Retail stores are branching out into financial services such as check cashing to appeal to the growing number of consumers wary of banks. Image from Wikimedia Commons.

Giant retail store chains have begun branching out into the world of alternative financial services. Store chains such as Walmart, Kmart and Best Buy have started offering financial services to unbanked customers — those without bank accounts. Almost 20 percent of Americans do not have a bank account.

Alternative financial services at retail stores

Large retail chains are beginning to offer alternative financial services to customers who don’t have bank accounts, according to the Washington Post. Services such as money orders and check cashing have been available in retail stores for years, though some retailers are expanding their offerings. Walmart offers check cashing and sells prepaid debit cards in stores and is expanding by putting a financial services section called Walmart Money Center in stores. The Money Centers, which are currently in more than 1,100 stores nationwide, offer check cashing, money orders and prepaid card services in a bank or credit union-like format. The company is planning to expand the number of Walmart Money Center locations from Alabama to Arizona to Alaska, but Walmart does not appear to be planning on offering cash advances yet.

Kmart and Best Buy expand financial services

Retail chains Kmart and Best Buy are also expanding into offering financial services to customers. Kmart is offering pilot programs of check cashing, money orders and prepaid debit card services in some stores. The layaway program that Kmart re-launched at the height of the recession has also been very popular, as fewer people want to use installment loans or credit cards to make purchases anymore. Best Buy has launched a series of kiosks run by Tio Networks that customers can use as an electronic bill paying system. Instant cash is fed into the machine, which uses an electronic payment network.

The unbanked

The unbanked are people who do not have a bank account of any sort and use alternative financial service providers such as check cashing services to handle transactions. About 70 percent of the unbanked earn $30,000 per year or less and many choose not to patronize banks because of bank fees or mistrust of banks. Surveys done by Walmart indicate that one in five customers do not have a bank account.

Source

The Washington Post

H&R Block won't be offering any short term loans against tax refund checks this year. Image: MoneyBlogNewz/Flickr.com/CC-BY

This year, H&R Block will not be offering any short term loans against tax refunds. Refund Anticipation Loans, or RALs, are loans lent by a preparer against a potential refund, less a fee. The banking partner of the company was forced out of offering the loans by regulatory bodies.

No more short term loans from H&R Block

The nation’s largest tax preparation service, H&R Block, previously offered a credit product to customers called a Refund Anticipation Loan. The loans, RALs for short, are offered by many tax preparation services. It’s a short term loan against an anticipated tax refund, with a fee subtracted from the refund total. The preparer cuts a check or dispenses instant cash, and the refund check is turned over to the preparation service. In other words, if a person should hypothetically get an $800 tax refund, but needs money now, he or she can get an RAL for $725 against the $800 return. The return check goes to the preparer, if the return is accepted. Recent regulatory action has forced H&R Block to stop offering the loans.

HSBC forced out of bankrolling the loans

According to USA Today, the former partner of H&R Block in funding the cash advances against tax refund checks was HSBC. HSBC was ordered not to proceed with funding any of this type of quick loan to customers by the Office of the Comptroller of the Currency, part of the Department  of the Treasury. This forces HSBC to withdraw from its agreement with H&R Block. H&R Block tried to sue to keep HSBC in the agreement, but was not successful. H&R insists it will have alternatives, but there is likely to be some loss in business as customers from Kansas City to Chicago to San Diego will have to seek RALs from other preparers.

IRS cautions against using RALs

The Internal Revenue Service has long cautioned people not to take RALs against tax refunds. The IRS recommends that people use e-filing, as e-filing through the IRS or affiliated E-file programs is free for some taxpayers, and refund checks can be direct deposited in a couple weeks.

Source

USA Today

Unless one wants small loans, the credit market's incredibly high credit rating requirements leave many grasping at straws when they need financing. Image from Wikimedia Commons.

Demand for bank loans for housing is very low, even though rates are at the lowest in decades. It’s great for those with perfect credit scores, but small loans until payday may be the only credit available for a lot of people for some time.

Demand for mortgage loans drops

The bottom fell out of the real estate market, and it has been scrambling to get back to health ever since. There were some signs of life following the homeowner tax credit, but since it expired, demand for bank loans has stayed low. In fact, according to USA Today, the percentage of Americans counted as homeowners is at the lowest level in more than a decade. The 66.9 percent of Americans that own their homes, or have secured financing through a loan lender to buy a home, has not changed all summer, indicating that people either don’t want, or can’t get a loan to buy a house. It is no surprise that the only people who can get financing have near perfect credit.

Small loans might be all that is left

Small loans like payday loans or cash advances may be the only source of credit left for many people. It’s a growing segment. The payday lending industry began sometime in the late 1980s, and by the early 2000s, had more locations open than McDonald’s or Starbucks. Credit is something that will always be in demand, including a loan until payday, even if states are starting to regulate payday loans out of business.

Recovery will take some time

The only credit segment in the economy that is still booming is for small loans for people with bad credit. Payday lenders only started because mainstream finance wouldn’t touch the people they sought to extend a hand to. It may take awhile before things are back to normal. You can read more in the Payday Loan Facts and Statistics Report on Personal Money Market.

