becomes a part of the U.S. is up to Copenhagen, Denmark, where the true seat of power is.

Greenland’s foreign ministry made a tweet today in response to the news. They stated that Greenland is open for business, but it’s not for sale. They then went on to list all of the amazing natural resources Greenland has to offer in a bid to increase tourism and perhaps some more lucrative trade deals.

With that being said, Greenland is an important defense partner with the United States. They have a signed treaty that goes back several decades and it allows the U.S. nearly unlimited troop access to America’s northernmost base around 750 miles above the frigid Arctic Circle. The base is Thule Air Base and houses the U.S. Air Force Space Command and others.

The U.S. isn’t the only country trying to get a foothold into Greenland. China has also been after the country’s rich natural resources. The Trump administration has been looking at ways to prevent China from getting their talons in and taking what they want. China attempted to finance three airports in Greenland, but the Pentagon was able to block it from happening.

Whether anyone would be able to take Greenland from Denmark is questionable, but there will certainly be an increase in attention as more countries look for better resources.

Written by adminAugust 20, 2019

Business

You may have your mind set you’re ready to start a business, but you’re not entirely sure about where to go from there. Do you start your own business or become a part of a franchise? It’s not an easy decision. If you find yourself in that spot, here are 7 questions you need to ask yourself before getting started.

1) What does the competition look like?

One of the greatest barriers you’ve have to maintaining a healthy, successful franchise is your competition. Not only will you be worried about settling matters within your own industry, you’ll have to keep them down and outsmart them at every turn. They will take some of your anticipated profits and leave fighting a war you may not be ready to fight. Unless your franchise has a noticeable advantage, the best decision would be to walk away.

2) Will it be difficult to hire competent workers?

There are a lot of challenges that come with hiring workers you may not be aware of. A lot of franchises will require you to hire employees at a certain wage, typically $20,000-$30,000 per year. But where are you going to find those employees? If you live in a rural town, it may not be so difficult to find the necessary labor. A wealthier place with a higher than average salary may make that task more difficult. Can you still achieve a return on your investment if you’re paying higher wages to fit the location?

3) Does the franchise management have their stuff together?

It’s obvious that you don’t want to get involved in a franchise that doesn’t have a good management team. Have their key players been with the company a long time? Is the director a 22-year-old kid being employed for the first time right out of college? How much experience and success does the management have? These are all things to consider.

4) How long will it take me for me to break even?

When you invest in a franchise, there are a lot of up-front fees you must pay. There’s territory fees, training fees, taxes, start-up fees, advertising, security deposit on the lease, etc. You must be completely prepared, even for unforeseen expenses in order to stay afloat. Try to aim for having enough money saved up to carry you for 2-3 years. Any less than that is too risky.

5) Is the franchise growing and healthy?

Even the best companies with wide-reaching popularity can struggle and have down periods. It’s even possible that a particular franchise loses its luster and is on the beginning stages of a downward spiral. In any case, it’s a good idea to consider not just the franchise itself, but the health of the company as a whole. How is the turnover rate? What is the geographic distribution? Is that franchise model too outdated? These are all the questions you need to ask before investing.

6) How easy will I be able to get out of my contract?

If things start to go south and you no longer feel confident about your ability to continue to run the location, you may have an opportunity to get out of the contract. Maybe you did your best and it just didn’t work out. Or an illness keeps you from continuing. Either way, some franchisors will let you go sooner, based on a few conditions. For example: as long as you agree not to set up a competing business or agree to release them from liability.

7) How strong financially is the franchise?

The franchise is required to let you in on their financial statements, which will help you decide if they are strong enough to make franchising worth it. Obviously you’d want to work with a company that not just survives, but thrives and will partake in reinvesting in the support and training of their franchisees. And don’t just look at the reports, but ask an expert to look over them as well so you don’t miss a thing.

Written by adminAugust 20, 2019

Student Loan Consolidation

As student debt continues to rise dramatically in our country, more and more borrowers are getting fed up with the current system. Teachers in particular are so angry that they’re suing the federal government. Not only are they frustrated with their low pay, they also feel as if the current public service forgiveness program is broken.

The federal student loan forgiveness program was designed to give public service workers, like teachers, a leg up on paying off their student debt. Yet, as soon as the Trump administration took over, the vast majority of applicants have been turned down and offered no forgiveness.

