Investor – Kat Masters http://katmasters.com/ Sun, 20 Nov 2022 12:00:24 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://katmasters.com/wp-content/uploads/2021/06/icon-2021-06-25T173039.237-150x150.png Investor – Kat Masters http://katmasters.com/ 32 32 Crypto Should Be Regulated Under Existing Law, Says Former FDIC Chief https://katmasters.com/crypto-should-be-regulated-under-existing-law-says-former-fdic-chief/ Sun, 20 Nov 2022 12:00:24 +0000 https://katmasters.com/crypto-should-be-regulated-under-existing-law-says-former-fdic-chief/ The collapse of cryptocurrency exchange FTX shows U.S. regulators need to combine forces and use existing powers to protect investors rather than wait for new laws, urged Sheila Bair, who helped lead the regulatory response to the 2008 financial crisis. “Regulators need to swallow hard and get an agreement, then start implementing, using the powers […]]]>

The collapse of cryptocurrency exchange FTX shows U.S. regulators need to combine forces and use existing powers to protect investors rather than wait for new laws, urged Sheila Bair, who helped lead the regulatory response to the 2008 financial crisis.

“Regulators need to swallow hard and get an agreement, then start implementing, using the powers they currently have,” Bayerformer head of the Federal Deposit Insurance Corporation, told the Financial Times.

“Set a framework, announce it publicly, implement it through rule changes and policy announcements. But keep going because more and more people are getting hurt.

Federal regulation of cryptocurrency-related products and commerce has been blocked by claims that it falls within the jurisdictions of the Securities and Exchange Commission, Commodity Futures Trading Commission, and banking regulators. When senators this week asked US regulators who was overseeing FTX, which was once worth $32 billion, there was an awkward pause.

There is also a heated debate over whether agencies should produce crypto-focused regulation, with some lawmakers and industry figures calling for more guidance while market regulators say existing laws are clear enough.

Most Americans attracted to bitcoin and other digital tokens traded through entities headquartered outside the United States, including FTX. This company filed for bankruptcy last week, throwing the digital asset market into crisis. The group’s new chief executive said in a court filing that FTX displayed “a complete failure of corporate controlsand was subject to “flawed overseas regulatory oversight.”

“It doesn’t surprise me and it saddens me,” Bair said. “It was a mistake when the President’s task force [on digital assets] says we need legislation and we throw a hot potato back to Congress.

Some opponents of cryptocurrency regulation worry that government oversight is giving digital assets undeserved credibility. Bair said she strongly disagrees, based on her experience with consumer loans. “I really don’t like payday loans, but . . . I don’t think it validates payday loans by regulating them. They try to prevent people from getting hurt.

Bair said she does not expect the crypto price crash to cause broader financial instability. “To date, most cryptos have never really had real-world applications, so the economy doesn’t rely on it the way we rely on our regulated financial system.”

But she worried that FTX’s problems would spill over and affect fintechs trying to exploit the same type of distributed ledger technology. She is an external board member of Paxos, which offers cryptocurrency brokerage and settlement services and is regulated by New York State.

“I don’t want to throw the baby out with the bathwater. Hopefully this will actually reallocate capital from speculation to companies that are really trying to use this technology in a meaningful way for something of value.

“A regulatory imprimatur for them would absolutely help with that. Stop those other guys.

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Studies show that gains against child hunger were lost after the Child Tax Credit ended https://katmasters.com/studies-show-that-gains-against-child-hunger-were-lost-after-the-child-tax-credit-ended/ Wed, 16 Nov 2022 17:52:49 +0000 https://katmasters.com/studies-show-that-gains-against-child-hunger-were-lost-after-the-child-tax-credit-ended/ × REISSUE CONDITIONS You may republish this article online or in print under our Creative Commons license. You may not edit or shorten the text, you must attribute the article to The Pulse, and you must include the author’s name in your repost. If you have any questions, please email [email protected] Licence Creative Commons attribution […]]]>

REISSUE CONDITIONS

You may republish this article online or in print under our Creative Commons license. You may not edit or shorten the text, you must attribute the article to The Pulse, and you must include the author’s name in your repost.