Ignoring mainstream consumer debt while criticizing payday loans as a debt trap is like killing the anchovies to save the sharks. Image from Wikimedia Commons.

Even with a down credit market, consumer debt levels make a payday loan debt trap seem like small potatoes. Most studies of the payday lending industry indicate that all payday lenders in America do less than $50 billion a year in business. There is 20 times that amount in outstanding debt on credit cards. Consumer debt, which people are encouraged to take on, is more of a debt trap than any payday loan could be.

$11 trillion debt trap is not from payday loans

According to Fortune, the mortgage industry does far more in business than payday loan lenders do. In fact, there is $10.6 trillion in outstanding mortgage debt. Mortgages, if they are configured with prepayment penalties, are meant to keep people paying.Credit cards are, too. There’s about $822 billion in debt on credit cards. Aside from mortgage loans and credit cards, installment loan debt, or debt from student loans, auto loans, and so forth, totals $1.6 trillion. Even more astounding is that these figures are a reduction from previous years.

The payday loan industry could not compete if it wanted to

The payday loan industry is 20 times smaller than the credit card industry.  The sum total of the all cash advances and payday loans lent out is less than $50 billion per year. Furthermore, most studies of profitability of the short term loan industry indicate profits at the largest of payday lenders are 10 percent or less. With such small margins for profit, according to the research that has been done, there is no way that any loan until payday is nearly as bad as critics contend.

Small fish in a huge pond

Payday loans are such a small portion of the overall credit market, that it seems ridiculous to single them out compared to other sources of debt. However, payday lenders don’t have the benefit of multi-billion dollar ad campaigns. You can read more in the Payday Loan Facts and Statistics Report on Personal Money Market.

Social crusaders want the payday advance industry regulated, even out of business. However, a lot of the industry already regulates itself. Image from Wikimedia Commons.

Many critics of the payday advance industry have opined that the industry needs greater regulatory control. Numerous states have put interest rate caps, effectively price ceilings, in place which make it hard for loan lenders to make a living. How many payday loans a person can borrow has also been limited by statutes. The calls for new laws rarely address how much self-regulation the industry already does.

Case for regulating payday advance loans

There have been numerous campaigns and calls for the payday advance loans industry to be regulated. Some people want cash advances as a product regulated completely out of business. To be fair, there are “bad apples” in the industry. In fact, a debt collector for a payday loan lending outfit in Oklahoma is being sued for violating the Fair Debt Collection Practices Act by impersonating a government official, according to Consumer Affairs. It would seem that there should be strong laws set in place against short term loan lenders so that they cannot abuse people with impunity. However, the payday advance industry has been self-regulating itself for years.

Best Practices

There are trade organizations to which payday loan lenders belong at local, state and national levels. Many of these organizations set a code of ethics for themselves, known as Best Practices. The Best Practices are often similar if not the same across trade organizations. For instance, there is disclosing rates and fees up front to customers. Practices also will limit the number of “roll overs,” or renewal of loans to customers if there is a pattern of repeat borrowing. They also mandate adherence to the law regarding collections, and encourage customers to report lenders not in compliance with Best Practices to both the organization a lender belongs to, and also to authorities.

Look for membership

A potential payday advance loan customer should check out a prospective lender, and see if they are affiliated with any such organization. There should be a seal of membership in a payday loan store or on a website. Look for members of the Online Lenders Alliance, Community Financial Service Association of America or Financial Service Centers of America. You can read more in the Payday Loan Facts and Statistics Report on Personal Money Market.

Cash advances don't cause SWAT teams to get called in. Image from Wikimedia Commons.

Claims have been made that when lenders offering cash advances move into an area, crime is sure to follow. There have been many problems throughout history attributed to things that have nothing to do with them. For instance, crime used to be blamed on people drinking alcohol. When Prohibition went into effect, violent crime increased at least fivefold. Crime and cash advances have nothing to do with each other.

Of crime and cash advances

People who aim to cure society of its ills, perceived or real, usually have good intentions. That said, sometimes ridiculous claims can be made about what causes the evils they rail against. For instance, there have been claims that cash advances and cash advance loans lenders cause the crime rate to rise. The idea is that payday loan stores move into a neighborhood and get people hooked by their short term loans. Then the people who are borrowing money get desperate and turn to crime. If it were true, then neighborhoods that don’t have lenders offering cash advances would have lower crime. As it turns out, that is not the case.

Neighborhoods with lenders and crime rates

A study from 2010 by Heather Luea looked at crime rates in neighborhoods that had cash advance and payday loan lenders. The study also looked at neighborhoods that did not have short term lenders. The study found that neighborhoods in which payday lenders were present or had a higher concentration of them, actually had lower rates of property crime. There was an increased amount of violent crime, but the increase was negligible – less than 2 percent. Neighborhoods that have payday loan shops nearby, in fact, have lower property crime rates than wealthier neighborhoods with no payday lenders present.

