Apple tunes out trade war as new AirPods, services lift holiday outlook

Apple Inc on Wednesday forecast sales for the crucial holiday shopping quarter ahead of Wall Street expectations, with Chief Executive Tim Cook seeing strong sales of the wearables such as the noise-cancelling AirPods Pro and hoping for a US-China trade deal by year-end.

Cook wants to wean Apple off stagnating iPhone sales that make up over half its revenue and switch to generating income from services and wearables. Cook is implementing the strategy while also shepherding Apple through a trade dispute between two of its most important markets, the United States and China.

Apple said it expects $85.5 billion to $89.5 billion in sales for its fiscal first quarter that ends in December, with a midpoint of $87.5 billion that is above analyst expectations of $86.9 billion, according to IBES data from Refinitiv.

Apple shares rose about 2 percent to $247.50 in after-hours trading on the news.

In an interview with Reuters, Cook said he anticipated strong sales of services and wearables, as well “a very, very good start” for sales of the iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max released last month. Cook said the forecast also reflected the company's belief that the United States and China will resolve their trade dispute.

"I don't know every chapter of the book, but I think that will eventually happen," Cook told Reuters. "I certainly hope it happens during the quarter, but we'll see about that."

The forecast comes as the Cupertino, California-based company said it generated $33.36 billion in iPhone sales for its fiscal fourth quarter ended in September, which compares with analyst expectations of $32.42 billion, according to Refinitiv data.

The results mark the fourth straight quarter of year-over-year declining iPhone sales. At the same time, hardware is getting less profitable on a gross margin basis, with Apple's net product sales falling while the cost of sales rose slightly.

But Hal Eddins, chief economist for Apple shareholder Capital Investment Counsel, said part of Apple's rising stock price came from interest rate cuts by US officials and other indicators of slowing economic growth. "Investors feel emboldened to pay up for what they feel is 'guaranteed growth' with big tech," Eddins said.

In September, Apple unveiled a lineup that included the new iPhone 11 priced at $699, $50 lower than the debut price of its predecessor, the iPhone XR.

"The starting price of $699 is a factor in bringing more people into the market and giving people just another reason to upgrade," Cook told Reuters. "In China specifically ... we picked locally relevant price points that were more similar to the price points that had great success with earlier."

Apple's revenue is increasingly coming from accessories such as the Apple Watch and AirPods as well as new services such as its Apple Card credit card and a streaming television service set to begin on Friday. Customers will be able to buy iPhones using the Apple Card with no interest for 24 months, Cook said on the conference call.

Apple said its services and accessories segments generated $12.51 billion and $6.52 billion in fourth-quarter revenue, respectively, topping analyst estimates of $12.15 billion and $6 billion, according to Refinitiv data.

Apple now has 450 million subscribers to its own or third-party services on its devices, and sales of wearables were up 54 percent versus the previous year.

"It was an incredible quarter for wearables," Cook said. "It was a very broad range of services that set new all-time records, from our payment services to the search ad business to Apple Music, Apple Care, the App Store and cloud services - almost every kind of service we're in."

Apple sales for its Greater China region dropped a relatively modest 2.4 percent to $11.13 billion in Apple's fiscal fourth quarter ended in September.

"The China growth being down only 2% in this environment is a win," said John Ham of Apple investor New England Investment and Retirement Group. "The Chinese consumer isn’t punishing Apple as the American face of the trade war."

Apple's Cook said that iPhone sales in China ticked up toward the end of the quarter, which includes several days of sales of the new iPhone 11 models. Cook also said the company saw double-digit services revenue growth in China and wearables revenue in China grew at a higher rate than the companywide figure.

"iPhone had a remarkable comeback from the way we performed earlier in the year," Cook said.

Apple's holiday-quarter forecast comes amid a trade conflict between the United States and China, where Apple assembles most of its products and where many of its suppliers are located. Tariffs on imports that would include Apple accessories took effect in September.

Tariffs might hit more categories of goods including Apple's iPhone on Dec. 15, though US and Chinese negotiators were working on a deal.