If you have any questions, please email [email protected]

Licence

Creative Commons attribution

Studies show that gains against child hunger were lost after the Child Tax Credit ended

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Is a payday advance from a bank better than a personal loan? https://katmasters.com/is-a-payday-advance-from-a-bank-better-than-a-personal-loan/ Sat, 12 Nov 2022 12:32:34 +0000 https://katmasters.com/is-a-payday-advance-from-a-bank-better-than-a-personal-loan/ Image source: Getty Images We’ve all come across an unexpected expense from time to time. Key points 60% of Americans couldn’t cover a $400 emergency expense without going into debt. If you need cash fast and your bank offers payday advances, it might be worth looking into. A personal loan has other advantages, however, such […]]]>

Image source: Getty Images

We’ve all come across an unexpected expense from time to time.


Key points

  • 60% of Americans couldn’t cover a $400 emergency expense without going into debt.
  • If you need cash fast and your bank offers payday advances, it might be worth looking into.
  • A personal loan has other advantages, however, such as a higher borrowing limit and a lower interest rate.

Many of us have been there. You had a car accident, and now you have to pay the mechanic to fix it. This unexpected expense will cost you a few hundred dollars, and like 60% of Americans, you are not able to cover it with your savings. Moreover, you only have money left for the bare necessities in your current account, and your next payday is several days away. What should you do?

You have a few options in this situation. Read on to learn more about bank payday advances versus personal loans, and how to decide which is right for you.

What is a salary advance?

A payday advance loan from a bank or box is called a small loan. These are loans of an amount generally between $100 and $1,000, granted by a bank to account holders. The intention is to give consumers an alternative to predatory payday loans (see below) when they are in a financial bind. If your bank offers them, you’ll get the money you need quickly and pay it back from your next paycheck via direct deposit, or over a period of weeks or months. You will have to pay a fee (either a fixed dollar amount or a small percentage of what you borrow) and interest for the service.

You may soon hear more about payday advances; a Bloomberg Law report in early October 2022 noted that federal regulators want banks to be able to offer them, but banks need more guidance from regulatory agencies moving forward. Personal loans, on the other hand, are already reliably available for your emergency borrowing needs.

What is a personal loan?

A Personal loan is a fairly easy way to borrow a lump sum of money. They usually come with lower interest rates than many other quick cash solutions, like credit cards or payday loans (and certainly lower than payday loans). However, if your credit is not in top shape, you may not be eligible for the best personal loan rates available.

Personal loans are generally in the amount of $1,000 to $100,000, and can often be funded fairly quickly after your application is approved. In some cases you can get the money the same day or the next day. Is there another way to borrow money quickly? Yes, but you probably want to stay away.

Try to avoid payday loans

Although it may seem counterintuitive (after all, there’s “payday” in the name), it’s a good idea to avoid payday loans. And depending on where you live, they may be illegal in your area; they have been banned in 13 states and the District of Columbia. Payday loans are small, short-term loans of $500 or less, usually with a very high interest rate.

As of 2022, typical payday loan rates range from 28% to 1,950%. These loans often trick consumers in a cycle of debt from which they cannot easily escape. Can’t repay your loan on your next payday? That’s fine, the lender will turn it into a new payday loan for you! How nice of them. Your best choice is probably a payday loan or a personal loan.

How do you choose?

There are a few things to consider when choosing between a payday advance and a personal loan.

How much money do you need?

A payday advance loan, if you can get one from your bank or credit union, is probably best for borrowing smaller amounts. If your auto repair bill is $350, but the smallest personal loan amount you can take out is $1,000, that’s not ideal. If your surprise expense is larger, you’ll likely get a better interest rate with a personal loan (plus payday advances from your bank may be capped at $500).

How fast do you need it?

If you can wait a few days and have good credit, you may be better off with a personal loan – again, because of interest rates. That said, if your bank offers payday advance loans, they might approve you fairly quickly if you’re an existing customer in good standing. It has already registered you and can access your finances in the form of your bank account(s). Plus, your bank can easily send the money you borrow directly to your account.

How long do you need to pay it back?

This is where a personal loan probably has the advantage. You will have more time to repay a personal loan (months to years) than a payday loan (weeks to months). But again, a lot depends on the amount of money you need to borrow.

Payday advance loans and personal loans have their place, and if you ever get into trouble and need to borrow a relatively small amount of money, both are worth considering. However, it is definitely in your best interest to avoid payday loans.