Interesting attributions

Few throughout history have attributed crime to anything other than poverty. When people are desperate for money, they are more likely to turn to criminal activity. Payday loans and cash advances are only available to people who can repay them, so a link between payday lenders’ locations and crime seems a suspect attribution at best. You can read more in the Payday Lending Facts and Statistics Report on Personal Money Market.

Unexpected expenses can be met more cost-effectively over time with a personal loan instead of a credit card. Image: Thinkstock

For borrowers with good credit, a personal loan could be a more sensible option than a credit card. In fact, more banks have been issuing personal loans as new credit card rules have caused consumer confusion and a rash of new fees and penalties. With planning and discipline, a fixed payment instead of payments based on average daily balance involved with revolving debt can save a lot of money.

A personal loan is simple

Before credit cards became so prevalent and heavily marketed, people went out and got a personal loan when they needed cash. Marlys Harris at MoneyWatch said that old-fashioned unsecured personal loans could be making a comeback. The advantages are obvious: no confusing rules and various rates for balances, purchases, cash advances, rewards or balance transfers. A personal loan is simple: borrow a specific amount at a fixed interest rate for a certain number of years. Make all the payments on time until it’s paid off.

Banks want to make personal loans

Banks are stepping up their promotions for personal loans. American Banker lists such institutions as Wells Fargo, Discover Financial, Citi and CapitalOne. Wells Fargo will lend $3,000 to $100,000 for up to five years. Citi will lend from $300 to $7,500. Harris wrote that because the personal loans are risk-based, the banks keep their rates secret until a borrower submits an application. A Wells Fargo spokesperson told Harris that her rate for a $10,000 five-year personal loan would be comparable to the rate on her credit card.

The best way to get a personal loan

If a person faces unexpected expenses like car repair or medical bills or would like to consolidate debt at a lower interest rate, a fixed payment (rather than a payment based on average daily balance)  is the primary advantage of a personal loan over a credit card. To get a personal loan, Credit Loan suggests the bank the borrower already has a relationship with could offer the most favorable rate. But more people are finding that the best way to get started is online. A variety of information is available for free, including loan calculators to determine the total cost of a loan over its term. Plus, there are thousands of lenders competing for business on the Internet. Getting a personal loan online is simple, and there are usually no fees or costs other than the interest owed.

The job market is still in ruins. Image from Wikimedia Commons.

A lot of people lost their jobs during the worst parts of the recession. The idea was that if the government doled out a huge cash advance, the unemployment rate would decrease. Instead, the number of unemployed has only increased. In the month of August, there were 27 states that recorded an increase in unemployment. There were only 13 states that marked an improvement, and 10 that did not change. The recession is supposedly over, yet the economy as a whole does not seem to be improving fast enough.

Spike in unemployment rate

The unemployment rate has shot through the roof over the last month. According to CNN, there were 27 states that recorded an increase in the unemployment rate. Nevada still has the highest unemployment rate in the nation at 14.4 percent.  Michigan and California have unemployment rates of 13.1 and 12.4 percent, respectively. These have been the hardest-hit states throughout the recession. It appears emergency loans that went to these states to stimulate job growth, such as the auto bailout for Detroit, have not helped as much as was hoped.

Census accounted for losses

The end of the 2010 Census had a heavy hand in the increase in unemployment, according to USA Today. The Census employed about 114,000 people nationwide. That said, private employers are slowly starting to add jobs. About 67,000 private sector jobs were added, which has to be a relief for people looking for a pay day again. The end of the Census was anticipated to have a negative impact on the unemployment rate and jobless claims, as there isn’t enough instant cash floating around to hire all of them back into the private sector.

Slow but steady wins the race

Recent data was released indicating that the recession was supposedly over. However, it is difficult to reconcile that idea with the levels of unemployment and decreased spending and credit activity.

Sources

USA Today

CNN

Credit companies will still have you fork over the cash for a cash advance. Image from Wikimedia Commons.

After the CARD Act, or the so-called Credit Card Holder Bill of Rights, passed Congress, credit card companies started to think of new ways to increase revenue. Credit card companies now are figuring out ways to legally charge more for using the credit they extend. There are greater interest rates being assessed. Late payment penalties and charges for credit card cash advances are also increasing.

Credit card companies legally charging more

When regulative or restrictive legislation is passed, the industry being regulated or restricted will find new ways to improve business legally. Credit card companies are finding ways to not break the laws of the CARD Act, but still make the bottom line. According to the Wall Street Journal, card issuers disclose to customers that interest rates will increase because of late payments, but they do not have to disclose the amount of the increase. Credit card cash advances have gone up to 24 percent interest for bank cards and credit union cards are up to 16 percent.

Credit unions have lower fees

A recent study found that most fees or charges associated with credit cards were lower on credit union issued cards. The average bank issued card carries a late fee of $39 and the average credit union late fee is $25.  Card issuers also didn’t halt annual fees. Only 1 percent fewer cards had an annual fee from 2009. However, annual fees average $59 for bank issued cards and $25 on cards from credit unions. According to Newsweek, the average APR charged on credit cards overall has risen more than 1.5 percent in the last year. Free checking accounts might also become a thing of the past as well.

