As millennials, we’ve learned about money the hard way. From the Great Recession to stratospheric student loan debt to a pandemic, there’s been no shortage of life giving us lemons.

While the long-term economic effects of the pandemic are yet to be fully realized, you may have noticed one positive trend in the short term: For once, your debt may have dropped.

Credit card balances fell by $76 billion April through June, the steepest decline on record, according to an analysis by the Federal Reserve Bank of New York. Research by NerdWallet backed that up, finding that credit card balances carried from one month to the next dropped 9.15%, or more than $600 per household with this type of debt. Overall household debt shrank by nearly $1,000 among households carrying any type of debt in the same period.

If stimulus checks, paused student loan payments and sticking close to home have helped you cut down debt, here’s how to keep that momentum going.

IT ALL COMES DOWN TO THE BUDGET

The idea of making a budget may have seemed too time-consuming or stressful in pre-pandemic times. But if you’ve taken that first step of looking at your spending and saving patterns lately — as many of us have out of sheer necessity — you’re already on your way toward building a budget.

“Take what you’ve done over the last few months and put it in a spreadsheet,” says Luke Lloyd, a wealth advisor and investment strategist at Strategic Wealth Partners in Cleveland.

You’ve probably focused on essential needs this year and sacrificed wants, or come up with creative solutions to have fun instead. Lloyd says the pandemic has made it clear that “we don’t always have to go out and spend all this money to entertain ourselves.”

The 50/30/20 budget

WASHINGTON/LONDON (Reuters) – The international community must do more to tackle the economic fallout of the COVID-19 crisis, the head of the International Monetary Fund said on Monday, publicly calling on the World Bank to accelerate its lending to hard-hit African countries.

FILE PHOTO: IMF Managing Director Kristalina Georgieva speaks during a conference hosted by the Vatican on economic solidarity, at the Vatican, February 5, 2020. REUTERS/Remo Casilli

Some of the key events of the virtual and elongated annual meetings of the IMF and World Bank take place this week, with the most pressing issue how to support struggling countries.

“We are going to continue to push to do even more,” IMF Managing Director Kristalina Georgieva said during an online FT Africa summit.

“I would beg for also more grants for African countries. The World Bank has grant-giving capacity. Perhaps you can do even more… and bilateral donors can do more in that regard,” Georgieva said in an unusual public display of discord between the two major international financial institutions.

No immediate comment was available from the Bank.

Georgieva last week said the IMF had provided $26 billion in fast-track support to African states since the start of the crisis, but a dearth of private lending meant the region faced a financing gap of $345 billion through 2023.

The pandemic, a collapse in commodity prices and a plague of locusts have hit Africa particularly hard, putting 43 million more people at risk of extreme poverty, according to World Bank estimates. African states have reported more than 1 million coronavirus cases and some 23,000 deaths.

G20 governments are expected to extend for six months their Debt Service Suspension Initiative (DSSI) which has so far frozen around $5 billion of poorer countries’ debt payments, but pressure is

A New Jersey drugmaker ensnared in the fallout from America’s opioid crisis is seeking bankruptcy protection

A New Jersey drugmaker ensnared in the fallout from America’s opioid crisis is seeking bankruptcy protection.

Mallinckrodt said Monday that it had begun Chapter 11 proceedings to restructure debt and resolve “several billion dollars of otherwise unmanageable potential legal liabilities.”

The drugmaker, one of the highest-volume opioid producers in the U.S. at the height of the nation’s prescription drug crisis, announced in February a tentative $1.6 billion settlement to avert hundreds of lawsuits. It said Monday that it plans to amend the settlement as it restructures.

Under the proposed settlement, opioid claims would be channeled to trusts that receive $1.6 billion in structured payments. Claimants also would receive warrants for about 20% of the company’s fully diluted outstanding shares, the company said Monday.

A court-appointed committee representing thousands of plaintiffs in the opioid lawsuits will recommend support for the amended agreement, Mallinckrodt said.

