Archive for the ‘Cash Advance Loans’ Category

New Watchdog Agency Reviewing Payday Lending

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January 20th, 2012

Payday lending, an industry that brings in some $7 billion a year in fees nationwide

The Consumer Financial Protection Bureau said testimony from the session in Birmingham would help guide the development of future regulations. Recently appointed Director Richard Cordray said the bureau recognizes the need for short-term loans, but the lending needs to help consumers, not harm them. "Before this month, the federal government did not examine payday lenders," Cordray said. "Some state regulators have been examining payday lenders for compliance with their state laws. We hope to use our combined resources as effectively as possible."

Huge number of lenders

Officials said that about 19 million American households now have payday loans. With interest rates often in the teens and easy application procedures, lenders said they generate business through radio and television advertising, plus word-of-mouth and by locating offices in areas where other small-loan lenders are located. Many in the standing-room crowd of more than 400 were lending company customers or employees who wore "I Choose Payday Advance" stickers provided by the industry. Tanzy Bonner told a panel she got a payday loan to cover the cost of her 6-year-old’s birthday party; LaDonna Banks said she got one because she couldn’t work after donating a kidney to her brother.

The Consumer Financial Protection Bureau

The Bureau has been in the spotlight because of Republican opposition to its formation and President Barack Obama’s use of a recess appointment earlier this month to tap Cordray, a former Ohio attorney general, as its director. With GOP legislators blocking the nomination because they said the agency lacks sufficient congressional oversight, Obama installed Cordray.

Payday loans

Often criticized by advocates for the poor, payday loans are short-term, high-interest loans that work like cash advances. Storefront payday loan operations are prevalent in middle- to lower-income areas around Alabama, sometimes taking over closed convenience stores or fast-food restaurants. Loan amounts in Alabama are capped at $500 by state law, which limits the maximum interest rate to 17.5 percent. An industry website said the annualized interest rate for a 14-day loan of $100 tops 456 percent.

Typical loan

In a typical transaction, a borrower writes a check for $117.50 and gets $100 from the payday lender, who holds the check for a short period before depositing it. If the customer needs the check held another two weeks, he pays another $17.50 fee.

Officials said more than 20 percent of Alabama households have taken out loans from payday storefronts or similar businesses at more than 1,000 locations statewide. Opponents said the businesses prey on people who lack access to traditional loans when they get in a pinch for cash.

Gouging for loans

"People get churned through the system six, eight, 10 times a year," said Stephen Stetson, a policy analyst at Alabama Arise, a Montgomery-based anti-poverty organization. "If we have laws against gouging for gas and water, we ought to have laws against gouging for loans. Listening to what you heard here today, you’d think my thousands of employees go to work every day to hurt their neighbors," he said. Rather than enacting sweeping federal rules, he said, states should concentrate on getting rid of "bad actors" in the business.

Tags: Payday Loans, The Consumer Financial Protection Bureau, Watchdog agency
Posted in Advance Cash Loan, Business, Cash Advance Loans, Economy, Employment, Finance, Loans, Money, Payday Loans, Personal / Internet | No Comments »

Staying Within Budget Is Better Than Taking Loans

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November 14th, 2011

Here are some cost-cutting ideas

America and the rest of the world are having a rough time financially and it doesn’t seem as though things will improve any time soon. This economic crisis affects most of us every day as we tighten our belts and keep our wallets in check. But like a dieter craving sweets, temptation is always skulking around, begging us to spend. However, there are simple things you can do when the cravings start to bite.

Wait

The best thing you can do to stay on budget is tell yourself to wait. We see something on television, online or in a store and think we just have to have it. Tell yourself, “Wait.” How many times have we given in to that urge, only to see the item gather dust or wind up in the next garage sale? Chances are it is a whim brought on by budget fatigue, and the burning desire will go away. If the feeling persists, then maybe it is something worth saving for.

Thinking ahead

Realistic frugality begins with a realistic plan. If a budget is too restrictive, it adds stress to your life. That type of gnawing pressure may lead to abandoning the budget altogether. Make your plan realistic, but not a last resort starvation diet. Thinking long term can help. Instead of seeing savings and frugality as a chore, think big picture. You and your family will be happier if you don’t have to strain to pay off last month’s splurge.