The mad dash for customer cash

Credit card companies are looking to bolster their bottom line, and with new laws on how they can charge you, are starting to raise their rates. It might soon be that more people are getting payday loans rather than use their cards, unless payday lenders are regulated out of business by the new Bureau of Consumer Financial Protection.

Further Reading

Wall Street Journal

Newsweek

Sam's Club, the retail warehouse wing of Wal-Mart, will start offering online loans to businesses. Image from Wikimedia Commons.

Sam’s Club, a division of Wal-Mart, will start offering online loans through Superior Financial Group LLC. The loans will be for entrepreneurs to start small businesses. Superior Financial Group is one of the leading Small Business Administration loan lenders, and it has partnered up with Sam’s Club on a trial basis to expand services that extend to small business owners that are members of the warehouse retail wing of the Wal-Mart empire.

Wal-Mart finally into banking

Wal-Mart has been looking for a way to get into the banking game. In 2007, Congress blocked non-banking entities, including retailers, from opening banks of their own. According to the Wall Street Journal, Sam’s Club has been losing revenue but has decided to give this online loan pilot program a chance. The loans available to small business owners that are members with Sam’s Club will range from $5,000 to $25,000, and will carry a term of 10 years at 7.5 percent interest.

Trying to attract greater membership

Sam’s Club has not been performing well as of late. The chain of warehouse retail stores, akin to Costco, recently had to close 10 stores. Small business owners are a significant portion of their customer base, and a business loan program would serve to attract or retain small businesses as customers. Wal-Mart already offers check cashing and VISA Check Cards and has MoneyGram locations in many stores that offer financial services such as money orders, payday loans and cash advances.

Will this pan out for Wal-Mart?

The Sam’s Club online loans will only be a pilot program. The loans in this case will largely be geared towards women, minorities and start up companies, according to Business Week. If Sam’s Club can make a success of this program, it will definitely make it hard for small businesses to pass up a membership.

Further Reading

Wall Street Journal

Business Week

The VIP loans Countrywide made in 2002 and 2003 are sparking ethics investigations. Image The Truth About/Flickr.

Several Washington D.C. lawmakers have been caught up in an ethics investigation over VIP cash loans given to their staffs. These “VIP” or “sweetheart” loans were all made by Countrywide, which was recently purchased by Bank of America. These VIP cash advances may end up causing ethical or legal problems for a few senators.

Countrywide’s VIP loans

In documents recently released by Bank of America, it was revealed that Countrywide wrote a huge number of “sweetheart” loans. These low interest rate, no credit check loan products appear to have been targeted to senators’ staffs. Republican Senator Issa, who filed an ethics complaint stemming from these loans, points out a “high concentration” of loans to D.C. staffers. The theory is that Countrywide wrote these fast cash loans in hopes of influencing Senator’s staff members and the Senators. The loans were made mostly in 2002 and 2003.

Ethics complaints over loans

Senator Issa filed the ethics complaints against several senators. Last year, Senator Dodd and Senator Conrad were both “scolded” by the Ethics Committee. These two senators were told to “be more careful to avoid the appearance of favoritism from Countrywide.” Despite the scolding, both senators were cleared of actual rules violations. Senator Robert Bennett has been named in the most recent ethics complaint. Twelve of the 30 named “VIP loans” went to members of his staff.

Naming the loan recipients

The Senate Committee on Oversight and Government Reform is doing the latest investigation on Countrywide VIP cheap loans. A subpoena has been issued to Bank of America to provide all loan documents where the VIP loan department issued loans to borrowers who listed “U.S. Senate” as their employer. Thus far, Bank of America has provided 37,000 documents related to Countrywide and their lending practices. If the loan recipients are actually named, it could be a serious issue in upcoming elections.

Senator Burnett responds

Republican Senator Burnett, who is not running for re-election, has responded in detail to the ethics complaint filed against him. In short, Senator Burnett said that he does not make it a point to find out where his staffers do their banking. Mortgages and unsecured loans, he said, are personal matters that he did not specifically ask his employees about.

The BP Facebook boycott and a fake BP Twitter page are PR problems, but BP's global profits are too huge for the movement to have an impact. Flickr photo.

A “boycott BP” movement driven by social media is gathering steam as the oil spill in the Gulf of Mexico 2010 continues unabated. Humorists are also using social media to affect BP’s reputation with bogus a BP Twitter account. And BP oil leak parody products like satirical T-shirts are selling like hotcakes. But even though BP is living a public relations nightmare, analysts say the giant oil company will see little effect on its profits

BP boycott  hits social media

BP boycott organizers say buying gas from other brands would hit the oil company where it hurts, short of the expense incurred dealing with the disaster. Public Citizen had collected more than 11,000 signatures Wednesday after launching a BP Boycott Pledge on its website. A Facebook boycott group called Boycott BP with more than 75,000 members implores consumers to take their cash advances elsewhere to buy gas. But convenience may trump the the act of signing a pledge online. The Facebook boycott has had little effect so far in real life. The Washington Post surveyed customers at BP gas stations across the Washington region. Many drivers said it was pointless to complicate the convenience of filling a gas tank with political or moral questions.