The Ascent’s Best Personal Loans for 2022

Our team of independent experts have pored over the fine print to find the select personal loans that offer competitive rates and low fees. Start by reviewing The Ascent’s best personal loans for 2022.

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Younger borrowers are likely to use payday loans and are unaware of “more affordable” credit unions https://katmasters.com/younger-borrowers-are-likely-to-use-payday-loans-and-are-unaware-of-more-affordable-credit-unions/ Thu, 10 Nov 2022 07:00:49 +0000 https://katmasters.com/younger-borrowers-are-likely-to-use-payday-loans-and-are-unaware-of-more-affordable-credit-unions/ According to a study by the government-backed Money and Pensions Service, young people are twice as likely to turn to high-interest payday lenders than not-for-profit community lenders. Friends and family were the main source of loans for the 25-34 age group, with 26% saying they would turn to ‘close contacts’. Meanwhile, 19% said they would […]]]>

According to a study by the government-backed Money and Pensions Service, young people are twice as likely to turn to high-interest payday lenders than not-for-profit community lenders.

Friends and family were the main source of loans for the 25-34 age group, with 26% saying they would turn to ‘close contacts’.

Meanwhile, 19% said they would consider payday lenders or other high-cost short-term credit if needed.

Only 5% of respondents said they would consider borrowing from nonprofit lenders such as credit unions.

There are 7.7 million financially vulnerable adults in the UK and almost half are aged between 25 and 34

Additionally, the non-profit financial organization Fair4All estimates that there are 7.7 million people aged 18-34 who are financially vulnerable, accounting for nearly half of the 17.6 million estimated adults living in these conditions.

Lauren Peel of Fair4All Finance told This Money: “We’re seeing people who already feel like they’ve cut back and are still overdrawn every month.”

“But they have goals and are ambitious about where they want to live and what careers they want to have.

“A lot of them are tenants and it’s not always a stable market. People worry year after year about the increase in their rent.

What are credit unions and community lenders?

Credit unions are financial cooperatives that provide savings, loans and a range of other services to their members. To join, credit unions generally require members to be part of a common bond, such as living in a designated area or working for a particular employer.

However, you may not always need to be a current union member to use its services.

These organizations are often able to lend money to customers on more favorable terms than other street lenders and have programs in place to help more vulnerable borrowers who may have difficulty accessing credit elsewhere.

Victoria Barry, 36, got tricked by <a class=payday lenders in her early 20s, but with the help of a credit union she was able to pay off her debts and is now a homeowner.” class=”blkBorder img-share” style=”max-width:100%” />

Victoria Barry, 36, got tricked by payday lenders in her early 20s, but with the help of a credit union she was able to pay off her debts and is now a homeowner.

Victoria Barry was caught in a vicious cycle of using high-cost payday loans in her early twenties.

Speaking to This is Money, Victoria, now 36, from Manchester, said she initially borrowed just £20 from a payday lender after a friend recommended they fund a night out at the end of the month. However, caught up in the high interest charges, Victoria continued to supplement her salary with loans at the end of the month.

She reached the point where she was paying off almost all of her salary to payday lenders on a monthly basis and then had to get another loan to live on. The tipping point came, she says, when her borrowing exceeded her income.

“The next payment was going to be money I didn’t have in my account,” she recalls. “I only had a salary of £10,500 and the month before I had borrowed £700. With the £150 in interest, I had no way of giving them that money.

At the time, Victoria was working for Co-op Insurance and noticed advertisements for the Co-op Credit Union, which is open to members of various co-operative organizations, on her workplace intranet.

“It was quite shameful, my family is not in debt, so I felt like I had let people down and didn’t want to turn to them. I saw it [credit union adverts] on the intranet and thought I’d give it a try.

It was pretty shameful, my family is not in debt, so I felt like I let people down and didn’t want to turn to them

She says she was worried union staff would blame her for mishandling her money, but when she met an adviser in person he was reassuring and helpful.

They provided him with not only an affordable repayment plan, but also financial health tools, such as budgeting skills, to be able to manage his money.

“Nobody tells you how you budget and it’s very simple, that’s where the money comes in and that’s what you can spend,” says Victoria who now has her own home in Mossley, Greater Manchester .

“It was about someone listening to you and not judging you, which was the most important thing for me at the time.