Apple said its revenue for the fiscal fourth quarter was $64.04 billion, compared with analyst expectations of $62.99 billion, according to Refinitiv data. Earnings per share were $3.03 versus expectations of $2.84. On an absolute basis, earnings dropped from $14.13 billion to $13.69 billion, with the per-share results driven by a smaller base of outstanding shares due to repurchases.

source: news.abs-cbn.com

Wall Street investors caught in crossfire of fight for holiday shoppers

NEW YORK -- Investors would normally be thankful for a strong US economy, yet this holiday season they worry retailers may have to spend heavily to win, leaving shareholders with a lump of coal.

Steep discounts are as familiar a sight during the holidays as rich desserts, but this year so is a fierce grab for a slice of the e-commerce market as Amazon.com Inc and Target Corp offer free shipping for small purchases.

US shoppers formed long lines at checkout counters on "Black Friday" to take advantage of discounts on clothing and electronics, offering evidence that a healthy economy and rising wages are translating into stronger consumer spending at the start of retailers' make-or-break holiday season.

Yet underwhelming earnings reports earlier this week from Target to department store Kohl's Corp and home-improvement specialist Lowe's Cos Inc reminded investors that US tariffs on imported goods, fickle consumer tastes and competition could eat away at profits this year.

Target shares fell 10 percent on Tuesday as the company said profit margins declined due to growing investments in boosting its online business, wage increases, price cuts and the higher cost of preparing and shipping orders. Target shares fell 2.7 percent on Friday.

"The retailers and e-commerce players are duking it out," Shawn Kravetz, Esplanade Capital LLC's chief investment officer, said at the Reuters Global Investment 2019 Outlook Summit in New York last week.

"Amazon is buying that (consumer retail) business. Other players are buying that business. So it's a war."

Kravetz, whose first job after earning an MBA in 1995 was at CML Group Inc, a company that sold NordicTrack exercise machines through catalogs and television advertisements, said "the old joke was that we gave away stuff for free to sell people shipping."

The game has changed for retail players now, he said.

"They have almost no gross margin and they're giving away shipping. It's a tough gig. But if you're Amazon - and you're playing the long game - if you can only get another trillion dollars' worth of revenue and then raise prices one percent the numbers can work."

More retailers face pressure to cut into their margins or sacrifice growth, creating a catch-22 for investors even as consumers spent strongly during the sales following Thursday's US Thanksgiving Day holiday. GlobalData Retail said that the average person shopping early on Black Friday spent $407.20, up 2.1 percent over last year.

Even so, money managers have been getting more selective.

Eaton Vance Corp portfolio manager Kathleen Gaffney, whose Multisector Income Fund holds bonds issued by JC Penney Co Inc and Nordstrom Inc, said she has scaled back the JC Penney holding.

"They've pretty much secured every asset that they have so it is going to be challenging. Nordstrom, on the other hand, is well suited for the current market," Gaffney said at the Reuters summit, adding that the company's managers have been effective and target a solid, upscale niche.

Nordstrom shares have added nearly 12 percent this year, including dividends, sharply paring gains closer to 50 percent earlier this year after reporting disappointing third-quarter same-store sales. JC Penney shares crashed nearly 60 percent over the same period as the company continued to struggle to appeal to changing tastes of younger shoppers less likely to frequent traditional department stores.

Katie Shaw, sector leader for the global consumer team at Fidelity Investments, said she is positive about retail stocks because US consumers are getting a raise, seeing inflation-adjusted wages gain at all income levels for the first time since the 2007-2009 global financial crisis. But Shaw has a lower holding in mall-based department stores and big-box retailers than the benchmark against which she is measured.

"The role of retail to a customer's life has changed," she said. "There are a number of companies who have yet to invest in driving emotional connection with consumers."

source: news.abs-cbn.com

Shop early, shop often to avoid Christmas impulse buying - study

AUSTIN, TEXAS - Parceling out holiday shopping in small amounts and completing it in a realistic schedule helps people maintain the self-control needed to avoid being swept away in impulse purchases that can wreck budgets, a study to be published in January said.

The study from Texas A&M University researchers looked at how well people complied with maintaining self-control for tasks such as making purchases and found that people should pace themselves if they want to accomplish larger goals.

"Try to conserve your energy. Don't try to make it too hard on yourself because it is going to backfire," said Marco Palma, director of the Human Behavior Laboratory at Texas A&M and co-author of the study called "Self-control: Knowledge or perishable resource?" It will be published in the Journal of Economic Behavior & Organization.

