Teach him to save, and he'll be on his way to being a smart consumer. (Photo Credit: CC BY-ND/Consider the Ant)

Many parents have wrestled with whether they should pay their kids for good grades. Some look at a little cash as an extra incentive to excel, while others believe that it sends the wrong message to children about the value of both money and education. However, studies suggest that there is a golden middle path that is motivating and teaches children lifelong financial lessons.

‘School is your job’

Many parents who support the idea that paying for grades is productive argue that school is a child’s vo0cation. It’s a kid’s job to learn as much as possible to prepare for the endless education that is life. As such, paying for performance is like an employer compensating an employee.

The opposing side to this argument, however, is that not all jobs in life net monetary rewards and that children should strive for good grades simply for personal growth. Does withholding cash for grades prepare children for the joy of unpaid internships, where experience is its own reward? Or are such jobs nothing more than volunteered slavery to a corporation, where the game of “paying your dues” obscures the truth that labor is being exploited?

Pay for good grades programs have been instituted in a number of public school systems to good effect, reports the New York Times. Yet controversy has remained. While Urban League President Darwin Davis praised such efforts for mirroring the reward systems of U.S. capitalist society, Manhattan Institute fellow Sol Stern called it “an insult to every hard-working parent.”

Never work for free

Teaching children they should be properly compensated for hard work and achievement is one of the ways parents can help instill an entrepreneurial spirit. In short, the lesson is that if you’re good at something, never do it for free. Yet for such a principle to sink into a child’s mind, it must be accompanied by knowledge regarding the value of money. Here’s a crash course in teaching kids the value of money, courtesy of Money Crashers:

1. Cash is king. If you’re dealing with teenagers, do not give them gift cards or prepaid debit card as a reward for grades. The tangible feeling of handling dollars and cents as they purchase the things they want will help them understand the finite nature of money and help them visualize what it’s like to develop a savings.
2. Get a job. In addition to earning money for good grades, if kids need more money, they should find part-time employment. For younger kids who aren’t already receiving an allowance, this could be doing yardwork for neighbors. For teenagers who are old enough, it could mean a paper route or other part-time job. The sense of accomplishment gained from earning money goes a long way toward teaching kids to value it.
3. Teach kids about giving. Doing good in society can take many forms, donating time and/or money. Developing a healthy sense of selflessness early in life can help a child build an appreciation for money, education and the value of life in general.

Sources

Money Crashers

New York Times

Exxon is paying high school students for grades

Republicans accuse Elizabeth Warren of having a “radical pro-consumer” agenda. (Photo Credit: CC BY-ND/David Quintana/Lost in the Ozone)

CNBC reports that the White House is struggling to fill the director’s chair for both the Consumer Financial Protection Bureau and the Office of Financial Research. Harvard professor and Obama adviser Elizabeth Warren may not have the stranglehold on the former, as was once thought, while multiple candidates for the latter position have balked at the prospect of six years of political infighting. Without clear leadership, both organizations will at best be all sound and fury, signifying nothing but the status quo for financially bruised consumers.

Fighting for political turf turns off OFR, CFPB candidates

The Office of Financial Research, which was established by the Dodd-Frank Wall Street Reform and Consumer Protection Act, will be charged with improving the quality of financial data available to policymakers, such as information regarding credit cards, cash advances and the payday cash advance industry.

However, if the White House fails to fill the leadership chair, the OFR will never reach its potential. Such high-profile candidates as Yale economist Robert Shiller (of Case-Shiller Home Price Index) have excused themselves from White House consideration because they think the six-year commitment and Washington war games aren’t worth the hassle.

An anonymous source close to the appointment process told CNBC that the OFR post requires a very particular type.

The position “needs a tough-guy-like attorney” who isn’t afraid of dogfights, said the source.

Check your radical pro-consumer agenda at the door

Republican critics of Elizabeth Warren claim that she’d be inappropriate for the office of Consumer Financial Protection Bureau director because of a “radical pro-consumer agenda” that would drown every consumer finance industry from credit card companies to payday cash advance lenders in penalty fees. Even though Prof. Warren is very close to the appointment process – President Obama has put her in charge of the search – Republicans and now even some Democrats and Independents are uncertain that Warren’s appointment would be confirmed.

Republican Sen. Judd Gregg of New Hampshire told ABC News that even considering Elizabeth Warren for the Consumer Financial Protection Bureau position is “a terrible adulteration of the process.” Such big-budget power (estimated as high as $500 million) in the hands of an appointee that can operate outside the bounds of Congressional oversight is unacceptable, said Gregg.

“My concern is that she would use the agency for the purposes of promoting social justice versus for the purposes of promoting better credit and having a stronger financial system,” said Gregg.