BP Twitter account goes rogue

The BP Facebook boycott may not be as effective in undermining BPs reputation as the bogus BP Twitter account @BPGlobalPR. The Los Angeles Times reports that the fake BP Twitter page had 42,000 followers as of Wednesday. BP’s real Twitter account, @BP_America, only has 5,700. The bogus BP Twitter account has raised more than $3,000 for the nonprofit Gulf Restoration Network through the sale of $25 BP T-shirts colored green and black to signify money and oil. Some fan favorites from the Twitter page include:

Catastrophe is a strong word, let’s all agree to call it a whoopsie daisy.
The good news: Mermaids are real. The bad news: They are now extinct.
I’m sorry, are people mad at us for drilling in the ocean?!? Maybe God shouldn’t have put oil there in the first place. DUH.

BP gas station owners take the hit

The BP boycott and BP T-shirts may affect small business BP gas station owners more than the global petroleum behemoth. CNNMoney.com reports that BP does not own the 11,500 gas stations that carry its logo in the United States. BP gas stations are owned by independent franchisees. Those BP gas station owners pumped an average of more than 42-million gallons of gas per day last year. An oil company executive told CNN that BP, one of the largest oil trading companies in the global market, can sell petroleum products wherever it needs to. If American consumers don’t buy BP gas, the insatiable demand for oil worldwide means someone else will. BP, which generated sales last year of about $240 billion, told CNN it has seen no effect from any boycott efforts.

The controversial cross was stolen out of the Mojave Desert. Image from Wikimedia Commons

Just weeks after a decision by the Supreme Court to keep a large cross erected in a state park in California, there’s been a strange turn of events. It appears the Mojave Cross was stolen.  It isn’t known who did the deed or why.  Speculation is likely to run rampant, but the cross put up as a World War I veterans memorial has been pilfered from its hill.  The hefty cash advances given to attorneys to keep the cross erect seem to have been in vain.

Mojave Cross stolen in the night

Though some have disagreed with the existence of the Mojave Cross, to see the Mojave Cross stolen is at minimum tantamount to sacrilege. The Mojave Cross in question was put up as a veterans memorial by the Veterans of Foreign Wars to commemorate the fallen of World War I.  The Supreme Court had ruled the Mojave Cross constitutional in spite of objections that it didn’t properly honor veterans that were not of the Christian faith who have served in the Armed Forces.

Someone had to go to great lengths

The Mojave Cross is 7 feet tall, and not exactly built out of balsa wood. According to CNN, the most recent incarnation (it has been rebuilt several times) is constructed of 3-inch metal pipe and reinforced with concrete, according to Henry Sandoz, the caretaker of the monument. It will likely be rebuilt. The rugged construction and remote location would suggest that it was not just a simple theft for scrap metal, and it may have been done out of spite.

What is being done?

The Veterans of Foreign Wars intends to put up an exact replica of the monument.  The organization also is offering a reward for information leading to the recovery of the Mojave Cross or to the arrest and/or conviction of the thieves.

Advantages of a No Fax Cash Advance

When you need cash in a hurry, such as for your mortgage, not having to deal with a fax machine or loan office can be a real time saver. For example, say you applied at a traditional loan office for a cash advance. They must then fax your application to the actual lender. Then the lender must take the time to make a decision. After the decision is made, they will let the loan office know. And then they have to track you down to let you know the decision. Then you must drive back to the loan office to pick up your cash advance. Sounds complicated, doesn’t it?

Of course, if you were to apply for a no fax cash advance online, the information could be quickly forwarded to the lender. They could give the answer immediately and you could have your no fax cash advance in your account within a few hours. You could catch up your mortgage payments, all within a matter of 24 hours.

No Fax Cash Advances are quick and easy

As you can see, applying for, and getting, a no fax cash advance is quick and easy. If you meet all the requirements, then you should be able to get your cash pretty quickly. Use this cash to save your house from going into foreclosure. To prevent this from happening again, be sure to pay off your no fax cash advance as soon as you get your next paycheck. After all, you want to keep this option open for the future in case you need it again!

Start your no fax cash advance loan application HERE!

I propose that fewer Tea Party tax protests would be so angry if we all had a few more. (Image from Wikimedia commons)

My fellow Americans, it is tax time, and I note some of you are into this Tea Party thing, which has many people incensed against government and taxation.  Well, since Tax Day is passing and many of us are mailing painful checks to the IRS, I figured I’d let you all in on something I discovered about why so many people are angry about taxes.  You’d never guess this one, and I’m letting everyone in on it for free. You won’t need payday loans to rectify it either.