Palma recommended making a list and dividing it into sub-goals of small purchases. Shopping online and shopping early in the day can help conserve energy, which can also help people exercise self-control.

"Committing to a shopping list will help you stay on budget," he said in an interview this week.

The worst shopping scenario in terms of self-control is waiting until the last minute to make the bulk of holiday purchases, he said.

The study used biometric data including eye tracking and brain scanning to measure how well people complied with easy and difficult tasks that required self-control.

It found that an initial moderate self-control act enhances subsequent self-control ability by increasing confidence and motivation, but exerting too much self-control drains subsequent self-control ability.

But humans are humans and even when they are nice, they can be a little bit naughty. A person who completes a holiday shopping list as planned may splurge with a little reward for themselves, Palma said.

source: news.abs-cbn.com

Bezos a $100 billion man as Amazon rises on cyber shopping

SAN FRANCISCO - Amazon founder Jeff Bezos was a $100-billion man on Monday as the online retail colossus raked in cash from the holiday weekend's cyber shopping spree.

Forbes magazine's real-time ranking of the richest people had Bezos on top, with a personal net worth of $100.3 billion.

Microsoft co-founder Bill Gates saw his net worth climb to a dizzying $89.4 billion but was relegated to being the second most affluent person on the planet.

Bezos owns almost 17 percent of Amazon, which he founded in a Seattle garage in 1994 after quitting a hedge fund job to sell books online.

Amazon shares finished the official trading day up just shy of a percent, and inched up a bit more in after-market trades to top $1,200.

Based on the share price, Seattle-based Amazon had a market value of some $576.3 billion.

Market tracker Adobe Digital Insights data showed that online shopping was at a record-setting pace from Black Friday into Cyber Monday.

source: news.abs-cbn.com

Toys 'R' Us files for bankruptcy ahead of holiday season

Toys 'R' Us Inc, the largest U.S. toy store chain, filed for bankruptcy protection on Monday, the latest sign of turmoil in the retail industry caught in a viselike grip of online shopping and discount chains.

Toys 'R' Us said it received a commitment for over $3 billion in debtor-in-possession financing from lenders including a JPMorgan-led bank syndicate and certain of the company's existing lenders.


The new financing, subject to court approval, is expected to immediately improve the company's financial health and support its ongoing operations during the court-supervised process, Toys 'R' Us said.

The company's Canadian unit intends to seek protection in parallel proceedings under the Companies' Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice, Toys 'R' Us said in a statement.

The filing is among the largest ever by a specialty retailer and casts doubt over the future of the company's nearly 1,600 stores and 64,000 employees.

It comes just as Toys 'R' Us is gearing up for the holiday shopping season, which accounts for the bulk of its sales.

source: news.abs-cbn.com
 

Retailers give shoppers new reasons to use mobile phones in stores

NEW YORK - At some Macy's outlets this holiday season, shoppers who download the retailer’s app will be able to use their smart phones to guide them through the store to products they’re seeking.

At JCPenney, customers will be able to take a snapshot of, for example, boots worn by a person passing by and quickly find out if the store has similar ones in stock. And Staples is testing an app that will allow sales clerks to let customers know how the store’s prices match up against Amazon and other rivals.

Hoping to claw back market share from online rivals - and tired of watching customers use their phones to find better deals than those offered in stores - brick and mortar retailers are trying to give shoppers different reasons to use their phones while doing holiday shopping.

The new apps will allow customers to easily order out-of-stock items for home delivery, to check store prices and even to summon a clerk.

But the retailers’ efforts will face two significant challenges in the looming holiday season: getting customers to embrace the new technology, which is still sometimes glitchy and dependent on in-store systems, and getting them to trust that stores can match the Web’s prices and convenience.

Retail purchases by mobile phone have increased by 34 percent in the last year, according to IBM, which estimates that more than 40 percent of the online traffic and about 20 percent of sales this Thanksgiving weekend will come from smart phones.

A Reuters/Ipsos poll of more than 3,000 respondents this month found that about half of those surveyed said they would use their mobile phones while shopping in stores this holiday season, for such things as making price comparisons, taking photos or researching products. Last year, only about 42% of respondents said they would use their phones while shopping.