Enter Richard Shelby

Senate Republican Richard Shelby, the senior GOP member of the Senate banking committee, is considered the top Republican choice to head the Consumer Financial Protection Bureau. According to ABC News, Shelby vetoed the nomination of Joseph Smith to the Federal Housing Finance Administration and opposed appointing Nobel Prize-winning economist Peter Diamond to the Federal Reserve board. Clearly, Shelby knows how to oppose Democrat-favored appointees.

Sources

ABC News

CNBC

Credit.com News

‘Consumers need a cop on the beat’

Tax preparation giant H&R Block has lost significant ground since the tax preparation service cannot offer a cash advance against tax refunds this year. Image from Wikimedia Commons.

The loss of the ability to offer a cash advance against tax refunds has caused revenues to fall for tax preparation giant H&R Block. The latest earnings reports for the company indicate that revenues so far are less than expected this tax season. Earlier this year, the company was forced to abandon refund anticipation loans when a key partner was sued by the FDIC.

Tax season off to a slower than normal start

A decline in people paying to have their tax returns prepared has led to a decline in revenues for tax preparation giant H&R Block, according to CNBC. Block expects  January earnings will come close to breaking even, but activity began to pick up in mid-February. From Jan. 1 to Feb. 15, online returns prepared through H&R Block increased by almost 28 percent, though total digital tax returns only registered a 7.3 percent increase since the start of the year. Preparation fees for H&R Block have declined by 7.6 percent since the start of the year, and part of the loss is because the company is no longer offering the popular refund anticipation loan, a cash advance against an income tax refund.

Blocked from lending by suit against key partner

Short term loans against tax refunds are similar to payday loans, in that a customer is advanced cash immediately instead of having to wait for their tax refund. The refund is signed over to Block, and borrowers receive less than the total refund because fees are deducted. In December of 2010, H&R Block announced that the company would not be offering refund anticipation loans, a very popular product among lower and mid-income customers. A key partner in the financing of the loans, HSBC, was enjoined by the Federal Deposit Insurance Corporation from lending refund loans. Nearly 17 percent of Block customers took out a refund anticipation loan in 2010.

FDIC countersued by refund loan lender

A prominent tax refund lender has sued the Federal Deposit Insurance Corporation for interfering in the tax refund loan business, according to Business Week. Republic Bank and Trust, a bank based in Kentucky, is suing the FDIC and claims the agency overstepped its boundaries by labeling the loan products “unsafe and unsound” when the FDIC ordered Republic to stop lending the loans last month. Republic lent more than $3 billion in refund loans last year to almost 836,000 people. The bank observed a default rate of only 2.13 percent. The suit alleges that the FDIC is trying to coerce loan lenders into dropping a product that government officials don’t like, even though the product is popular.

Sources

CNBC

Business Week

The nation's largest banks may start limiting debit card usage, as legislators are targeting usurious bank fees. Image from Wikimedia Commons.

The largest banks in the nation may institute limits on how often debit cards can be used by account holders. Large banks are said to be hurting from laws which limit how much can be charged to retailers by banks when customers of those banks swipe their debit cards. Various acts of legislation have been aimed at curbing fees paid demanded by banks.

Cap on fees charged to retailers could prompt backlash

A law passed last year will cap the fees banks charge retailers when customers make purchases with debit cards. When a person pays for something with a debit card, the merchant is charged a fee by the bank that the customer belongs too, called an interchange fee. Last fall, the Durbin Amendment of the Dodd Frank Act gave the Federal Reserve powers to place limits on the fees that banks charge to retailers, according to ABC. The Fed proposed that fees be limited to 12 cents per transaction. The current rate is about 63 cents per transaction, though it isn’t likely that any of the largest banks in the nation will have to run for a cash advance to cover losses anytime soon.

Possible curb on debit purchases

It is rumored that the largest banks in the nation may begin imposing a limit on how many purchases people can make with their debit cards, or how large a purchase made with debit may be. The limit could be set as low as $50 to $100 in order to restrict customer use of debit cards, and thus not lose too much revenue. Interchange fees currently make up about $80 billion in revenue for the banking industry. Vikram Pandit, CEO of Citigroup, maintains that the fee caps will restrict available credit for banks and loan lenders, according to Bloomberg.

Trend of rising fees

The nation’s largest banks have been raising fees and cutting programs such as free checking for months, as an overall trend has been emerging of commercial banking trying to extract more revenue from customers. However, people can avoid dramatic fee increases by banking with community banks and credit unions. Just about every city in America, from Scottsdale to Birmingham, has a credit union or two open to just about anyone.

