Saturday,
October 21, 2023
Top Story
The week in review
• Q3 earnings season kicked off in earnest with three of America’s biggest banks reporting. JPMorgan beat expectations with a 35% increase in profits and 21% rise in revenue, largely driven by interest income and lower than normal credit costs. JPMorgan shares closed up 1.5%. Earnings from Citigroup and Wells Fargo also topped expectations.
• Fed Chairman Jerome Powell emphasized the likelihood of lower economic growth to achieve the goal of lower inflation, saying “the path is likely to be bumpy and take some time.”
• Retail sales data showed stronger-than-expected spending, rising 0.7% in September for the sixth consecutive month of growing sales. While last month was ever so slightly weaker than August sales, it still pointed to resilient consumer spending despite pressure from inflation.
For more economic news, visit On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Ways to get your debt under control
If viewing your monthly bills fills you with dread, it’s time to create a debt repayment plan.
There are several different tactics to paying down debt, and it’s important to find one that works for you so you stick with it.
First up: the avalanche method.
Figure out how much you owe and at what rate
No matter which debt payoff method you choose, the first step is to determine just how much you owe. Make a list of all your debts, their minimum payments and the interest rate associated with each one.
Take aim at the highest interest rate
Next, rank the debts from highest to lowest by interest rate. The avalanche method prioritizes paying off debts based on the interest rates. The higher the interest rate, the more you pay in the long run as interest accrues on the balance. Typically, paying off accounts that have the highest interest rate first will save you more money in the long run. So funnel any extra money on top of the monthly minimum payment into this account until it’s paid off.
Remember: Don’t ignore other debts, and continue to make the minimum payments on each bill. Once you’ve paid off the account with the highest interest rate, take the money that was going toward that bill and apply it to tackle the debt with the next highest interest rate. Continue the process, and while it could take some time, the goal is to become debt free.