Don’t forego fun

While a budget must begin with month-to-month obligations and essentials such as mortgage, groceries, car insurance and utilities, it should also include an item for “fun”. If you enjoy sports, make sure to include some greens fees or club dues. If concerts or theater are your thing, figure in a ticket every couple of months. Another way to achieve this is to keep a “fun fund,” which is reserved only for a specific goal. Instead of giving in to every impulse, focus on the really satisfying ones and put a little away toward it out of every paycheck. Maybe there is a trip you want to take, or one luxury item that you truly want. With a little patience and persistence, it can be yours.

Cutting corners

For the day-to-day items, there are many things you can do to cut corners. Here are just a few suggestions to get the ball rolling.

Most beauty schools and community colleges offer cut-rate haircuts and beauty services, as students need opportunities to practice their craft. While that may sound risky, rest assured most places only let advanced students touch the paying customers.
Second-hand and thrift stores are a wonderful resource for items we use every day.
Flea markets, garage sales and Craigslist are good, too. Somebody once said one man’s trash is another man’s treasure. Go explore. You never know what you might find for a song.
Fuel expenses are one of the worst drains on our resources these days. Try public transportation, carpooling and consolidating trips. Remember, the less time you are behind the wheel, the less you are spending.

Tags: Household budget, Personal budget, saving money
Posted in Business, Cash Advance, Cash Advance Loans, Economy, Employment, Finance, Money, Payday Loans, Personal / Internet | No Comments »

Here’s My Loan Application for the Merry Month of May

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May 1st, 2011

I will never stop taking loans for reasons like this
It’s May, my busy month at AdvanceLoans.net. Today I am repaying the loan I took in January to pay for all the end of the year expenses, presents, parties, etc. and today I am putting in my application for a loan to secure my place in the October painting group in Tuscany, Italy. All deposits have to be in by the end of this week. And I want to be sure…

Painting
I paint, mainly acrylics but occasionally watercolors. A few years ago I was surfing on the internet, idly wasting time, when I saw a note advertising a watercolor painting holiday in Italy. I lost all control and did what I advise readers never to do, send off money using your credit card number. The whole idea sounded so adventurous and romantic that I couldn’t wait to check it out or even discuss it with my wife. Off went the money, followed by common sense and sheer dread at what I had done.

3 Days later
The answer arrived 3 days later. A brochure with pictures of the organizers arrived by email and as far as I could see everything was honest and risk-free. I was greatly relieved. Came October and off we went to Venice, a first ever visit for us. We had a great time. The hotel was wonderful, the other participants were great and the daily painting sessions along the canals were outstanding. I was sold. This was my kind of holiday.

Tuscany
The following year we joined the same group and off we went, this time to stay in a working winery in Tuscany. It was a larger group and there were other groups – photography and cooking. My wife went off to learn all about Italian cooking each morning and I joined my group and painted among the vineyards. We drank bottles of Chianti at each meal and put on weight with all the great food. It was another best-ever holiday.

Expensive
These are expensive holidays and last year when the recession was roaring along we stayed quietly at home. But now that things are looking, my mind is plotting and working furiously on various schemes to get us there again in October. As I sent off the last installment to replay the Cash Advance Loan I took in December when my 3 kids all started clamoring for new bikes, it suddenly struck me that I can now apply for another loan which means I can send off the $1200 deposit for the Italian trip. It then leaves me 5 months to find the balance of the money.

Impatience
In the meantime we have to make it through the summer heat. I think back fondly to the Italian breakfasts every morning, the laughter and enjoyment of the crowd of people, the lectures and videos on Italian opera, the walks among the vines and the olive trees. It’s going to be a long wait. Now, let me get into the AdvanceLoans.net website and fill in the application form for the Cash Advance Loan.

Tags: AdvanceLoans.net, cash advance loan, Italian cooking, Italy, Painting
Posted in Advance Cash Loan, Cash Advance, Cash Advance Loans, Finance, Loans, Money, Payday Advance, Payday Loans, Personal / Internet | No Comments »

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