Author: Arabian Media staff

People who find themselves with extra cash can face a dilemma. Should they use the money to pay off—or at least, substantially pay down—that pile of debt they’ve accumulated, or is it more advantageous to put the money to work in investments that will grow for the future? Either choice can make sense, depending on the circumstances. Key Takeaways Investing and paying down debt are both good uses for any spare cash you might have. Investing makes sense if you can earn more on your investments than your debts are costing you in terms of interest. Paying off high-interest debt…

Bankruptcy is often described as a last resort for people who are unable to pay their debts—and rightly so. Although it is sometimes a person’s only alternative, bankruptcy has serious consequences that can follow them for years. This article lays out some common-sense ways to avoid bankruptcy if at all possible. Key Takeaways Bankruptcy is a serious step, with long-lasting negative consequences. Sometimes bankruptcy is a person’s only option, but it’s worth considering some alternatives. Ways to possibly avoid bankruptcy include cutting spending, boosting income, and trying to negotiate with creditors. Why It’s Best to Avoid Bankruptcy The two types…

If you are struggling with your finances, maxed out on your credit cards, and can’t afford to pay all your bills, you may want to consider reaching out to your lenders to see if you can settle all or a portion of your debt. Settling debt can relieve you of some of your obligations, but there are also downsides to consider, such as how it may affect your credit score. Here is what you need to know. Key Takeaways Debt settlement is an agreement between a lender and a borrower in which the borrower repays a portion of a loan…

Chapter 7 vs. Chapter 11: An Overview Companies in dire financial situations where bankruptcy is their best—or only—option have two main choices in the U.S.: Chapter 7 bankruptcy or Chapter 11 bankruptcy. Both are also available to individuals. Under a Chapter 7 bankruptcy, the business closes its doors and its assets are sold off to pay its creditors. In a Chapter 11 bankruptcy, the company may continue to operate under court supervision. Key Takeaways Chapters 7 and 11 are two common forms of bankruptcy. In a Chapter 7 bankruptcy, a business’s assets are liquidated to pay its creditors, with secured…

If you have outstanding debts, you may be able to negotiate payment with your creditors to settle the debt for less than you owe. Creditors can be amenable to debt settlement because it means they’ll receive at least partial payment. Although debt settlement can save you money, you might end up owing taxes on the forgiven debt, depending on the type of debt it was. Fortunately, there are strategies to help you reduce your tax burden for the year. Key Takeaways You can reduce your debt burden by settling debt with a creditor, but you might be required to count…

Client Challenge JavaScript is disabled in your browser. Please enable JavaScript to proceed. A required part of this site couldn’t load. This may be due to a browser extension, network issues, or browser settings. Please check your connection, disable any ad blockers, or try using a different browser. Source link

Key Takeaways Gen Z plans to cut holiday spending this year, prioritizing essentials and secondhand goods over gifts.This shift reflects broader financial stress and a growing focus on value-driven, practical spending. Generation Z shoppers are changing how they spend this holiday season. Rising inflation, tariffs, and tighter household budgets are making it harder to feel confident about money, according to recent consumer outlook reports. As a result, many Gen Z consumers plan to spend less on non-essential items, shop secondhand, and spread out their purchases over time. Economic Factors Affecting Holiday Spending Gen Z is feeling mounting household financial pressures…

Client Challenge JavaScript is disabled in your browser. Please enable JavaScript to proceed. A required part of this site couldn’t load. This may be due to a browser extension, network issues, or browser settings. Please check your connection, disable any ad blockers, or try using a different browser. Source link

Key Takeaways Private equity IPO exits crashed 46% in 2024, while sponsor-to-sponsor trading surged 141% as firms trade assets among themselves. A vast majority of pension funds invest in private equity, but many are stuck with too much money trapped in these investments The industry now has a $162 billion “secondary market” where firms sell to each other instead of cashing out. The Federal Reserve cut rates again, but analysts say cheaper money won’t fix private equity’s (PE) massive problem. Traditionally, they’d take companies public on the stock market for huge profits, but that exit door has narrowed shut, down…

Nearly 1 in 4 divorces happen due to money problems, and over 50% of people say their partner’s debt would be a major reason to consider divorce. Three in 5 would put off marriage to avoid their partner’s debt, and 35% think finances put a strain on their relationship.  While the economy is unpredictable, you can prevent some of these problems by bringing up finances before getting married, so you’re on the same page about things like:  Expectations: Who would pay for things? Major goals: Would you like to save for a house together? Key financial decisions: How do you…