Companies that don’t make mobile work are playing a "very dangerous" game, said Jay Henderson, head of IBM’s cloud-based marketing platform. "Retailers that can’t deliver a more personalized experience on mobile devices will start losing customers to businesses that can," he said.

In addition to its pilot program guiding customers to products within stores, and a photo program similar to JCPenney's, Macy's has taken inspiration from dating app Tinder, recommending products to customers online who swipe one way to like an item and the other to reject it.

JCPenney's app can be used to scan barcodes to pull up product information or order out of stock items, and it saves digital coupons - two increasingly common offerings in retailer apps.

“We look at using phones in stores as an enhancement to shopping,” said Kate Coultas, a representative with JCPenney which is heavily focused on mobile this year.

SERVICE WITH A TAP

Stores are trying to make customer service easier, too.

Best Buy's app now lets shoppers call, text or email a representative while in stores.

Target Corp is testing an in-store "digital service ambassador" in 25 Los Angeles stores to help customers use Target apps.

Ulta Beauty is testing an app that will allow clerks to access customer information and point them to products they might like.

Faisal Masud, executive vice president of global e-commerce at Staples, said his company knows that it must satisfy the desires of its customers to find low prices. The company, like many others, will match online and in-store prices of competitors, including Amazon, Best Buy and Office Depot.

Customers “have a phone that is basically a super computer, and they will find it somewhere else” for less if they can, he said.

Companies offering web apps and in-store technologies will also have to grapple with keeping the new apps and systems working and up to date. That means ensuring that WiFi in stores works, and that terminals function.

Recent visits to a Staples store in New York City found that a kiosk set up to allow people to order online wasn’t functioning, and at a JCPenney store in the city, the Wifi didn’t work. Both companies said the problems encountered were unusual and that they have backup systems in place.

"Poorly executed plans can be worse than no mobile strategy at all," said Perry Kramer, vice president at Boston Retail Partners. "The dangers are losing those customers for the rest of the year or for a long time."

Read more at Reuters.

source: www.abs-cbnnews.com

'Black Friday' frenzy begins in US

LESSBURG - The traditionalists don't like it, but the "Black Friday" shopping frenzy is as much a part of the Thanksgiving holiday in the United States as turkey and pumpkin pie.

And it's only Thursday.

Americans will spend tens of billions of dollars over the four-day holiday and there was certainly no messing about at Leesburg Corner, a Virginia outlet center only a short drive from the US capital Washington.

There was hardly time for the roast turkey and stuffing to settle when most shops opened there on Thursday, Thanksgiving Day, for a 28-hour bonanza of breathless consumerism that was to stretch overnight and drag on nonstop until 10:00 pm Friday.

Henri Brown, 17, and brother Will, 15, were among the first through the doors on a chilly winter's evening.

Henri forked over $130 in the first hour and proclaimed himself happy with his early purchases: two jackets -- a dark blue one he was already wearing -- sunglasses and trousers.

"Most places have 50 percent or more off, it's pretty good. I come here most years to get clothes for the winter, but it's not as crazy busy as previous years," he said.

'Maybe all night'

The four-day Thanksgiving weekend is the kickoff to the US holiday shopping season, and Black Friday has long been considered the critical day that turns retailers' books from red to black.

But there has been criticism of those retailers that throw their doors open on Thanksgiving instead of actually waiting for Black Friday.

Don't the store workers deserve a day off to spend with their families too?

"They don't have to work. I guess they do it for the money. They are not being forced here," said Henri. "And they might enjoy the rush of people."

Vera Luo, a 19-year-old from China studying in Washington, came armed with a suitcase she was ready to fill to bursting with new acquisitions that she said would be more expensive in China.

She and two friends paid $60 for a taxi from the US capital and they were in it for the long haul.

"I have no idea where my friends are or when I will find them," said the economics student, clasping a directory of the more than 100 stores in the complex.

"So far I have only bought lens solution, but I have a budget of $500 and I want to buy a bag from Coach.

"I don't know how long we will be here. Maybe all night."