Sources

ABC

Bloomberg

Payday lenders are having to turn to Indian tribes to form partnerships that can keep their businesses open. Photo: Chika/Flickr.com/CC-BY

In order to circumvent state regulations, payday lenders are turning to Indian tribes to stay in business. Indian tribes are protected legally by a doctrine known as sovereign immunity, which exempts them from some state and federal laws. Demand is well established for payday loans, but states are starting to regulate them out of business.

Stifling regulation sends payday lenders to tribes for legal shelter

Payday lenders have been subject to an increasing amount of regulation, to the point it is difficult for operators to keep their doors open. Some lenders are beginning to form business partnerships with Indian tribes in order to circumvent strict regulation that prevent lenders from being able to make a living in the payday loans industry, according to the Wall Street Journal. Indian tribes are protected by a legal doctrine called sovereign immunity, which grants certain exemptions from regulation and lawsuits. Payday loan lenders need only incorporate their business on tribal lands and form an agreement with the tribe in order to offer a cash advance in whatever manner the firm sees fit.

Sovereign immunity

Essentially,  an entity with the protection of sovereign immunity is protected from prosecution or lawsuit, but the extent of immunity varies. Native American tribes and reservations are considered nations unto themselves, and businesses incorporated on tribal lands are not subjected to the laws of the state or states the reservation is located in. For instance, say a short term loan lender incorporates on a reservation located in Arizona but doesn’t have offices on the reservation. Even though the loan company is not located on a reservation, it is incorporated on tribal land. Sovereign immunity exempts the company from having to comply with Arizona law regarding small loans.

The scourge of payday loans

Payday loans are treated like a leper by some within the financial services industry. Even though the demand for the services is well established and similar businesses existed before the Statue of Liberty was built, many have called for the industry to be legislated out of existence. Payday lending as an industry represents more than $10 billion in the U.S. economy as a whole.

Sources

Wall Street Journal

Jackson Hewitt is suing H&R Block for defamation. Image from Wikimedia Commons.

Tax preparation giant H&R Block is being sued by Jackson-Hewitt over an ad campaign blasting the short term loan program offered by Jackson Hewitt. Both companies offer some form of a refund anticipation loan or a loan against an income tax return. Tax season is when both companies make the bulk of their revenue.

H&R Block’s short term loan ads land company in court

An advertising campaign run by tax preparation giant H&R Block has resulted in the company being sued by competitor Jackson Hewitt, according to Reuters. The lawsuit alleges that H&R Block deliberately misled consumers about Jackson Hewitt through the commercials about a program called “Second Look,” which mentions Hewitt by name. The commercial offers a free review of returns prepared by competitors. The commercial says two of every three returns prepared by Hewitt had errors and had missed deductions. Hewitt is also claiming that Block made false statements about the short term loan program Hewitt offers, being refund anticipation loans, or RALs. Hewitt maintains that customers can get a loan of up to $1,500 in day.

The tax cash advance

Refund Anticipation Loans are a cash advance against an income tax refund. Filers who are due a refund can get a check for their expected refund amount, minus a fee for the preparer and loan lender. The tax preparer files the return and takes the income tax return as payment, while the borrower walks away with instant cash rather than waiting for a deposit or a check. H&R Block is unlikely to be able to lend these loans this tax season, as a key financier and partner of Block, HSBC, was forbidden from funding the loans by the U.S. Treasury.

IRS advises to e-file

The Internal Revenue Service does not have an official position on RALs but suggests people electronically file and elect to have their refund directly deposited. A refund can be deposited electronically in far less time than it takes for a paper check to arrive, whether the check is being sent to Jackson, Mississippi, or to Hawaii.

Source

Reuters

Hedge fund billionaire John Paulson made mad money betting against the housing market. (Photo Credit: CC BY-ND/Global Astrology Blog)

Hedge fund manager John Paulson bet against the health of the U.S. housing market by funneling money into credit default swaps against subprime mortgages, which effectively ensured that as homeowners defaulted he would receive a massive cash advance on his investment in failure. Thanks to the bursting of the U.S. housing bubble and some shrewd choices with U.S. financials, John Paulson is a billionaire.

John Paulson and the Citigroup venture

To some, hedge fund manager John Paulson represents all of what’s wrong with Wall Street. After earning approximately $15 billion betting against the U.S. housing market in 2007 – and being labeled a “guru” for doing so – John Paulson moved to the other side of the investment speculation fence. He bet that the U.S. economy would soon rebound. This involved a series of investments in various indexes, as well as an “after the fall” outlay in favor of rebounding house prices and a bet on high gold prices. Paulson’s stake in Citigroup earned his hedge fund investors utilizing Paulson & Co. about $1 billion in 2010. Over the past year, Citigroup’s share price shot up 50 percent.

