Finance

Many people still struggling to juggle debts, but some financial aspects see improvement

Published

2 years ago

July 14, 2024

Press Room

Many people still struggling to juggle debts, but some financial aspects see improvement

Many Americans continue to struggle with credit and debt issues, but there have been some improvements in credit scoring, medical debts and other areas. Still, most people aren’t comfortable.

Americans are feeling a bit better about their finances in some ways, with recession fears abating but lingering anxiety over high prices. Debt, credit and spending issues have received a lot of attention lately in studies, surveys and other commentaries. Here are some recent perspectives:

Tips for keeping impulse purchases at bay

It’s tough for a lot of people to keep spending under control, whether its from online shopping or passing by a storefront. But financial author Sharon Lechter offers some simple tips that can help.

Lechter, who has authored 28 books including her latest, “How Money Works for Women,” starts by suggesting what she call the two-minute rule: Before making a sizable purchase, “Walk away from the item for two minutes,” she said. “If you really want it, go back and get it.” But often, a short break will be enough to cancel the urge to spend. You might even delay for 24 or 72 hours.

Another tip is to follow what she calls the one-in/one-out rule, in which you resolve to sell or donate a belonging for any new one that you acquire. This too helps to control spending while keeping clutter at bay.

“I have to force that one on myself,” said Lechter, a retired certified public accountant who lives in Scottsdale. “A lot of us tend to be hoarders.”

And rather than pull out credit cards routinely, Lecter suggests shopping with gift cards, with fixed dollar limits. For people who strive to get the best deals, she suggests using a price-tracking browser extension such as CamelCamelCamel or Honey. You might discover that an item isn’t such a bargain and doesn’t need to be bought immediately.

8 signs you’re on the right financial path

Money Management International, which helps struggling households deal with high debts, poor credit, unaffordable housing and other pressures, has put together a list of eight signs that point to financial success.

Four are obvious and deal with basic budget issues. They consist of spending less than you earn, always paying bills on time, having a minimum cash reserve (at least $500, the group recommends) and generally planning ahead to meet larger expenses without hoping for a big tax refund or other windfall.

The other indicators are more vague, such as having a sufficient amount of savings/assets, a reasonable debt load and appropriate types of insurance, without defining those terms or amounts. Also, Money Management International suggests that consumers aim for a “prime” credit score of at least 740, on the standard scale that ranges from 300 up to 850.

Enthusiasm for new loan type

Borrowers who have used Buy Now, Pay Later loans generally express satisfaction with them, according to a TransUnion survey of 1,200 consumers.

The loans are made at the point of sale to finance a one-time, unsecured purchase. Borrowers typically repay these loans in multiple, equal payments instead of a lump sum. More than 100 million consumers have used BNPL loans, and that could increase, according to TransUnion, which found that about half of nonusers are open to trying the loans if they had the potential to exert a positive impact on their credit scores.

Currently, information for most BNPLs isn’t submitted to credit reporting agencies. Yet including more of these loans would attract consumers struggling to rebuild their credit or have been left out of the system entirely, TransUnion said.

“Consumers deserve to have their BNPL credit included in their credit history, which could lead to more access to credit for a generation of consumers who have embraced BNPL as an alternative to traditional borrowing,” said Jason Laky, executive vice president and head of financial services at TransUnion.

Would $186,000 make you feel secure?

Americans indicate they would need to earn $186,000 annually to feel financially secure, based on an average of responses in a new survey by Bankrate.com. That’s slightly more than double what Americans earn on average, so there’s room for improvement.

Only one in four respondents said they are completely financially secure, down from 28% in 2023, according to the Bankrate poll. About three in 10 Americans predict they never will be secure. As for feeling rich, Americans in general figure they would need to earn about $520,000 a year to reach that level of comfort.

Rising prices have led to an “affordability crisis” that has eroded Americans’ sense of security, said Mark Hamrick, Bankrate’s senior economic analyst, in a statement. But cooling inflation and ample employment opportunities could help close the affordability gap, he added.

Medical debts show improvements

Medical debts remain a burden on millions of Americans, though not quite as much as they were previously.

In large part, a new Urban Institute study credits changes implemented by major credit bureaus to ease, though not eliminate, the problem. According to the institute, credit bureaus removed paid medical collections from credit reports and stopped reporting unpaid collections until they were at least one year old, compared to the prior grace period of six months. Also, medical debts in collection no longer are used to calculate Vantage credit scores, and medical collections below $500 no longer appear on credit reports.

“Medical debt has constituted most of the debt in collections on consumer credit reports for the past decade, lowering consumers’ credit scores and thus limiting their access to credit,” said the report’s authors. “The reporting changes have erased medical debt in collections from most consumers’ credit reports but do not affect the underlying debt consumers owe to health-care providers.”