Tactical approach

Mamadous Niass, 48, a cyber-security engineer originally from Senegal, declared himself something of an old hand in the art of the post-Thanksgiving splurge.

"It's not the cheapest time in the year. After Christmas is cheaper, but I came today because there are more options -- nothing is left after Christmas," he said sagely.

He too was through the doors early but was taking a more tactical approach, refusing to jump right into the spending bonanza.

"I am well-prepared and have a list of four brands I want -- Columbia, Tommy Hilfiger, Calvin Klein and Ralph Lauren -- and I will get," he said firmly.

Jeanette, a local who gave her age as "104," was another refusing to get carried away by the discounts of more than 50 percent.

She had scouted a Michael Kors purse online before moving in for the kill for just over $100.

"I did not want to pay the high price before but it was on a pretty big discount," she said, rubbing her cheeks to stave off the cold.

Taking a breather on a bench while her daughter and granddaughter did the running about, Jeanette too said it had been noticeably busier in previous years.

"A few years ago it was not like this, but prices have gone up in the last few years," she said, adding with a grin: "But I am not done quite yet."

source: www.abs-cbnnews.com

How to find good bargains in bazaars

MANILA, Philippines - Whenever we want to shop for bargains, bazaars – better known as tiangges -- always come to mind.

Ubiquitous during the holiday season, bazaars are popular for offering a wide array of products, many of which are usually hard to find in malls and stores. Homemade goods, handicrafts, artisanal delights, farm goods and delicacies from distant provinces, as well as export overruns and cheap knock-offs are usually sold here.

Although there are tiangges in operation throughout the year, there are also a small number that sprout only during the holiday season to take advantage of the shopping rush. Usually, these are found in residential subdivisions.

More than the goods, what makes bazaars so attractive to many shoppers is that haggling can be done freely with the tiangge owners. That means you can get away with good deals — even as low as 50 percent off — if you know how to negotiate well.

Although bazaars are known to be a bargain hunter’s paradise, you can still blow your budget if you aren’t careful. Here are some tips to help you make the most of your bazaar shopping expedition:

Have a shopping list.

The easiest way to overspend is to shop without a plan. If you are buying gifts, make sure you have a ready list of recipients indicating a budget for each. This way, you can stay within your spending limit.

Check out mall and online prices beforehand.

Sometimes, what looks like a good bargain might turn out not to be so. This is why it’s good to have an idea of how much items sell in brick-and-mortar and online stores before you hit the bazaars. You’ll be surprised – some items being sold in bazaars may be on sale in regular stores, and at lower prices.

Compare prices from stall to stall.

Resist the urge to buy from the first stall you visit. Do a quick reconnaissance to find out the prices of similar items in different stalls. Prices can greatly vary among them so checking out the lay of the “shopping land” really helps you find best bargains.

Haggle, haggle, haggle.

Bazaars are a haggler’s haven. Do not hesitate to ask the seller for a discount, especially if you are buying items in bulk. Sellers are also happy to extend discounts to repeat customers. Don’t hesitate to ask for more--the merchant may just be too happy to oblige.

Examine items closely.

Unlike regular stores which have customer service departments, bazaars are temporary stores that you may not be able to locate after a certain period. This is why you should check the items thoroughly for any possible damages before making a purchase . Ask about their return policy, and ask for a receipt or a proof of purchase to facilitate a possible exchange.

Stick to small, inexpensive items.
Because they are not regulated, bazaars may not be the ideal place to purchase large-ticket items, especially those that offer a warranty. If you’re looking for gadgets or goods that require after-sales service, get these from the authorized dealers that can offer and honor the warranty and provide follow-through services.

Buyer beware.
Due to their unregulated nature, there is no guarantee that the merchandise in bazaars have gone through and passed requirements such as quality control. For example, Christmas lights and electrical items may not have gone through safety checks. Similarly, if you are looking for designer items, you may be better off going to department stores where the authorized dealers are located.

Check your money.

Since most bazaars do not use cash registers, you are often left at the mercy of vendors who may make mistakes in computing your bill. Do a parallel computation and check your items before leaving to ensure that no mistakes are made. A wise alternative is to use your credit card where plastic is accepted to lessen the use of cash.

Timing counts.

