5 Things you Should know About the Economy of Greece

Greece is one of the European countries that have been struggling economically recently. The world financial crisis has shaken many countries, but Greece seems to be slow in recovering. Here are some of the things you should know about the economic condition of Greece.

They leave the eurozone

Greece has voted ‘no’ in the eurozone. This might have a number of consequences. Initially, Greece will suffer for a short time. The Greek government thinks that it is the best way to revive its depressed economy. Introducing new currency means that the export will increase due to the low price of goods and more tourists will be attracted due to cheap vacations. On the other hand, some experts think that Greece will be in a dangerous situation. The price of products will increase, imported medicine will become scarce. Many people may get into poverty. So, there is still uncertainty about the economic condition of the country after they have left out from the eurozone.

Banks are closing

 Recently, the government of Greece has missed a payment to the International Monetary Fund. This has created the risk of many banks getting closed. They might even be forced to leave the monetary union for missing the critical payment.

Unemployment

The unemployment rate of Greece is much higher compared to the other European countries. This is affecting the GDP of the country. The government should encourage more investment opportunities so that job market can be created for the people of Greece.

Social security tax

The social security tax is high in Greece compared to the other countries. Also, the government finds it difficult to collect taxes from people every year. There must be reform in this sector in order to improve the economic condition of the country.

Huge debt

The banks are in huge debt now. They need to find ways to pay off the debt. More deposit must be collected and the money must be invested in profitable ventures. Once the banks become debt free, the economy of the country will become stronger.

Banks play a huge role in the development of the economy of a country. There must be reforms in the sector so that the banks can contribute positively to the economy of the country. The long-term impact of Greece leaving the eurozone is still unknown. The government is hopeful that it will bring some good results for the country. Once the unemployment rate decreases, more investments occur and the banks become debt free, the economy of the country will improve.

Top 7 Reasons Why People Switch Banks

The banking sector has grown considerably. There are lots of commercial banks now offering different products and services to the customers. The industry has become very competitive. People also now shop around to find a better deal when it comes to opening an account. They switch banks for the following reasons.

High-interest rates

Some banks offer very competitive interest rates on the savings account. This lures customers to switch banks. They try to get as much money as possible from their savings. So, they switch to a bank offering a better interest rate.

Low Fees

People shop around and try to find out the bank that has low fees. So, whenever they come across a bank offering low service charges, they switch to that bank.

Benefits and rewards

Some banks offer benefits and rewards like ID fraud assistance, gadget, breakdown cover, travel or phone insurance, etc. If someone travels often or has the habit of losing a phone then these benefits will be important for that person. So, they switch to banks that offer such benefits.

Cashback

With cashback offer, you can earn a lot of money at the end of the year. People usually spend money in shops and there are many shops that offer cashback. So, if you choose to shop in only those stores providing you the cashback offer, you will benefit at the end of the year. Some banks will give you bonus cash back offer to switch to their bank.

Overdraft

We often spend more than our budget and overdraft can be very helpful during those times. Sometimes, companies may delay in paying your salary. You can use your overdraft to run your family during that difficult time. So, the higher amount of overdraft a bank offers, the better it is. People switch to banks that offer a certain amount of overdraft for 0% interest.

Customer service

It is very important for banks to provide good customer service; otherwise, people will switch to other banks. If people can’t contact the customer service department promptly or cannot get their problems solved fast, they switch to banks that provide a better customer service.

Location and ATM facility

Banking convenience is an important factor for choosing a bank. A person will like to have an account in a bank that is located in a convenient location. The ATM facility should be readily available. If a person finds that it’s difficult to take out money due to location then they will switch their bank.

As there are many reasons why people switch banks, the banks need to improve their service and offer innovative products to the customers. They will constantly have to find ways to attract clients in order to increase their revenue.

6 Ways you can Manage your Money in a Better Way

Money is something that people need in order to survive. But many people find it difficult to manage money. They get into the habit of spending more, going into debts and failing to come out of this complex situation, especially when they engage in bad practices or are unable to control their money and blow it all on a luxury car rental in Miami. However, there are some easy tricks to manage your money and lead a peaceful life.

1. Have a savings account with high-interest rate

Most people have a savings account, but they rarely check the interest rate they are getting. There are many banks today that offer five times more interest rate than the national average. You should do some shopping and find out which bank is giving more interest rate on the savings account and open an account there.

2. Consolidate your accounts

Having too many accounts can cost you money. The annual fees for some of the accounts can be high. So, you can consolidate those accounts and make them into one. That way, you will be saving money. Some bank will offer you free service charge if you keep a balance of a certain amount all the time. It will also be easy to manage one account.

3. Set up a budget

You must observe your spending for a month. See how much you need to pay your bills and how much goes towards other expenses. Then set up a budget for next month and try to stick to it. That way you will be able to manage your money comfortably and will be out of debt.

4. Use cash

Having too many credit cards can be bad. You will feel the urge to spend more money and use credit card always to purchase things. So, try to use cash all the time. That way you will be able to keep track of your money all the time.

5. Do balance transfer

If you have too many credit cards and have balances on those cards which you find hard to manage every month, then you can do a balance transfer. Choose a card that offers low-interest rate. The balance transfer is usually free. So, now you will need to manage only one debt account.

6. Track your expenses

You should track your monthly expenses, especially if you have high-ticket items on your list like a Range Rover rental in Dubai. Sometimes, we sign up for credit cards or upgrade our cable or internet deals unnecessarily.Find out whether these deals are necessary. If not, cancel them or downgrade to a suitable package. Lower the number of bills you have to give out the better it is.