Because of these frustrations, teachers all over the country are suing the Department of Education. One group in particular, the American Federation of Teachers, has stated that the student loan forgiveness program isn’t functioning properly and it desperately needs to be fixed. This is the second-largest teachers union in the country.

“The very agency that is supposedly the champion of our nation’s education system has failed to live up to its role in administering this Program,” asserted the lawsuit, which was filed in July.

Teachers Are Feeling the Heat

This is particularly difficult on teachers, as they are often expected to continue their education. Most have to take postgraduate degrees in order to maintain their teacher status. This combined with low pay and increasing tuition is putting teachers in a very difficult position. Many even feel embarrassed have student debt.

“Because the thing is, I went to school, I went to college, I wanted to become a teacher. I took loans. And now I’m paying $600, $700 a month right off the bat every month for my student loan… it’s a horrendous situation for them to be in,” said the teacher’s union.

On top of that, “everybody talks about it,” added Mulgrew. “You hear all the politicians talk about it. But the idea that they passed the student loan forgiveness federal program, and in reality, nobody gets to use it — that’s insane.”

Low Pay

Deciding to become a teacher is a very noble task. They really take a lot out of themselves to serve our community and our children with very little resources and even less pay. Nearly 65% of teachers have shared that they have student debt and it’s causing many problems in their lives.

“Teachers have a lower median income and are taking on student debt at a higher rate than the three other industries involved in our survey,” Kyle McCarthy, head of growth at Fishbowl told Yahoo Finance.

“On top of that, over 96% of teachers are spending their own personal money to provide underprivileged students with the school supplies they need, leaving teachers with even less disposable income,” he added. “It’s a good example of the growing wealth inequality in our society today.”

Written by adminAugust 20, 2019

Travel

Greenland is the world’s largest island and last Sunday, Pres. Trump stated that he has been considering and discussing buying the island using it as a US territory. Currently, the ice capped island is owned by Denmark. This is the first time that the United States is tried to buy Greenland. We tried in both 1867 in 1946, both times obviously unsuccessful.

In 1946, the U.S. offered $100 million, or $1.3 billion if you look at it today. That’s a large chunk of change, there’s no doubt Greenland would be worth a lot more today. There are a lot of questions and concern about Trump’s interest in the island. Some say it’s a political stunt to distract from more pressing issues.

Officials in Greenland say that the island is up for sale. “We are open for business, but we’re not for sale,” Greenland’s foreign minister Ane Lone Bagger told Reuters. Still, we don’t expect Pres. Trump is going to back down when he really wants something. Greenland is in a very geostrategic position that can help American interests and provide invaluable defensive opportunities.

The U.S. In Greenland

Currently, the United States already has a military base on the northwestern coast. It’s called the Thule Air Base and it’s our military’s most northern base as it’s the only one we currently have above the Arctic Circle. Despite this, what would it cost the United States to acquire Greenland?

Rutgers University economist Jason Barr has looked at the cost. He states that the value would depend on a bunch of different factors, including why it’s being bought. There’s only about 20% of the island that’s not covered by an ice sheet, so what would be the plans for the remaining land?

A previous estimation looked at the value of buying Manhattan, which would cost $1.74 trillion simply due to the value of vacant land-parcels and their sale costs. Greenland would be a completely different value since it’s mostly consistent of ice and has very little people living on it. It’s nowhere near as developed as Manhattan.

“It’s easy for Manhattan, because Manhattan is real estate. There’s no gold beneath the streets unless somebody drops their ring,” Barr said. They will have to look at several factors, one of them being the size of the island and the natural resources one could find there.

Greenland’s Value

Greenland is as large as three states of Texas, but has a meager 57,691 people living there. The labor force is small and the population is declining because Greenland really isn’t somewhere you want to live, even if your ancestors were Vikings. But the great potential is there due to many rare-earth minerals, iron ore, and uranium. Greenland has a lot of fish and shrimp exports.

It’s unknown what the total costs would be, as that’s a deal the U.S. would have to strike with Denmark. Depending on how they viewed President Trump, if any offer was given, it would be a ridiculous price in the trillions of dollars.

Author Archives: admin

Recent Posts

Recent Comments

Categories

Become a member

Popular Posts