An odd correlation

Many Americans are stressed over taxes.  Some of us begin to wonder – do U.S. citizens give that much more in cash advances to our government? Actually, no – Americans pay some of the most reasonable taxes in the developed world.  Here are four tax categories and what Americans pay:

• Corporate Tax: 15 to 39% Federal, 0 to 12% State
• Income Tax: 0 to 35% Federal, 0 to 10.3% State
• Value Added/Goods & Services/Sales Tax: 0 to 10.25% State and/or local
• Payroll Tax: Up to 15.3% Federal

Consider the UK has income taxes of 40 to 50 percent, and a 23.8 percent payroll tax.  Denmark imposes an income tax of up to 59 percent of income. Sweden starts at almost 29 percent, and can go as high as almost 60 percent of income. It seems as though there aren’t the kind of tax protests there as here.

Why?

Well, for two reasons. One is that they may be OK with government providing services.  However, another statistic is far more telling:

They drink more and better beer than we do.

Oh yes, I went there. Average beer consumption per capita by Americans is 13th.  Almost every country in the ranking by beer consumption above us has higher taxes than us, and the average U.S. citizen puts away almost 82 L per year in beer. For instance:

• Spain: Almost 2 liters more per year, and up to 7% more in income tax
• Luxembourg: They pay almost 4% more, drink 3 L more
• Finland: Drink over 3L more, pay up to 60% in federal and local tax
• Denmark: Pays up to 14% more, drink 8 L more
• Belgium: Income tax up to 50%, and they put 11 L more away
• The UK: 50% income tax, they drink 17 L more per year
• Germany: Up to 45% income tax, and a liver killing 115 L per year
• Ireland: Income tax of up to 41% and they consume a pulverizing 131 L of beer every year.

Of the top 13 beer drinking nations, only Slovakia and the Czech Republic pay less income tax and drink more beer than us.

So what’s the point?

The point is that alcohol is a depressant.  You calm down.  Tea Party protests, do not seem calm.  (Granted, they aren’t violent – but very agitated.) Thus – I present the following argument:

• First – that people who indulge in more beer, responsibly, are calmer
• Second – that the majority of the countries that drink more beer than us pay more in taxes (10/12, in fact)
• Third – that they protest these taxes less
• Fourth – if drinking more beer leads to a more relaxed frame of mind, U.S. tax protests would happen less or with less vitriol if we as a nation started drinking more beer.

Remember, always indulge responsibly, legally and with a designated driver.

Ron Paul's official portrait. (Photo from Wikimedia Commons)

One of the most intriguing candidates that the Republican Party has fielded in recent years is the Representative from Texas, Ron Paul. Recent polls have indicated that he is virtually even with Barack Obama for a 2012 Presidential run, according to USA Today.  Paul is popular with a great cross section of Independents, Republicans and even an occasional Democrat, espousing libertarian views that often clash with mainline Republicans.  He also gets more cash advances from voters than many other candidates.

Just who IS Ron Paul?

Ron Paul, or rather Dr. Ron Paul (former USAF Flight Surgeon and OB/GYN), was elected the US House of Representatives for the 22nd Congressional District of Texas first in 1976 to 1977, from a special election. He lost the seat, then re-gained it from 1979 to 1985.  After resuming his medical career, he was again elected to office from 1997 to the present continually in the 14th Congressional District.  After he left office in 1985, he unsuccessfully ran for President on the Libertarian Party ticket.

What’s a Libertarian?

Libertarians are a special breed, being the most conservative in ways and the most liberal in others.  First is that government and taxation should be kept to a minimum and that an individual’s civil liberties are of paramount importance. They also believe strongly in the freedom of choice and that the use of force is never justified except in self defense.  They also oppose governmental regulations on anything from medicine to no fax payday loans.

Rep. Paul has been a gadfly of both Republicans (though he is one) and Democrats, criticizing the Iraq War among other things.  He famously sparred with McCain and Giuliani throughout the 2008 debates, angering some, and plays a big part in many CSPAN hearings with the Federal Reserve. Many a YouTube clip features Paul grilling Ben Bernanke in Congressional hearings.

Tea Party Candidate like none other

Ron Paul made waves recently with a speech at the Southern Republican Leadership Conference. He was bitingly critical of both parties and received equal cheers and boos.  Selections of the quotes are on Zealfortruth.org,  and full transcripts available elsewhere, but one of the most interesting snippets was his response to the “Obama socialist” rhetoric that has been flying around.

“Barack Obama is not a socialist … (he’s) a corporatist. Unfortunately, we have corporatists in the Republican Party…where (corporations) come in and run everything. We see that in the financial institutions, we see it in the military industrial complex, and now we see it in the medical industrial complex.”

Getting Right Popular

He came in second to Mitt Romney in the SRLC straw poll, and at the CPAC (Conservative Political Action Conference) Straw Poll took the number one spot for presidential candidate.  Tea Party concerns such as taxes, government intervention and Federal Reserve shenanigans are things he’s been railing against for years. Some have tipped Rep. Paul as the successor to Barry Goldwater.  It will be interesting to see if he’ll enter into the 2012 campaign.  Many hope that if he does, he’ll be successful.

The Kansas Jayhawks were actually being predicted to win it all as the overall number one seed while Syracuse was also being praised in many brackets nationwide. The universities of Northern Iowa and Butler, however, had other ideas. Universities like Northern Iowa, Butler and St. Mary’s is making March Madness exciting enough to go out and find some quick cash for this year’s Final Four Frenzy at Lucas Oil Stadium in Indianapolis, Indiana.