Paulson & Co. is currently responsible for $35 billion in investments. Where most hedge funds eschewed the more volatile elements of the market last year, Reuters reports that John Paulson and company took small financial lumps early in 2010, yet managed to swing things around into double-digit gains. The Paulson Advantage Plus Fund rose 17 percent for the year, while Paulson’s gold investments jumped 35 percent in 2010.

Is 17 percent all that special?

The Globe and Mail might have a reasonable point regarding the scope of John Paulson’s success when it claims that the Paulson Advantage Plus Fund’s 17 percent gain isn’t all that different than the 15 percent gain experienced by the S&P 500. But the Canadian newspaper’s viewpoint could just as easily be considered sour grapes. While it may be true that John Paulson’s “against-the-bubble” investing strategy undermined the economy at the expense of millions, the investments were made in a Wild West-style climate where federal regulators were about as effective at cleaning up the town as the milk-and-cookies sheriff who hesitates before firing. Yet few except the excuse.

Sources

The Guardian

The Globe and Mail

Reuters

Wikipedia

John Paulson and Joe Stiglitz on the mispricing of risk

Ven-a-Care busts drug companies for Medicare fraud. CC by http://www.medicare.gov/Wikimedia Commons

It’s not every day a small pharmacy generates $168.7 million in annual revenue., but the Los Angeles Times reports that the specialty pharmacy Ven-A-Care of Florida Keys, Inc., is no mere small pharmacy. The company acts as a whistle-blower that reports the misdeeds of pharmaceutical companies that overbill Medicare and Medicaid. While the company has been called a “professional bounty-seeker” by critics, the truth is is that tens of millions of taxpayer dollars are at stake.

Purpose of Ven-A-Care

In its whistle-blower capacity, Ven-A-Care researches the price it pays for drugs versus those reported by big pharmaceuticals to the federal government for reimbursement purposes. Ven-A-Care is able to file a lawsuit for the U.S. government if there is a discrepancy.

For example, a 2005 case involved a 1-gram vial of vancomycin. Medi-Cal was charged $58.37 for it while pharmacies were charged $6.29 each. In another case, the medication atenolol charged Medi-Cal $70.30 while pharmacies only paid $3.05 for 50-milligram tablets. These examples are just the tip of the iceberg, says that Los Angeles Times. The State of California has recovered at least $95 million of late, thanks to Ven-A-Care’s efforts.

“I think Ven-A-Care has played a predominant role in alerting state and federal governments about … fraud,” said California Supervising Deputy Attorney General Nicholas Paul.

How the Ven-A-Care cases work

Since 2000, about 18 health insurance over-billing cases have been won by Ven-A-Care. While the small pharmacy has collected about $380 million in bounty funds, state and federal governments across the U.S. have pulled in about $2.2 billion.

“(Ven-A-Care is) cleaning up a huge cesspool,” said Nevada attorney and former Medicaid fraud investigator L. Timothy Terry. “Without their efforts, taxpayers would be gouged out of I don’t know how much money.”

Making sure payments have a cap

Insiders like former federal healthcare fraud investigator Michael Loucks believe that companies like Ven-A-Care are taking advantage of a near-limitless jackpot system. Now a defense attorney, Loucks told the Times that a $2 million cap should be instituted, large enough to still encourage whistle-blowers, but small enough to keep the government’s expense under control.

Jin Breen is the attorney for Ven-A-Care. He says that the cap won’t work. A big return has to be paid out because of the amount of legal costs that come when pursuing big pharmaceuticals.

Citations

Los Angeles Times

Medicare fraud hurts U.S. taxpayers

Legislators at the Mississippi state capitol have stalled passage of a new payday loan regulation. Image from Wikimedia Commons.

The Mississippi state legislature has stalled a bill that would further regulate payday loan lending in the state. States have increasingly passed legislation regarding payday lenders, usually to reduce interest rates. The new regulatory bill is stalling as legislators cannot agree on terms.

Payday loan regulation bill stalls in Mississippi legislature

The state legislature of Mississippi, in session in Jackson, has stalled in passing a new law that would put further regulations on payday loan lending, according to Bloomberg. The new bill would extend repayment periods and cap interest rates on payday loans in the state. However, the new payday loan law is not going anywhere until both houses can agree. The Mississippi House of Representatives passed a version that would allow borrowers 21 days to repay cash advance loans less than $200 and 28 days to repay loans of $201 to $500. The Mississippi Senate version gives borrowers 21 days to repay loans of $300 or less, and 28 days to repay loans of $301 to $500. The current laws in the state regarding payday lenders expire in 2012.