The time of purchase often determines the size of the discount. If you’re buying gift items in the run-up to Christmas, expect prices to be high. If you shop on the last day or last few hours of a bazaar, though, many merchants may be happy to hold a clearance sale. Similarly, you can probably get big discounts if you do your shopping after the holiday season.

Happy bargain hunting!

source: www.abs-cbnnews.com

A gift for the wise

Get the most value for your money with BDO Online Installment and Online Delights



Staying within your shopping budget is one problem many people encounter during the holiday rush. There are so many people on your list, and, of course, you want to give each one the best possible present ever, while still having money left for other holiday festivities.

Save yourself from stress by going the online shopping route: no need to spend on gas, parking, and food when you get tired from going around the crowded malls and bazaars.

Plus, with the online promos of BDO Credit Cards - Online Installment and Online Delights - you’re guaranteed to get the most value for your money and make your holiday purchases more convenient and easier on the pocket!

With the Automated Online Installment offer, you can pay for your purchases from participating websites and portals at Absolutely 0% Interest. As one of the preferred credit cards for online shopping, BDO is the first and only credit card facility that allows automated (no need to call to activate the service!) online installment purchases. From chic items at ava.ph and karatworld.net, to exciting travel adventure packages at 2go.com.ph and bookbelowzero.com, you’ll surely find the perfect gift for everyone on your list—all sans the hassle (with the freedom to pay in installment) and even coupled with great deals.

On top of that exciting feature, another thing you’ll surely love is BDO Credit Card’s Online Delights: Purchase the perfect gifts for your loved ones (and a chica outfit for yourself) at discounted rates, and even get discounts and freebies when you use your BDO Credit Card to shop at BDO online partner merchants. Shopping online with a BDO Credit Card is safe and secure, so you can have a truly merry and stress-free shopping time.

With a BDO Credit Card, online shopping is indeed more delightful!

Get a complete list of BDO promos by downloading the BDO Deal Finder App for FREE at iTunes App Store and Google Play Store. For complete BDO Online Installment mechanics, visit www.bdo.com.ph/promos/shop-online-absolutely-0. For complete BDO Online Deals mechanics, visit www.bdo.com.ph/promos/online-delights.

source: www.abs-cbnnews.com

Credit card users told: Shop wisely this holiday season

MANILA, Philippines – The Credit Card Association of the Philippines (CCAP) has urged shoppers to use their credit cards with caution this holiday season.

“Using a credit card for holiday shopping is truly a practical and convenient choice, but cardholders need to be smart and safe,” CCAP spokesperson and executive director Alex Ilagan said.

Ilagan said to prevent overspending using a credit card, shoppers should make a list in advance, set a budget, and only charge within your means.

“Credit cards are an ‘avail now and pay later’ facility…they should not be treated like ‘free money’,” Ilagan said.
“As such, the same budgeting rules apply: compute how much you can realistically afford, and use that number as your guide.”

CCAP said December is the strongest month in consumer spending using credit cards issued by CCAP member banks.

Data also showed that consumer spending using credit jumped 6 percent from P445.12 million in 2012 to P471.76 million this year.

“The great thing about credit card shopping is that many banks provide zero percent installment promos on purchases that would otherwise leave a dent in your wallet…The ability to spread out expenses over a period of time has proven to be very useful for countless consumers,” Ilagan said.

As the incidence of credit card theft during the holidays is higher, Ilagan offered these safety tips:

For those with multiple credit cards, bring only one or two
Avoid lending out credit cards, especially to children or friends
Put your card away after each use
Avoid putting it in your pocket
Don’t linger at the cashier with your credit card exposed
“We’ve had reports of people standing in line at checkouts for the sole purpose of memorizing credit card numbers,” he warned.

Ilagan also urged consumers to pay their balances in full come January to avoid incurring interest charges.

“That's the great part about setting a budget and charging only what you can afford, you’ve managed your Christmas expenses, and start the year debt-free,” he said.

source: www.abs-cbnnews.com

8 Things Not to Keep in Your Wallet This Holiday Season

You're doing your holiday shopping in the midst of those distracting sales and crowds. You’re checking your gift lists (twice!) and your budget. You’re juggling bags and boxes. And you're paying little attention to your purse or wallet. These are the moments when identity thieves will strike.