The company did not immediately respond early Monday to inquiries about whether the amended deal affects the amounts individual plaintiffs may receive.

Trading in company shares, which dipped under $1 for the first time this month as investors bailed out, were halted at the opening bell Monday. The stock went for well over $100 just over five years ago.

Mallinckrodt’s path through the bankruptcy courts follows that of Purdue Pharma, the maker of OxyContin, last year.

Mallinckrodt plans to slash its debt by about $1.3 billion and it will continue to operate during the process.

Source Article



Alex Cruz wearing a suit and tie smiling and looking at the camera: Alex Cruz is stepping down as the CEO of British Airways. Geoff Caddick - WPA Pool/Getty Images


© Geoff Caddick – WPA Pool/Getty Images
Alex Cruz is stepping down as the CEO of British Airways. Geoff Caddick – WPA Pool/Getty Images

  • British Airways boss Alex Cruz is stepping down, and will be replaced by Aer Lingus CEO Sean Doyle.
  • The owner of British Airways, International Airlines Group, said the airline industry was facing its worst crisis in history.
  • Cruz told a government committee in September that the airline was burning through £20 million ($25.9 million) a day and “fighting for its survival.”
  • It plans to cut 13,000 jobs because of the coronavirus pandemic.
  • Visit Business Insider’s homepage for more stories.

The CEO of British Airways, Alex Cruz, has stepped down, the airline’s parent company International Airlines Group (IAG) said Monday.

Loading...

Load Error

Cruz, who was appointed chairman and chief executive of the flag-carrying airline in 2016, will be replaced by Sean Doyle, the CEO of Aer Lingus, the Dublin-based airline also owned by IAG.

BA’s new CEO Doyle worked for British Airways for 20 years in various roles including as director of network, fleet, and alliances, before becoming Aer Lingus’ chief executive in January 2019.

IAG chief executive Luis Gallego said British Airways was “navigating the worst crisis faced in our industry.”

The airline, which employs 42,000 people, announced plans to cut up to 12,000 jobs in April. This has since been increased to 13,000. 

Gallego thanked Cruz for working “tirelessly to modernize the airline,” adding that he has “has led the airline through a particularly demanding period.” 

Cruz told a government committee on September 16 that the coronavirus pandemic “has devastated our business, our sector, and we’re still fighting for our own survival,” adding that the company was burning through £20 million ($25.9 million) per day.

Continue Reading

An empty restaurant in Montclair, New Jersey.

Photographer: Gabby Jones/Bloomberg

The U.K. risks losing jobs to the Covid crisis that could be resilient to automation while giving a short-term boost to sectors that have no long-term future.

Jobs in supermarkets, residential care and couriering have all been lifted by the crisis. Yet they face a high risk of replacement by new technology in future, according to a report by the Royal Society for Arts published Monday. That disruption is also being accelerated by the pandemic, it said.

For workers in entertainment and the arts, massive cuts are likely in coming months as the virus keeps venues shuttered. However, the industry faces little destruction from automation and had provided some of the fastest employment growth over the past decade, the analysis found.

Technology could land a second blow to a labor market already reeling from a nationwide lockdown sooner than anticipated. Five years of digital transformation occurred in just five months this year for sectors such as retail, with online sales growing as much between February and July as between 2015 and 2020, the RSA said.

Risk level Industries
High Covid 19, high automation Hospitality, sports and recreation. Parts of manufacturing, construction
High Covid 19, low-med automation Air travel, tourism, creative arts and entertainment, architecture, film production, museums and culture
Low-med Covid 19, high automation Some key worker industries such as retail, food production, residential care, postal and courier activities
Low Covid-19, low automation Scientific research, healthcare and education as well as some male dominated industries such as computer programming

U.K. Chancellor of the Exchequer Rishi Sunak last week announced new support for jobs in coronavirus hot spots that may help some. The government will pay two-thirds of the wages of workers in companies forced to close as