In 2013, 19.5% of Americans had medical debt in collections. By 2023, that had fallen to 5%. Other favorable factors include fewer uninsured households and higher average incomes.

Reach the writer at russ.wiles@arizonarepublic.com.

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Finance

Why this sleepy Swiss town has become a ‘bolt-hole’ for the Gulf elite

Published

6 hours ago

April 20, 2026

Press Room

Why this sleepy Swiss town has become a ‘bolt-hole’ for the Gulf elite

As conflict continues to destabilise the Middle East, the Gulf States elite are seeking solace in European alternatives that offer comparable financial benefits with a far lower risk of war on the doorstep. One such destination is the small Swiss town of Zug, which is becoming a “bolt-hole” for Gulf-based wealth, said the Financial Times.

‘Swiss Monaco’

Switzerland’s reputation as a magnet for the world’s financial elite is nothing new. In 2025, the country recorded the “densest concentration of millionaires” with an estimated 146 per 1,000 adults last year, said The Times. Now home to around 135,000 people, Zug’s canton – also named Zug – used to be the “poorest corner of Switzerland” until it lowered its tax rates in the 1950s. “Now it has corporate tax rates of 16.2% compared with 40% in the US and 33.3% in France.”

“In almost all ways Zug is unremarkable”, with its traditional Swiss architecture and cobbled waterfront lanes. But if its “Alpine lake water is clear”, the financial scene is more “murky”. Many credit Marc Rich and Pincus “Pinky” Green, founders of metals and minerals trading firm Glencore, with the transformation of Zug from a “Swiss backwater” to its status as the “Swiss Monaco”. The multinational is headquartered just outside Zug, and has made the town a “global powerhouse for trading crude and refined oil products”. It should be “no surprise” that the “1% of the world’s 1%” are taking shelter there, and at the same time, hoping to still “keep a hand in the oil business”.

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“Industry estimates suggest that tens of billions of dollars could flow into Switzerland depending on how the current conflict evolves,” said the Outbound Investment Group. The “immediate trigger” for the “surge in interest” from Gulf-based investors is the war in the Middle East. However, Switzerland’s underlying appeal is its unwavering “Swissness”: “political neutrality”, “strong legal frameworks”, and reputation for wealth preservation. It’s a safe bet with no sign of slowing.

‘Availability tightening’

There are some drawbacks, said the FT. For “would-be arrivals”, the appeal of the region for Middle Eastern residents comes with “practical constraints”. Those outside the EU “face a higher bar”. Usually, the condition of residency is “tied” to employment or company formation. For the “very wealthy”, there is the added option of “negotiated lump-sum taxation agreements with cantonal authorities” that allow individuals to “pay a flat annual tax based on living expenses rather than global income”.

Even if they are holders of EU passports, the “main bottleneck” is the availability of property. Competition is “intense” and “rental supply is extremely limited, with properties often snapped up within days”. With Zug’s “availability tightening”, other cantons in the region with similar tax arrangements could benefit, such as Lugano, an Italian-speaking city in the Ticino region.

The uncertainty of the duration of the conflict is one of the most pressing concerns, said Bloomberg. The recent breakdown of ceasefire talks risks “forcing a reckoning for the professional and expat classes considering options after putting down roots in the Middle East”.

The short-term benefits of physical safety from leaving the Gulf are clear, but changing tax residency “takes time” and practicalities such as finding schools and “conforming to national requirements such as opening local bank accounts” is often “complicated and time-consuming”. The region’s ultra-wealthy are facing “uncomfortable decisions on whether to make the move permanent, especially with the end of the school year in sight”.

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Finance

How much will Social Security go up next year? See latest forecast

Published

18 hours ago

April 20, 2026

Press Room

How much will Social Security go up next year? See latest forecast

Before Social Security payments are posted this week, many retirees are looking ahead at the potential Cost of Living Adjustment for 2027 with an advocacy group predicting a similar increase to 2026.

On April 10, The Senior Citizens League — a nongovernmental advocacy group for seniors — released its monthly COLA forecast for 2027, saying data showed a 2.8% increase is likely.

“Over the last seven weeks, crude oil prices have soared, and fuel prices have followed suit. Consumers are getting pinched at the pump as gas prices soar, while businesses are paying more for transportation and/or production costs. This energy price shock is beginning to show up in the monthly U.S. inflation report, and it’s having a tangible impact on 2027 COLA forecasts,” The Motley Fool, a financial and investing advice company, and USA TODAY content partner, reported on April 18.

The official announcement will come in October, as it’s based on third-quarter inflation data.

According to Consumer Price Index data published last week, the annual inflation rate reached a two-year high of 3.3%, up 0.9% over the last month. This is largely due to soaring oil prices caused by the war in Iran.

Social Security payments are always scheduled on Wednesdays, with the final wave of this month scheduled for April 22, according to the Social Security Administration. The schedule is based on the birth dates of the recipients — retired, disabled workers or survivors.

