Top Story
Late car payments are occurring at an even faster pace than during the Great Recession.
As broad-based price increases have squeezed Americans’ wallets, many are faced with difficult choices. Car payments may be put on pause to pay for necessities like food or rent — which have raised 11.4% and 7.5% year-over-year, respectively.
US stocks finish higher on positive earnings leading into Fed meeting
• US stocks finished higher Tuesday as investors digested another round of corporate earnings ahead of today’s interest rate decision by the Federal Reserve. Notable names reporting included General Motors (GM), which surprised investors after handedly beating the Street’s top and bottom line estimates.
• The IMF upgraded its growth projections for 2023 and 2024, suggesting the global economy will slow this year as central banks continue to raise interest rates. However, the IMF also projects that output will be more resilient than previously anticipated.
• Consumer confidence fell lower than expected to 107, compared to the previous month’s reading of 109. The release, issued by the Conference Board, captures the level of confidence that individuals have in economic activity, and still points to a less-than-ideal landscape for the consumer.
What to be on the lookout for today
• The Federal Reserve’s Interest Rate Decision will be announced. The fed funds rate currently sits at 4.25%-4.5% — the highest level since 2007. At the previous Fed meeting, officials signaled their intention to lift the rate above 5% in 2023 and then maintain that level.
• Meta Platforms (META) will fill investors in on its portfolio of social media apps and construction of the metaverse. Daily active users, a key metric for Meta, was up 3% to 1.98 billion in Q3 after slipping earlier in the year. Investors will want to see if this progress continues.
Feel like you're drowning in debt? Debt consolidation is one way to help pay it down. Here’s how to know if it’s right for you.
Your financial situation is unique to you, but there are some considerations to be sure if debt consolidation is right for you.
Debt consolidation might be a good idea if…
• You want to have only one monthly debt payment. It can be a challenge to manage multiple lenders, interest rates, and due dates.
• You want to have a payment end date. Using a home equity loan or a personal loan for debt consolidation will be useful for this reason because they are forms of installment debt.
• If your credit is good enough to qualify for a zero- or low-interest rate balance transfer credit card, you may be able to consolidate multiple debts on one new credit card and save interest by paying off the balance before the promotional rate ends.
Debt consolidation might not be for you if…
• If you think you’ll be tempted to continue using the credit cards you paid off in the debt consolidation process — you may just end up further in debt.
• If using a lender outside of SoFi, you may have to incur fees (balance transfer fee or origination fee). And if they are high, it might not make sense financially to consolidate the debts.
• Consolidating your debts may actually cost you more in the long run. If your goal is to have smaller monthly payments, that generally means you’ll be making payments for a longer period of time and incurring more interest over the life of the loan.
SoFi debt consolidation loans offer fixed, competitive interest rates with terms to work with a variety of budgets. With no origination fees or prepayment penalties, the balance you transfer is the balance you repay, whether you use the entire loan term or make extra payments to pay it off sooner.
Today’s top stories
The streaming industry will get a little less crowded as Paramount+ merges with Showtime to Paramount Global (PARA) will be merging Paramount+ with Showtime’s streaming service. The new service will use the highly-unique and original name: Paramount+ with Showtime. Continual losses across the board combined with competition at an all-time high has streamers needing to go above and beyond to attract new users and start posting profits. To do this, many are consolidating their services. Read more >> Americans are getting frustrated with how common tipping has become in the wake of the pandemic. It’s no longer just a Tarantino bit. Tipping grew in popularity during the pandemic, but Americans are growing frustrated with how commonplace it has become. Here are some recommendations on when, where, and how much to tip. Read more >> The student loan debt crisis has a greater impact on Black borrowers than white borrowers amid racial wealth disparities. Learn more in this special report. February is Black History Month — a month to reflect on the achievements of Black Americans while acknowledging major challenges. Rising tuition rates and the crushing burden of student debt are among the biggest economic issues impacting Black families. Read more >>Not-So-Breaking News
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General Motors (GM) crushed fourth-quarter expectations on the top and bottom lines. Analysts viewed the results as a sign that inventory levels are beginning to normalize for the US auto industry.
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Pfizer (PFE) reported record high sales of $100.3 billion in 2022, driven by $50 billion in COVID vaccine sales. The company expects sales to decline to $67 to $71 billion next year.
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Spotify’s (SPOT) shares popped after reporting a 20% gain in monthly active users from this time last year. The music streamer now has 489 million monthly active users and 205 million paid subscribers.
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ExxonMobil (XOM) set an all-time high record for Western oil producers by reporting a 2022 profit of $56 billion profit. Last year, the oil giant made, on average, $6.3 million per hour.
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McDonald’s (MCD) beat analysts expectations for both earnings and revenue in Q4 2022. The fast food giant attributed the increase in traffic to surging inflation, which makes its cheaper food options more attractive to consumers.
Financial planner tip of the day
“An integral part of financial wellness is having a cash reserve. Research shows that having cash to cover the unexpected has the biggest impact on financial stress, anxiety, and satisfaction.”
Brian Walsh, CFP® at SoFi