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BUSINESS Wednesday 16 december 2020

Millennial Money: De-stress holiday debt with a payoff plan

By SEAN PYLES of NerdWal- expert who helps people
let understand the personal
In a holiday season that factors of money decisions.
many of us will spend apart "Ask what you can reason-
from loved ones, gift-giving ably pay off each week
might feel even more im- or each month and really
portant than usual. After work at achieving it," Burns
all, if you can't travel to see Kingsbury says. "From a psy-
family, at least you can see chological standpoint, this
them unwrap gifts over a helps you feel a sense of
video call, right? success, and the more suc-
And just as many families cessful you feel, the more
will use a video service for motivated you are to con-
holiday celebrations this tinue that behavior."
year, many will also turn to FIND YOUR PAYOFF PATH
credit cards to cover their Your best route to resolving
expressions of love. Three- holiday debt depends on
quarters of holiday shop- your cash flow, credit score
pers are planning to use and personal preferences.
credit cards to purchase Here are a few:
gifts this year, according — PAY OFF THE FULL BAL-
to a NerdWallet survey of ANCE WITH THE FIRST STATE-
2,049 U.S. adults conduct- In this Nov. 30, 2020 file photo, a shopper walks by a holiday window display in New York. MENT: If you have the cash,
ed online by The Harris Poll. Associated Press this is the fastest way to
Using credit cards can be a deal with debt — and the
great way to earn rewards OWE — AND WHAT YOU turn to your budget. The get, pin down how much cheapest, since you avoid
or get cash back, but make CAN PAY 50/30/20 budget is an easy money you can allocate paying interest. According
sure you know how to dig First, catalog your holi- template. With this ap- toward debt each month. to the NerdWallet shop-
out of the debt you ring up. day debt. Log into each proach, half of take-home Divide the total debt by ping survey, 35% of holiday
Otherwise, you might be credit account and note pay goes toward necessi- that amount to estimate shoppers who added cred-
still paying off the debt late the balance and interest ties, like housing and gro- how fast you can rid your- it card debt in 2019 took
into next year, something rate. Consider creating a ceries. Then, 30% goes to- self of debt, keeping in this approach.
33% of 2019 holiday shop- simple spreadsheet or us- ward wants, like takeout mind that accruing interest — ROLL A SNOWBALL OR
pers who used credit cards ing a debt tracker to keep or a nice bottle of Cham- can increase the balances. KICK OFF AN AVALANCHE:
said they were still doing accounts organized. If you pagne to celebrate bid- Focusing on what you can The "debt snowball" and
when surveyed in Septem- have debt that's not on a ding farewell to 2020 on pay monthly helps make "debt avalanche" are two
ber. credit card, such as a shop- New Year's Eve. Lastly, 20% your debt more manage- popular debt payoff meth-
Here's how to handle holi- ping loan from a company of your income goes to- able, says Kathleen Burns ods. Which is right for you
day debt. like Klarna, list that, too. ward debt and savings. Kingsbury, a Vermont- depends on your financial
TAKE STOCK OF WHAT YOU With your debts sorted, As you hash out your bud- based wealth psychology priorities.q

U.S., states crack down on scams bilking desperate Americans

By MARCY GORDON sweep targeting the scam- perate situation to rip
AP Business Writer mers. Consumers lost an money from the hands of
WASHINGTON (AP) — Fed- estimated $1 billion in the those who most need it,"
eral and state authori- schemes since the start of Smith said.
ties say they are cracking 2020. The FTC conducted the
down on a wave of illegal Especially vulnerable tar- sweep along with nine
schemes that have pro- gets are seniors and retir- states, federal prosecutors
liferated during the pan- ees, immigrants, Black and in Arkansas, Arizona and
demic and prey upon the Latino people, students California, several local
desperation of people and military families. law enforcement agen-
who have lost jobs in the Losses reported by con- cies, and the U.S. Securities
outbreak's economic up- sumers from the schemes and Exchange Commis-
heaval. rose to the highest level sion and Commodity Fu-
The scams have ranged on record in the first nine tures Trading Commission.
from the work-from-home months of the year at "There are people out
reselling of luxury products, more than $150 million, An- there whose job it is to steal In this June 15, 2018, file photo, 20-dollar bills are counted in
to pyramid schemes solic- drew Smith, director of the your money," Maryland At- North Andover, Mass.
iting cash and that play on Federal Trade Commis- torney General Brian Frosh Associated Press
cultural norms in immigrant sion's consumer protection said on the conference
communities, to fraudulent bureau, told reporters in a call. community members for franchises.
investment rackets promis- conference call. Officials He said his office is seeing money in addition to their In addition to Maryland,
ing quick profits. estimate only a small frac- growing numbers of cases own payment. A scam the states participat-
Regulators on Monday un- tion of the burned con- involving affinity fraud, a promoting investments in ing in the sweep are Ari-
veiled what they are call- sumers report their losses form of pyramid scheme bitcoin was among them, zona, Arkansas, Califor-
ing "Operation Income to authorities. in which consumers are Frosh said. His office also nia, Florida, Indiana, New
Illusion," a yearlong na- "These scammers are tak- urged to tap friends, fam- has brought several cases Hampshire, Oregon and
tionwide law-enforcement ing advantage of a des- ily, and church or ethnic- against sellers of phony Pennsylvania.q