Here’s who will get a Social Security check this week and more on the 2027 COLA forecast:

When is the final Social Security in April 2026?

Social Security benefits are sent out based on the recipients’ birth dates. Wednesday, April 22, is the final wave of payments for those with birth dates between the 21st and the 31st of April.

What is the 2027 COLA forecast?

The 2027 COLA increase is forecast to be 2.8% due to continuing inflation prices, according to The Senior Citizens League’s April 10 press release. If the SSA approves that rate of increase, average payment for retired workers would go up by $56 per month in January 2027.

The SCL releases a COLA prediction each month based on the Consumer Price Index, Federal Reserve interest rate and the National Unemployment rate from the U.S. Bureau of Labor Statistics.

Beneficiaries who want to stay updated with the monthly predictions may visit the SCL’s “COLA Watch” webpage that includes the forecast, calculations, historical trends and more.

The official COLA increase for 2027 will be announced in October 2026.

What were the big Social Security changes in 2026?

At the beginning of 2026 recipients received a 2.8% COLA for Social Security and Supplemental Security Income (SSI) payments, according to the SSA’s COLA Fact Sheet and American Association of Retired Persons, increasing payments about $56 per month.

Here are more details on the 2026 COLA increase, per the SSA:

The maximum amount of earnings subject to the Social Security tax increased to $184,500.
The earnings limit for workers who are younger than full retirement age (67 years old) increased to $24,480. (There will be a $1 deduction for each $2 earned over $24,480.)
The earnings limit for people reaching their full retirement age in 2026 increased to $65,160. (There will be a $1 deduction for each $3 earned over $65,160, until the month the worker turns full retirement age.)
There is no limit on earnings for workers who are at full retirement age or older for the entire year.

What should I do if I don’t get my Social Security payment?

According to the SSA, if you don’t receive your payment on the scheduled date, wait three days additional days, then call their office.

Where are the Social Security offices in Michigan?

There are 48 offices in Michigan, and to find an office near you, recipients may use the office locator via the Social Security’s website by entering your zip code for office hours, numbers, available services and more.

How can I replace my Social Security card?

The personal account, “my Social Security” allows recipients to manage their personal records, including a request for a replacement Social Security card and benefit statements for taxes and more. New accounts are created using ID.me or Login.gov as a multifactor authentication.

When will I get my checks in May? Full 2026 schedule

USA TODAY Contributed

Contact Sarah Moore @ smoore@lsj.com

Finance

Hong Kong reasserts role as safe haven in global finance amid Iran conflict

Published

1 day ago

April 19, 2026

Press Room

Hong Kong reasserts role as safe haven in global finance amid Iran conflict

The US-Israeli war on Iran has unleashed sharp swings across global energy and financial markets, fuelling demand for safe-haven assets, with Hong Kong emerging as a potential beneficiary across gold, property and capital markets. In the third of a three-part series, we look at Hong Kong’s position as a stable base where demand for property has held firm despite the global turmoil.

The seven-week military conflict in the Middle East will redefine Hong Kong’s role as a global financial centre, positioning the city as a safe harbour for capital and investments.

Anecdotal evidence suggested that more banks had turned to Hong Kong to protect their businesses and committed themselves to expanding their presence in the city. At the same time, inquiries about adding allocations of mainland Chinese assets among global investors had recently increased, potentially enlarging the customer base for the city’s asset-management industry and family offices and driving demand for offshore yuan-linked financial products.

For years, Hong Kong’s status as a financial centre in the Asia-Pacific region has been challenged by Dubai, which has risen to prominence as a gateway linking Asia and Europe in capital flows, transport and logistics. With the war destabilising the Middle East – at one point forcing the closure of the Dubai International Airport and sending stocks in the Gulf region plunging – Hong Kong has re-emerged due to its geographical location, a pegged exchange rate, free capital flows and support from China’s economic strength.

“In that context, China and Hong Kong are attracting renewed attention,” said Gary Dugan, CEO of The Global CIO Office in Dubai, which advises family offices and ultra-high-net-worth individuals globally. “There is growing interest among some clients in increasing exposure to China and Hong Kong. It is less a simple flight to safety and more a reassessment of where investors see relative value, policy consistency and long-term strategic opportunity.”

Dubai now relies on trade, tourism and finance as the pillars of its economy, reflecting the success of its four-decade diversification away from oil for sustained growth. The United Arab Emirates city is home to Jebel Ali Free Zone, the biggest free-trade zone in the Middle East, and the second-largest stock market in the region, with combined market values of US$1.01 trillion. The city, also a global hub for gold trading, has a population of 4 million, about 80 per cent of which are foreign expatriates. Dubai’s economy grew by 4.7 per cent in the January-to-September period last year.