Consumer Financial Protection Bureau may target payday lenders

It has been anticipated for some time that the Consumer Financial Protection Bureau may end up going after payday lenders, but that may not be the case. The Bureau was created as part of the Dodd-Frank Act and is headed by Elizabeth Warren, who was appointed to the post by President Obama. The agency has yet to do anything, as it isn’t an active agency yet, but it may not do much with the payday industry, according to the Motley Fool. The CFPB can’t cap interest rates, but it can call for greater disclosure from lenders.

Disclosure works in payday lenders’ favor

Greater amounts of disclosure would likely act more in the interest of payday loan and cash advance firms than banks. Given the number of fees that credit card and other accounts have tied to them, and the scant fees assessed by payday lenders, more people may end up taking out a payday loan. Most payday loan lenders already disclose all fees upfront due to the Truth in Lending Act.

Sources

Bloomberg

Motley Fool

Bank of America has just set aside some cash to compensate Freddie and Fannie for bad guaranteed loans the bank is responsible for. Image: MoneyBlogNewz/Flickr/CC-BY

Bank of America has reached an agreement to compensate Freddie and Fannie for selling them toxic guaranteed loans. The largest bank in the nation will pay more than $3 billion to the troubled mortgage houses. B of A is expected to take a loss on the deal.

Bank of America to make amends for bad guaranteed loans

Bank of America has finalized an agreement to compensate Freddie Mac and Fannie Mae for toxic mortgage assets sold to the two mortgage houses, according to MSN. Not all of the bad guaranteed loans were sold to Freddie or Fannie by Bank of America, however. The settlement is largely over loans that were originated by Countrywide, which was purchased by and merged into Bank of America in 2008. Prior to that, Countrywide had been one of the largest loan lenders in the nation for mortgages. Of all people who bought a home from New York to San Diego and all points in between before the 2008 mortgage crisis, about one in five got their home loans from Countrywide. Bank of America took over responsibility for all Countrywide assets, including settling with Fannie and Freddie.

Expected loss for largest national bank

It is expected that Bank of America, the largest bank in the nation, will file a $2 billion loss for the fourth quarter of 2010. The bank has set aside more than $3 billion for Freddie and Fannie for Countrywide mortgages and others sold to the mortgage houses. B of A has already bought more than $11 billion in bad bank loans from the two houses, with around $2.7 billion left. Still, Bank of America probably won’t need a cash advance to see the agreement to the end.

Mortgage houses still owed

Numerous large banks still owe Freddie Mac and Fannie Mae some considerable sums, as toxic mortgage assets sold to the two have to be either bought back or compensated for. The government still runs the two companies.

Source

MSN

Consumers are getting fed up with having to give the bank a cash advance to use their own money. Image from Wikimedia Commons.

Americans are getting fed up with having to give a cash advance to banks to use their own money. In order to get a quick payday out of customers, major banks are stepping up account fees, ATM and overdraft fees. Account holders are not amused.

Anger over giving a cash advance to banks grows

Most American consumers don’t think it’s fair that a person should have to give a money to a bank to use their own payday cash, according to ABC. The Office of the Comptroller estimates that there will be 80,000 or more complaints by consumers about their financial institution by the end of the year. That would make it the highest level of dissatisfaction with banks since consumer dissatisfaction with banks began being monitored 15 years ago. New regulations were passed last year that helped, but it hasn’t stopped banks from trying to find new ways to extract instant cash from their customers.

Frustration over overdrafts

The bulk of consumers’ ire is about overdraft fees. A practice among some large banks is to clear large transactions first. This way, if multiple overdrafts occur due to a few small purchases, those fees stack up.  Say a person pays their power bill, buys a pack of gum, a coffee and a sandwich over the course of one day with their debit card, but only has enough money to cover the power bill. The bank will clear the largest purchase first. That way, the smaller purchases made when the account was in overdraft can all result in the most fees possible. This practice makes a lot of quick payday cash for banks.

Interest rate can be astounding

Overdraft fees can be viewed as sort of a loan until payday, as the customer is technically borrowing money and paying a fee for it. That said, a $35 fee on a $1 overdraft, is 3,500 percent in simple interest. That works out to 1,277,500 percent APR.

Sources

ABC

There are many ways a holiday loan can help this season. (Photo: PamelaVWhite/Flickr/CC-BY)

There are many ways you can benefit from a holiday cash advance. Christmas is just around the corner, and if your budget unexpectedly falls apart before it gets here, you’re going to need some help. With a holiday loan, you can pay off surprise bills and quickly get your finances back on track. Even better, you can use the money to take advantage of all the savings opportunities available around this time of the year — for a limited time only.