You will have to simplify your lifestyle in order to manage your money comfortably. If you spend wisely and stick to your budget all the time then you won’t have to deal with any debt and managing your money will become easy.

Top 6 Tips for Getting out of Debt

According to a recent consumer survey, two out of 5 households in the US are in debt. This statistics is a bad sign and indicates that people are struggling to lead a financially sound life. Some people are paying off the debt amount every day, but there are others who are struggling to do so. If you are in debt and struggling to pay off the money then here are some tips for you.

Pay more than minimum every month

If you pay only the minimum every month, it will take a long time to pay off your debt. You might end up paying triple the amount you borrowed from the credit card originally. So, you should try to pay off more than your minimum amount every month and pay off the entire money within a short time.

Stop taking more debts

Some people get into a never-ending circle of debt because they keep on taking more debt while they are paying off the money for their previous debt. This will get you nowhere. So, you should stop taking further debts. If necessary, you should freeze your credit cards.

Create an emergency fund

You should have an emergency fund and you must deposit money into this fund every month. So, whenever you will require money for any emergency purpose, you will be able to use up the money from the emergency fund. This way you won’t use your credit card or apply for other loans.

Negotiate lower interest rates

If you have a good credit history you can negotiate with your creditor to lower your interest rate. When you pay the minimum amount every month, most of it goes to pay off the interest; the original amount still remains. If you can get a low-interest rate then you will be able to pay off your debt fast.

Deal with one credit card at a time

If you have multiple credit cards, then it’s better to deal with one credit card at a time. So, keep on paying the minimum charges for the other credit cards and pay more money on the card that has the highest interest rate first. That way you will be able to get out of debt quickly.

Credit counseling service

If you think that you are having a difficult time managing your credits then you can consult a credit counseling service. They can negotiate a lower interest rate for you with your creditors and make a plan so that you can slowly pay off all your debts.

These are great tips for getting off your debt fast. You should try to be debt free in future. You must spend according to what you earn. That way you will be saved from the burden of debts.

6 Smart Ways to Invest your Money

As you keep on working your salary increases over the years, you get increments and other benefits. Many people like piling up their money in their savings account. However, they don’t realize that they are earning very low interest by keeping their money there. Instead, if they invested their money elsewhere they will be able to get a good return. Here are some smart ways to invest your money.

Stocks

Though stock market is volatile, you should spend money in this market to get good returns. You should have good knowledge about the market and keep track of the prices of stocks. You should buy more stocks when the price is low and buy less of them when the price is high. Over time the price of your stock will increase in value and you will be able to earn a lot of money.

Bonds

If you don’t want to take much risk with your money then it’s better to invest in bonds. You can invest your money in a government or private company and get some interest for the money you have lent them. If you invest in long-term bonds then you will get a higher return.

Gold

The price of gold keeps on increasing, so it’s a good investment. You can stock up gold and sell them when the price is high, when necessary. You can invest in gold mutual funds, gold deposit schemes or gold Exchange-Traded Funds.

Real estate

Buying properties is one of the safest forms of investment. The prices of housing keep on increasing; though there has been a downturn in this market in the past. The chance of the price of property falling in future is very slim. So, you can invest in properties. You can buy a house or luxury property and rent it out. You can also invest in commercial properties and lease out the property or rent it out.

Mutual fund

By buying mutual funds, you can get very high returns. The asset management company invests your money in shares, debt securities, and other forms of securities. In return, you get high returns.

Invest in a business

You can think of an innovative idea and start your own business. You can start it while having a fulltime job. If you see that one of your friends is having a profitable business, you can invest in your friends’ business as well.

These are long-term investment opportunities and the risks involved are low if you invest carefully. You should study the financial market and always stay updated with the latest trends. When you have money, keeping it idle will be a foolish thing to do. You should invest your money in different ventures and try to get high returns.

3 Types of Financial Challenges France is facing today

France has the third largest economy in Europe. There has been a financial downturn around the world, but the other European countries like Germany and UK have recovered from the dreadful situation. France, on the other hand, has been slow at recovery. Here are the biggest financial challenges France is facing today.

Low GDP growth

The GDP growth of France is low compared to the other European countries. The GDP growth has been 1.2% in 2016 and 1.4% in 2017. But Germany and UK had a GDP growth of 1.8%. France is a dual labor market for which the growth of living standard has been low. The insiders are getting highly paid with benefits; whereas, the youngers are getting low paid short-term jobs. It is expensive to hire employees and to lay them off as well. The laying off procedures must be simplified. About 70% of the country’s economy is dependent on the service sector, like tourism and entertainment. But these sectors are not as productive as the manufacturing sectors. So, lack of innovation in the manufacturing sector contributes to the slow GDP growth of the country.

Unemployment rate


The unemployment rate is high in France. The rate is now 10% which is higher than the eurozone average. Almost double number of people are jobless in France compared to UK and Germany. The unemployment rate is high among the young people. 24% of people between the ages of 15 to 24 are jobless. The government debt is now 90% of GDP; whereas, it was only 58% ten years ago.

More social spending

France has a very generous welfare system. As a result, the social spending has increased. There are pensions and other benefits for the public and private sector employees. The healthcare system now needs more money. The public spending must be brought under control; otherwise, France won’t be able to get out of its debt problem. The government has to work under very strict budget and if the social spending is reduced, the situation can get better.

The labor market of France should be reformed and the public spending must be reduced in order to come out of these financial challenges that France is facing today. Other European countries like Germany and the UK are in a better financial position than France right now according to the GDP growth and unemployment rate. The deficit in the annual budget must be overcome and the French government must undergo some reforms in order to improve the country’s economic situation.

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