Getting to Lucas Oil Stadium in Indianapolis, Indiana

Would you like to visit the stadium where Peyton Manning earns his money? Better yet, how would you like to get your fair share of this year’s March Madness? You can be a part of the excitement, intrigue and history by visiting this venue for Final Four Frenzy 2010.

Final Four tickets are being sold at amazing rates, and cities like Houston, Texas, which is hosting the Sweet 16 and Elite 8 have already reported record ticket sales for the Baylor, St. Mary’s game today (March 26, 2010). Nevertheless, the Sweet 16 and Elite 8 pales in comparison to the excitement associated with the Final Four. If you’re in need of some quick cash to participate in this year’s Final Four Frenzy, then visit PersonalMoneyStore.com and take advantage of the amazing opportunities for borrowing money.

How to be a part of March Madness

Borrowing money has never been easier nowadays and with the Final Four Frenzy only a week away, there couldn’t be a better reason to take out a personal cash loan and get the quick cash you need to be a part of March Madness and One Shining Moment. Just don’t forget to budget your finances well, as these types of cash advances are not designed for irresponsible use of money.

Applying for a Convenient Loan

Loan companies have assisted the consumers by simplifying their application process, making it easier to apply and qualify for the loan. Consumers who are over the age of 18, have a job and a current active bank account can apply and qualify for the fast loans. The lender will examine the application, make an approval decision and determine how much money the applicant is eligible to borrow. Funds can be made available within 48 hours of the loan approval. It is being estimated that the US citizens will not see an improvement in their economy for at least a year, and the straining economy has caused a need for government bailout which has limited the normal lenders in the US.

Struggling US Banks

In 2008, the US banks began showing signs of struggle within the country’s economy. Although in 2009 the US banks have begun to show profits gaining, analysts advise that the banks increasing profits do not prove that the US economy is completely out of its recession. The banks have improved since the bailout, however; that does not mean that they are not still suffering from smaller losses, which have been experienced throughout the months. Despite their improvements, the US banks are still not operating at the levels they were in previous years.

Analysts warn that although the banks are improving with revenue increasing more than expenses, the US banks still have issues from the past that must be dealt with. The lending practices of many banks are one reason the banks fell into hard times. Lenders were approving loans for almost anyone who applied without checking the applicants properly. Unwise lending was becoming more and more popular and is believed to be a large contributor to the recession experienced in the US. Banks hope that the bailout they received, in addition to interest rates, will allow them to completely turnaround their struggling situation, giving them the opportunity to start fresh.

How Fast Loan Lenders Benefit?

The US banks have shortened lists of qualified borrowers, which have led to an increase in business for cash advance loan companies. Due to the structure of their loans, this type of lender still remains able to extend money. Individuals needing loans that were turned down by conventional banks are finding approval from these loan companies. A simple application process, willingness to lend, and the structure of their loans is what allow this type of lender to extend monies to those individuals who find themselves in need of a loan.

Foreclosure Still on the Rise

Decreased business activity and an increase in unemployment continue to push borrowers into default. Many banks have put a stop on foreclosures, pending the results of the government bailout and how it would affect the market. Once banks begin sorting out the questionable loan customers, a decrease in their profits may once again begin to rise. It is difficult to estimate the number of defaulted homes that may occur in the future. With employment being difficult to find in many regions of the US, foreclosure will still occur as consumers make difficult choices pertaining to their financial state. Conventional lenders are being careful about who they choose to lend to. Many Americans have turned to and will continue to turn to the quick loan lenders, rather than the banks, to apply for loans. These loan companies are in a better position to extend funds, which helps the consumers.

Cash advance loan companies are becoming more popular as the US banks and economy continue to struggle. Fast and simple, this kind of loan looks good to consumers. The application process for these quick loans is simple and convenient, unlike the process taken by traditional financial institutions. The structure of these loans makes it easier for these lenders to extend money to those in need. US banks are making it more difficult for Americans to borrow money, and Americans find themselves turning to this type of Loan Company to supplement their income when times are tough.

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Consumers are using cash advance loans because their 401(k) accounts are being handled by their employers. A new study is showing that there is a new trend in the world of retirement accounts. Barclays PLC’s Barclays Global Investors are now telling employers to automatically build savings for their workers by putting 8% of their pay into a retirement account. T. Rowe Price Group has been moving workers retirement funds into target-date retirement funds, even if the worker previously opted out. Prudential Financial Inc. announced plans to persuade companies to prohibit their workers from borrowing from their individual retirement savings accounts.

Changes like this are making it more difficult for workers to take out money if they need it. A lot of consumers are saving for their futures, but also think of their 401(k) as an “emergency fund” that is there if they need it. There are penalties, but it is still money available. Many of the new laws regarding retirement savings are changing that.