Stay out of the red with a holiday cash advance

People everywhere can use a small holiday cash advance loan. You don’t have to wait two whole weeks to pay an unexpected bill or start saving on your holiday purchases. In fact, waiting too long to take care of short term money issues can cause you more problems in the long run. If you think you are in danger of over-drafting your bank account because poor Rover had to make an emergency visit to the vet, these loans can help keep you in the green. You can take out a small loan and pay it back in a couple weeks, eliminating the potential cost of bank fees and other penalty charges. Who needs extra stress this holiday season?

Holiday cash advance loans online

If you want to get the money you need the fastest and easiest way possible, apply for your holiday cash advance directly online. You can complete the online application form in minutes, get an answer in seconds and be on your way to enjoying the holidays like you’re supposed to. You can apply for up to $1,500 and have the funds sent straight to your bank account, upon approval. Because Personal Money is backed by a vast number of reputable online lenders, your chances of approval is much higher compared to other providers.

So, don’t let the holidays bring you down this season. Apply for a quick holiday cash advance today and have a merry Christmas.

Apply for fast Holiday Loan online | Start HERE

Need helping saving this season? Holiday money loans can help. (Photo: Lin Pernille Photog/Flickr/CC-BY)

If you’re like most people during the holidays, you are either in need of some extra cash or are flat-out broke. Fortunately, getting a holiday cash advance can quickly help you through your short term cash needs. It is certainly the best time to spend, and if you’re behind on bills and unexpected expenses, you could miss out on all the money-saving opportunities of the season.

Find the best holiday cash advance lenders

There are many lenders who offer holiday cash advance loans. But finding the right direct lenders can be difficult, as you need to research different providers to find one that’s right for you. Sometimes, just when you think you have found the right lender, your credit becomes an issue. With a less-than-perfect credit score, to most lenders, you are automatically considered a high-risk borrower who’s unable to make payments on time. That is not always the case, however. For this reason, Personal Money Market strives to make borrowing money a pleasant experience by providing fast, convenient financing options available to almost anyone in need of a small holiday money loan.

How to get a holiday cash advance — fast

Personal Money Market is backed by some of the most reputable direct payday lenders online. We will help you find the lender that can cater to your specific needs. With just one application, you can save valuable time by allowing us to do the research on lenders for you. We’ll sort through our network of lenders to deliver the best — in just a few short minutes.

A merry season with holiday money loans

There are many ways a holiday cash advance can help with your budget this season. Saving money has become the prime focus today, and the holiday season is the perfect time to do just that. With unbelievable deals and incredibly low prices, shoppers can save big on the items they want. So if a holiday cash advance can help you save hundreds this season, it may just be worth considering.

Get a cash advance loan online today | Start HERE

Beware of debt relief companies; some are legitimate, but some are trying to sell you a jackalope. Image from Wikimedia Commons.

Televisions and e-mail in-boxes have been flooded with ads for debt consolidation loans and debt relief. In order to crack down on fraudulent practices, the government has enacted stiffer regulation on debt consolidation services. Consumers should make sure they aren’t putting instant cash into the wrong hands.

FTC cracks down on debt relief fraud

As the Great Recession began, companies began springing up all over the place, offering fast debt relief and debt consolidation loans. All a customer had to do was hand over an upfront fee and make monthly payments, and their debt would be gone before they knew it. A lot of these companies turned out to be taking a cash advance for services that were never rendered. After a lot of complaints to the Federal Trade Commission, new rules were imposed in late October. However, abuses have continued, and attorneys general in several states have been filing suits against the impostors. A common scam is to ask for some money now for a retainer and say a staff attorney will get a person the debt settlement relief he or she needs, according to the Financial Times. Then, the “company” pockets the cash and never settles a thing.

Be careful with debt relief programs

If something seems too good to be true, it usually is. If a person is thinking about consolidating debt through an agency, there are a few things to watch out for. If a company asks for an upfront fee for debt consolidation, it’s probably a scam. There are plenty of non-profits out there that help people with debt management. Always check out a potential debt settlement company with the Better Business Bureau and the National Association of Financial Advisors.

Things you can do in the meantime

If you’re trying to get rid of debt like personal loans, installment loans, or credit cards, there are always things that can be done. Some creative budgeting always helps or payday loans if a buffer is needed.

Kim Kardashian may seem trustworthy because she's a celebrity, but get her prepaid card and pay dearly with fees. Image: David Shankbone/Wikimedia Commons/CC-BY

A new product to get celebrity endorsements are credit and debit cards. Celebrity debit cards work like a typical card, except that because a celebrity endorses it, the fees are higher than normal. A person would be better off with a cash advance than some of these cards.