“Pickpocketing can happen virtually anywhere, and people should be on their guard, especially while shopping this holiday season,” says Ken Chaplin, senior vice president of Experian’s ProtectMyID. “Thieves take advantage of the shopping rush and its inherent distractions to steal wallets and, potentially, identities.”

With just your name and Social Security number, identity thieves can open new credit accounts and make costly purchases in your name. If they can get their hands on (and doctor) a government-issued photo ID, they can do even more damage, such as opening new bank accounts.

We talked with consumer-protection advocates to identify the eight things you should purge from your wallet immediately to limit your risk in case your wallet is lost or stolen.

And when you’re finished removing your wallet’s biggest information leaks, take a moment to photocopy everything you’ve left inside, front and back. The last thing you want to be wondering as you're reporting a stolen wallet is, “What exactly did I have in there?”

source: kiplinger.com

Debt and the Holidays

A lot of people make use of their credit cards when shopping for the holiday season on the premise that they are going to pay all of the newly formed debt off within only two or three months time. Unfortunately, most people are still trying to tackle these credit card debts six to eight months later, and by then they are paying as much as 10 percent to 20 percent more because of credit card interest, making the holiday bargains much more costly in the end. This debt pattern is repeated every year for many Americans. Debt and the holidays tend to go hand in hand in this day and age, because incurring debt during the holidays is something that seems to make sense to some people, even though incurring debt for gift buying purposes is one of the worst possible things that you can do. Using credit cards for gift giving is an act that simply leads to impulse buying and overspending, along with resulting in a steep increase in debt.

A better approach to avoiding debt and the holidays is simply to save small amounts of money all throughout the year, putting together a fund specifically designed for holiday gift giving. Put together a list of people that you would like to give gifts too and how much money you can afford to spend on each one of them. This way you can plan ahead and pay cash for each purchase. As soon as the cash is done, you are done shopping.

If you find it to be difficult for you to save money all throughout the year, then consider joining a Christmas Club, which is something that many credit unions and banks still offer. You put so much money into the account a week into the account at your bank. Sometimes this money can be automatically deducted from your paycheck or regular bank account to save you the effort of doing it yourself. The account will most commonly accrue interest at the same rate as traditional savings accounts. In October, November or December the money will be transferred into your regular checking account, allowing you the necessary means to get your holiday shopping done, debt free!

Four other things that you can do to stay out of debt during the holiday season include:

- Setting spending limits. How much can you set aside reasonably every month based on your budget? Plan ahead and only put away the amount that you can actually afford.

- Putting together a list. Follow Santa's example and put together a list of people deserving of gifts including smaller gifts for teachers, babysitters, delivery people, etc. Budget ahead of time through planning and you will not end up with any unnecessary expenditures.

- Setting a limit. Decide how much to spend on each person on your list and make sure to add everything up so it doesn't exceed the spending limit that you set for yourself.

- Deciding where to shop. Comparison shop by shopping early and you can save a lot of money. If you wait until the last minute, you won't have time to shop around and may end up paying more for something that could have been purchased for much cheaper a week or two earlier.

source: richcreditdebtloan.com

Consumers say 'Show me the bargains'

U.S. consumers say the deals had better be good if retailers want them to spend their money this weekend.

This is the earliest Thanksgiving since 2007, giving consumers plenty of time to get their shopping done before Christmas and Black Friday deals are designed to get consumers in the spending mood.

A Black Friday shopping survey by the National Retail Federation says as many as 147 million people plan to shop this weekend, down from the 152 million who planned to do so last year. While 71 million said they definitely planned to shop, 76 million others said they would wait and see what retailers had in-store.

"Though the Black Friday tradition is here to stay, there's no question that it has changed in recent years," NRF President and Chief Executive Officer Matthew Shay said in a statement. "It's critical for retail companies to constantly evolve as consumers do, and right now shoppers want great deals, good value, and convenience -- exactly what we're seeing with this season's late and early openings, price-matching, layaway and mobile offerings."

Nearly half of shoppers say they keep up with advertising circulars throughout the holiday and more than 30 percent say they watch for television ads. A growing number of U.S. shoppers are keeping track online. The NRF said nearly 27 percent will follow retailers' websites and 31 percent will track emails from retailers to get the latest holiday announcements.