“Looking back on that time it felt like there was no hope so I’m happy to share my story because if a person like me hears there’s someone out there who can help you who is not a loan shark or pay day lender so it’s worth it.

What else can you do if you need credit?

The first thing Peel suggests is to check if you are entitled to benefits that you are not already claiming.

There are online tools to determine if you can access other sources of income. It is estimated that around £15 billion in benefits go unclaimed each year.

When there’s a need for credit, don’t be ashamed, she says. Just be sure to do your research and approach financing providers who can help you find a lower cost option.

High-cost payday lenders are often at the top of search engine results, so take the time to look a little deeper to determine what’s available and affordable.

Victoria Barry echoes the message that you shouldn’t be ashamed if you’re in financial trouble and seek help.

She suggests talking to a credit union, but even if they can’t help you, they can direct you to other sources of help.

“Asking for help is the first step,” she says.

According to a study by Bluestone Mortgages, one in six adults (16%) say they are too embarrassed to ask for help when they are in financial difficulty.

However, a bigger barrier to getting advice is that almost a third (31%) don’t think they have a right to help, while more than a fifth (22%) say they don’t know where to start looking for help. .

To raise awareness, credit unions and other community lenders are encouraging young people in their 20s and 30s to review their credit choices and consider the options available to them through a range of local and national community lenders that may suit their financial circumstances.

They can be found at Find Your Credit Union – credit unions near you and Finding Finance – Responsible finance providers offering simple, smaller affordable loans.

Some links in this article may be affiliate links. If you click on it, we may earn a small commission. This helps us fund This Is Money and keep it free to use. We do not write articles to promote products. We do not allow any business relationship to affect our editorial independence.

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Pennsylvania Instant Cash Loans Online | Emergency loan with StarLoans https://katmasters.com/pennsylvania-instant-cash-loans-online-emergency-loan-with-starloans/ Thu, 10 Nov 2022 00:40:11 +0000 https://katmasters.com/pennsylvania-instant-cash-loans-online-emergency-loan-with-starloans/ Philadelphia, PA –If you find yourself in a situation where you urgently need funds, and your credit history or time does not allow you to go to a bank, the best option is to contact a non-banking company. The most popular non-bank offers are payday loans and title loans. In order to understand which of […]]]>

Philadelphia, PA –If you find yourself in a situation where you urgently need funds, and your credit history or time does not allow you to go to a bank, the best option is to contact a non-banking company. The most popular non-bank offers are payday loans and title loans. In order to understand which of the proposals suits you best, read the article below.




Short term payday loans are instant internet loans that can be obtained even in 15 minutes! With online payday loans in Pennsylvania, you can get anywhere from $100 to $1,000 with a repayment period of up to 31 days. Thanks to modern lending platforms, lenders can offer customers quick and convenient access to an express loan via the Internet – in extremely attractive amounts and flexible repayment dates.








Anyone who owns a car in Pennsylvania can get a loan even faster. The amounts that can be obtained through title loans are higher, since the amount of the loan depends solely on the value of your car. To get a title loan, all you have to do is take money against his car. More and more such offers are available on lending websites that operate in Pennsylvania. Only private car owners can afford this type of loan.

starloans





How do these loans work?

A car loan is a type of transaction that is guaranteed by the car of the person who decides to contract it. With this type of option, you can borrow a much higher amount from the lender. And all thanks to its protection in the shape of a car.

To receive both pennsylvania cash advance and securities loans, you must follow the same steps required when applying for other types of loans, i.e.:







  1. First, you need to choose a lending company whose services you want to use; it does not have to be a fixed installation; now more and more sites offer this type of loan.
  2. In the next step, you will need to fill in the form required by the lender; it must include data such as: name and surname, identity card number, residence address, e-mail address, telephone number, employment information and data on your car in the case of home loans.
  3. Then you have to wait for a response from the lender.

Formalities that the lender will expect from us

If our loan application is approved, we will then have to complete all the formalities required by it.

At first, the loan company will send us a loan agreement, the transfer of ownership of the car and a power of attorney, through which you can enter the lender as a co-owner of our car.

You should know that on the basis of a car transfer agreement, the loan company obtains 51% of its ownership. Only when we repay the loan in full does it transfer full ownership of the vehicle to us. From the borrower’s point of view, the most important thing is that he can use the car for the entire repayment period (if he is only a co-owner of the car).