Consumers urged to avoid the ‘Kardashian Kard’

Not long ago, a line of prepaid debt cards was announced by the Kardashian sisters. Celebrities sometimes lend their name or likeness to a product because it will sell. That isn’t so bad; plenty of products that have endorsements that are perfectly fine. However, their card has been slammed, according to US News and World Reports, as being disgustingly expensive. For instance, every ATM withdrawal from the “Kardashian Kard” costs $1.50, on top of ATM fees. It also costs $9.95 to get one, and a monthly fee of $7.95. The “Kard” has to have six to 12 months of fees paid to even use it, and it costs $1 every time a person puts money on the account. Basically, a people using the Kard have to give the Kardashians and MasterCard some money now every time they want to use their own payday cash.

Maybe a payday advance would be better

A six-month Kardashian Kard costs $59.99, considerably more than the average payday loan costs to borrow. According to the Washington Post, the normal fee for similar pre-paid debit cards is $10 per year. Though a prepaid card like the Kardashian Kard or the Green Dot Card may not carry as many fees as some bank accounts, it seems ridiculous to be giving up that much from pay day for use of a debit card. It is better to get a checking account through a credit union, as credit unions have far fewer fees than traditional banks. They also don’t have as many account fees, and credit unions benefit the community, not wealthy celebrities and shareholders who pocket the proceeds.

Better options

If you need a small loan until payday, getting a loan from a payday lender may be better than getting one of these celebrity debit cards. The interest saved from card fees alone may be a huge savings. You can read more in the Payday Loan Facts and Statistics Report on Personal Money Market.

You can get a cash advance on checking or a credit card, but you may be better off with a payday loan. Image from Wikimedia Commons.

Fees for a cash advance from a credit card or on a line of credit are rising. After the passage of the CARD Act, companies that offer loan credit through credit cards have to find ways to boost their bottom line. If it keeps up, consumers may be better off with a payday loan.

Cash advance fees are going up

The most common method of getting instant cash from credit is to go to a bank, in case you run into overdraft or need a loan until payday. A person simply draws out a certain amount of instant cash from their line of credit into their checking account, and then the balance is paid off the second the next deposit into said account is received. Bank of America and Wells Fargo charge about $2 per every $20 loaned, or about $10 per every $100. Another way to do it is to get a cash advance from a credit card. Essentially, a person withdraws money from their line of credit on the card, and has to pay a fee on top of the monthly interest. Those fees, according to Bankrate, have been increasing since the passage of the CARD Act of 2009.

Then there is a payday loan

Granted, the fees have only gone up 1 percent in that time. However, when that balance, along with that fee, is added to a balance, the interest on it can add up over a long time if it isn’t paid off. Lines of credit – like credit cards – are revolving, or in other words a person has to make payments. In essence, credit cards are revolving installment loans with a plastic card tied to them. Checking advances, like payday loans can be, have to be paid off with the next deposit.

The risk

The only thing is that a payday loan lender has more flexibility with payment plans. A bank will simply take the amount owed from a cash advance, and not offer a payment plan. A payday loan store can offer a little more flexibility. You can read more in the Payday Loan Facts and Statistics Report on Personal Money Market.

The wealth gap between rich and poor Americans is growing, but people don't want mansions handed to them. Image from Wikimedia Commons.

The growing wealth gap in America is a disturbing trend. The wealthiest of Americans are getting wealthier, and the gap is wider than most people realize. With conditions like these, it’s no wonder people are running for payday loans.

Wealth gap is astounding

The gap between the wealth held by the richest 20 percent and the rest of the nation is growing, and it’s significantly larger than a lot of people realize. According to the Los Angeles Times, recent data indicates that the richest 20 percent of Americans hold about 85 percent of the wealth. The poorest 40 percent hold close to zero, and the middle 40 percent have between 14 and 15 percent to split between them. That’s not a lot of payday cash to go around for the 80 percent of the nation. It was also found that most Americans did not realize it was that wide a gap. The study that delved into these issues, done by Edward Wolff of New York University, also revealed that Americans, both liberal and conservative, want the gap to narrow but are mostly opposed to a mandated redistribution.

Americans prefer to work for it

If the study done by Wolff is correct, the typical attitude of Americans is that they do not want anything given to them, but instead want more available opportunities to get ahead. It gets harder to have an opportunity to get ahead if things like credit cards and other debts get in the way. People making their way in the world is difficult indeed if most of a persons’ proceeds from pay day end up going toward debt. Because the costs of so many things — such as college education and medical care — are skyrocketing, it’s no wonder so many people are rushing out for a cash advance or a payday loans.

Obstacles are many

Achieving the American Dream is getting harder for a lot of people. Working life away to pay debt is not something most people envision, but it is something people are encouraged to get into. You can read more in Payday Loan Facts and Statistics Report on Personal Money Market.