Employers are getting more aggressive with IRAs

The move for employers to become stricter with retirement money is a new wave in the industry. Many companies already restrict their employees’ retirement funds and automatically enroll workers into a 401(k) plan. The worker can opt out of course, but traditionally, they don’t. This new method of employer control is not unlike a defined-benefit pension plan. There is one key difference, however. With the forced 401(k) rules, the individual employee has to bear the brunt of any investment risk.

Fund firms and retirement plan providers are looking at savings from a more controlled perspective. Studies have shown that people historically are not good with their retirement money. Some employees invest far too little, while others invest too aggressively. Straight across the board, employees don’t save enough. This has the ability to bring about a crisis in years to come. Now that Social Security is projected to be tapped out by 2016, consumers need to be ready to take charge of their own retirement funding. Without the necessary savings, it will be impossible for many hard-working people to survive. Without savings, consumers could be left to rely on cash advance loans, short term loans, or families for making it through financial difficulties.

The risk for workers dealing with aggressive employers

There is risk for employees who have to deal with aggressive companies managing their retirement funding. When employers are tasked with making decisions regarding savings, they are left to move these funds towards target-date funds. Many target-date funds were crushed last year due to the recession and that alone brings up many concerns by financial experts as to their reliability when times are tough. Lawrence Kotlikoff, a Boston University economics professor, said, “Automatically putting a big chunk of workers’ pay in stock-heavy, relatively high-fee funds is a form of financial malpractice.” The move is causing employers to not only put larger chunks of worker’s paychecks into their 401(k) account, but also they are increasing the contributions each year.

Retirement no longer in consumers’ hands

So this leaves the future of workers up in the air. Sure they need to save money for retirement, but are employers the best ones to handle the saving plan? Though historically people have not saved nearly as much as they should, does that automatically mean employers should police peoples’ accounts? Or should people be left to manage their own money? These and many other questions are being explored by the Senate Committee on Aging. The organization plans on examining risks, fees and potential conflicts of interest in retirement funds. Until a clear cut solution is found, employees may need to rely on other forms of savings, such as credit cards, cash advance loans and family aid to make it through their retirement years.

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Never too old to ride a bike; never too young to plan for retirement

There was a time when planning for retirement was relatively straight-forward. A person simply worked at a job until age 65 and then retired to live off pension plans and Social Security benefits. This was the reward for years of hard work with one employer and paying into a dependable government-sponsored retirement fund.

Life has changed

Much has changed in terms of retirement planning and benefits. Years ago, life expectancy for most seniors was much lower than it is today. Today, people are living longer, which is good news. On the other hand, retiring at age 65 isn’t always financially feasible with people living to age 90 or longer. As life expectancies increase, it becomes more difficult to acquire adequate funds for a comfortable retirement.

Jobs have changed

Today, most people change jobs or careers several times during their working years. In many of these jobs, pension benefits do not exist. To compound the problem, Social Security benefits have not kept up with cost of living increases, and most people cannot live comfortably on them today.

Health care has changed

The problem becomes overwhelming when you add health care costs to the mix. Health care costs, especially for older people, tend to be uncertain even as they continue to rise. Because of this, the future support of many elderly individuals is in question.

Have you started to think about your retirement?

With all these retirement issues facing every person in the United States, it would seem reasonable that we would find alternatives to existing retirement plans and begin saving money for our retirement years. Planning ahead makes sense, but a lot of people are at a loss when it comes to taking action.

Plan for the worst, hope for the best

Experts agree that everyone should begin their retirement planning by assuming the absolute worst-case scenario. We should assume that Social Security benefits will not be available or, at least that they will not be sufficient to support us. Also, we should assume that medical care will create a significant financial burden. No one hopes that these worst-case scenarios will materialize, but we should plan as though they will so that we are prepared. In the unlikely case that they assumptions don’t materialize, we’ll have more than enough money to live on, and what could be wrong with having a little extra to do the things you’d like to do?

Plan for a comfortable retirement

Here are a few suggestions for insuring that your retirement is a comfortable one:

Start an emergency fund. Save as much as possible or, at the very least, have six months of living expenses in a savings account earmarked for emergencies. If you’re like a lot of people today, your living expenses may exceed your wages or salary and you may have to rely on payday loans or credit cards to get through a month. When you figure out how much you need to save and set aside, consider your actual living expenses and not just your income.
When available, participate in your employer’s retirement plan. If you don’t have a retirement plan at work, invest in an Individual Retirement Account, (IRA). Sometimes employers will match a portion of the contributions you make.
Set financial goals and stick to them. Many people dream of sending their children to college, retiring early, and traveling the world. The reality is, however, that these things will not happen without proper planning. Taking the time to sit down and seriously assess the financial backing that will be needed to support these goals, and then creating a plan to invest and grow money over time is the only way to make dreams like these come true.

Start planning now!

Almost everyone who lives long enough will eventually have to retire from working. Some people look forward to retirement, while others dread it, fearing that they won’t be able to survive. The sooner you start to think about and prepare for retirement, the better off you will be. Retirement planning is not just for the elderly. The more time you have to plan and the more time you have to save, the more you’ll look forward to the day you retire, so the best time to start planning is right now.