"The days of waking up Thanksgiving morning to find out what retailers' Black Friday promotions will be has transitioned into an ongoing dialogue between companies and their customers starting days in advance," BIGinsight Consumer Insights Director Pam Goodfellow said. "Through sites like Twitter, Facebook and Pinterest, company blogs, emails and mobile apps, consumers can connect with their favorite retailers like never before."

Discover says consumers plan to spend more this holiday season than last year, as long as retailers are offering good deals. The 2012 Discover Annual Holiday Shopping Survey suggests spending will jump to an average of $838 this year, up from $748 in 2011.

Half of consumers say they plan to spend about the same as they did in 2011, and 23 percent plan to spend more this year. Forty-two percent say retailers' sales and promotions will most influence their holiday spending.

The Discover survey suggests 46 percent of shoppers plan to spend $100 to $500, 26 percent, say they plan to spend $500 to $1,000 and 14 percent say they plan to spend $1,000 to $5,000.

Consumers are looking for good deals online, as well as incentives such as free shipping. Discover said 75 percent of consumers plan to shop around online for better prices.

"When asked to choose from the following five online deals they are looking for, shoppers ranked free shipping first with 79 percent, followed by exclusive sales and offers, coupon codes, early access to sales and Facebook-exclusive promotions," Discover said.

Retailers are expecting to see a boost in mobile shopping this year. The NRF said nearly 53 percent of those who own smartphones and nearly two-thirds of those who own tablets plan to use their devices to research and purchase holiday gifts, food and decor.

Walmart is providing special perks to customers who "like" their Facebook page or download Walmart's mobile app, offering early access to specials and information, the company said.

The Walmart app allows customers to use the "in-store mode" on their smart phones to view local ads, access local store pricing and see the aisle location of products carried in that specific store.

Cyber Monday is a growing trend among shoppers looking to take advantage of special online deals that can save them the hassle of heading out to the shopping mall.

Forty-one percent of respondents to the PriceGrabber.com's third winter holiday shopping survey said they planned to shop on Cyber Monday, up from 37 percent last year and 33 percent in 2010. The online shoppers said they wanted to take advantage of one-day deals, discounts and free-shipping offers.

While Cyber Monday is often associated with employees returning to the office after the Thanksgiving weekend only to spend most of their time browsing for holiday deals online, PriceGrabber's survey suggests 83 percent of people planned to do their Cyber Monday shopping from home.

Rojeh Avanesian, vice president of marketing and analytics for PriceGrabber.com, said clothing and consumer electronics are expected to be the top gift purchases on Cyber Monday.

Plans by Target, Sears and Walmart to get a jump on Black Friday by opening stores Thursday night have sparked fears of employee and consumer backlash.

"Retailers are under immense pressure to get the holiday shopping season off to a strong start," John A. Challenger, chief executive officer of global outplacement firm Challenger, Gray & Christmas said in the firm's holiday shopping outlook. "As big box chains face growing competition from discounters like Target and Walmart, not to mention the fierce competition from online retailers like Amazon.com, they are all compelled to find whatever edge they can to get shoppers into their stores,"

Challenger warned, however, retailers are taking a risk by being open on a day set aside for giving thanks.

"Not only is there the risk of creating disgruntled workers, who feel they have no choice but to accept the holiday hours in this economy, but in the wake of the worst recession since the Great Depression, some Americans have soured on the corporate excess and the profits-at-any-cost mentality that some say helped hasten the economic meltdown," Challenger said.

However, he said, it is not as if no one works on Thanksgiving.

"You can't close hospitals or fire departments," he said. "Grocery stores provide essential last-minute Thanksgiving meal items, but also baby formula, medicine and other products that should be obtainable every day of the year. Some would even argue that the NFL provides a necessary service in the form of family entertainment and bonding. However, it would be difficult to argue that the need to buy a deeply discounted DVD player or LCD television cannot wait another eight to 10 hours."

The NRF 2012 holiday spending survey of 9,383 consumers was conducted by BIGinsight Nov. 1-6. The margin of error is 1 percentage point. The Discover survey of 506 male and 497 female adults was conducted by Penn Schoen Berland Oct. 26-30.

source: upi.com