The beautiful 401 Trail located north of Crested Butte, Colo. (Photo: TRAILSOURCE.COM/Flickr/CC-BY)

Almost anywhere you go there are resources that can help you find fun trails to explore. There are many bike trails to consider, and if you aren’t into biking, you can hike them, instead. There are websites with GPS coordinates and maps to help you find your way. There are many groups of people who are focused on creating, improving and maintaining these trails for everyone to enjoy.

Finding a fun trail may be easier than you think

Rather than just walking around your neighborhood and dealing with the distraction of city traffic, intersections and such, you could make a short drive to a trailhead, jump out and get right to enjoying the beauty of nature. Depending on where you live, you may not even need a vehicle — or a payday advance to pay for gas and unnecessary equipment — to visit these fantastic, secluded trailheads.

Great resources to help you locate specific trails

There are books written by enthusiasts on popular, specific trails in different areas. You can get a detailed description of the trail, how long it is, how difficult it is and more. Choosing easier and shorter trails allows you to really enjoy your beginning experience. And as you build your skills and endurance, you can shoot for longer, more challenging trails to explore. You can improve on your physical health and have fun doing it. Pack a fun, healthy snack for your trip and bring your dog along for the adventure.

A wonderful past time

You don’t need a payday loan or a cash advance for fancy, expensive equipment to enjoy this wonderful past time. It’s a terrific way to spend quality time with the kids or just get out of the house without spending a lot of money. Take the opportunity to learn and teach others about the geology, geography and history of your area.

Watch out for new ATM and overdraft fees, as you may be better off getting a payday loan. Image from Wikimedia Commons.

Overdraft and account fees are the way banks get a lot of instant cash from their customers. Granted, a fee of some sort is not unreasonable in some situations. However, bank fees generate quite the pay day for the typical banking institution.

Fees rise as laws force banks to find more instant cash

Legislation passed earlier this year forces banks to adhere to new rules concerning overdraft fees and other account fees. For instance, customers now must be asked whether they want overdraft protection. Customers also have to be asked if they would prefer to get a cash advance from the bank to cover overdrafts or just opt out of a transaction. However, because practices that omitted that information are no longer legal, banks and credit unions now have to find more ways of generating income from customers. For instance, according to CNN, ATM fees have risen by 5 percent this year. Overdraft fees rose 3 percent on average, and the average overdraft fee is now $30.47 per occurrence. That’s actually about the same cost as a small payday loan.

Interest in excess of what is excessive

The interest rates on overdraft fees are insane. For instance, let’s assume a person spends $200 more than he has on his debit card, which a lot of people will do this holiday season. Assume also that the person has done this with three purchases, at $30 per occurrence, for a total of $290 that he will have to repay the bank when he gets his next infusion of payday cash. That’s 45 percent in simple interest, but in APR, that’s 2,340 percent interest.

Banks make a lot of money from fees

Overdraft fees are the greatest method of generating revenue from bank customers. Considering that the average person pays $620 per year in fees or more, the average person may be better off getting a payday loan a few times per year to head them off. You can read more in the Payday Loan Facts and Statistics Report on Personal Money Market.

The Federal Reserve is reporting that fewer consumers are borrowing installment loans and credit card loans. Image from Wikimedia Commons.

Economic data is indicating that demand for large consumer loans, like installment loans and credit card loans, has declined. The Federal Reserve has reported that there is actually plenty of available instant cash for lending, but no one wants to borrow. Americans are tightening their belts, as fewer people are seeing debt as an asset.

Consumer installment loans less popular

The Federal Reserve has reported recently that the demand for larger finance loans, such as personal loans and installment loans for consumers from banks, has been declining drastically, according to Bloomberg. Banks have been loosening credit restrictions for the past several months running, and fewer people are seeking loan lenders. Mortgage demand has also been weak. Granted, high unemployment makes just about anyone uneasy, but it seems that Americans are starting to reach a different conclusion about debt than in the past few years. Many feel it’s better to pay off and close the credit cards or decline a cash advance on home equity than get further in the hole.

High debt levels receding

Currently, there is about $11.6 trillion in debt held by Americans. That means a lot of payday cash has to get sent to the bank instead of one’s own pocket. The amount of debt that people have been willing to take on is unprecedented in American history. With the costs of owning a home or getting a college education, or even getting basic medical care, it’s no wonder some people wind up running for payday loans at times to keep up. After all, the more debt people are saddled with, the less extra cash they have in their own pockets.

Consumers avoiding debt

Though some things are seen as good debt– such as a home loan or a college loan — a large debt load is never good. It’s no wonder that the fastest growing market segment in finance is payday lending. You can read more in the Payday Loan Facts and Statistics Report on Personal Money Market.