In the case of a title loan, once all required documents have been signed by both parties, the borrower must:

  • Take the power of attorney and the property contract and contact your communications department.
  • He must file an application there with the loan company with which he signed the loan contract to be registered on the registration certificate as co-owner of his car.
  • The borrower has 7 days to carry out this type of activity; they are counted from the moment of the conclusion of the agreement with the lender.
  • The next step is to send the borrower a scan or readable copy of the new registration certificate.
  • Additionally, many lenders also require that you send them several photos of the car (including its engine – there should be a legible VIN number on it; a photo of the windows is also recommended in this case – there should be a registration sticker on it).

What are the documents required when concluding this type of loan agreement?

To benefit from a car loan, you must bring the vehicle registration certificate and your identity card. The age of our car will be extremely important to the lender. For most loan companies, it can’t be more than 8-12 years old. It should also be remembered that our registration certificate must indicate that we are the sole owners of the car for which we wish to take out a loan.

If you apply for a fast personal loan, all you need to do is provide your identity card and proof of income.

Our car should then have:

  • Civil liability insurance policy in force,
  • Assignment of the policy to the lender,
  • Vehicle card (if, of course, it was issued earlier).
  • From the borrower’s point of view, the most important thing in this case is that the lending company will not verify the source or amount of our income. It is possible because it is secured by our car.

Are these loans profitable?

There are no perfect loans, as each requires timely payment of all installments. Of course, a loan is unequal. That’s why you should carefully compare the offers of different loan companies. The safest option is to choose an offer from a company that has been operating in the market for many years like money online at starloans.net. By contacting it, you can be sure that it is a trustworthy institution. After all, hundreds or even thousands of people before you have trusted this company.

The advantages of both types of loans:

  • You do not need to present certificates which would document how to receive and how much income we make
  • You do not have to wait a long time for the decision of the loan company (of course, if we immediately provide a set of documents required by it)
  • You will be able to take out a new loan from the same lending company as soon as we repay the one we took out first
  • Even those who have never used this type of offer can apply for such a loan.

Thus, by choosing one or another type of loan, you should only start from your preferences and desires. The risk of losing the car if we don’t repay the loan we took out is one of the biggest drawbacks of title loans. However, you can receive large sums even if you do not have a stable source of income; all because your car will protect it in this case.

It’s up to you to decide which loan suits you and your needs at any time.


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New rules on the way to buy-it-now and pay-later plans https://katmasters.com/new-rules-on-the-way-to-buy-it-now-and-pay-later-plans/ Wed, 02 Nov 2022 09:37:40 +0000 https://katmasters.com/new-rules-on-the-way-to-buy-it-now-and-pay-later-plans/ The government wants to introduce better checks to buy now, pay later to protect vulnerable Kiwis. Laptop screen showing buy now pay later services. (Source: 1News) “Buy now, pay later” programs are a growing form of unsecured short-term credit used by consumers to pay for goods and services. It does not charge interest, although late […]]]>

The government wants to introduce better checks to buy now, pay later to protect vulnerable Kiwis.

“Buy now, pay later” programs are a growing form of unsecured short-term credit used by consumers to pay for goods and services.

It does not charge interest, although late fees are charged if a payment is missed.

“It’s the right thing to do,” said Trade and Consumer Affairs Minister David Clark.

“As the global cost of living crisis puts pressure on New Zealanders and their families, we are taking action to help them avoid unmanageable debt, particularly as the Christmas season approaches.”

He said the sector has proven popular and grown rapidly – ​​the amount of money spent on these programs in 2021 was $1.7 billion, up from $755 million in 2020.

A spokesperson for Afterpay said it “has always advocated for regulation that delivers good outcomes for consumers, is fit for purpose and proportionate.”

“Getting the right regulatory balance will mean that consumers won’t be pushed back into credit cards and payday loans – products that benefit people who go into debt.”

The government wants affordability checks for purchases over $600 — the same protection in place for borrowers who want to use credit cards and personal loans.

Small loans wouldn’t have to go through the same process, but full credit reports would have to take place, Clark said.

Lenders would also be required to put in place a process in case of difficulties and to adhere to a dispute resolution system.

Consultation on the proposed changes is expected to open later this year, with final regulations adopted in 2023.

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Unbanked Americans at rock bottom https://katmasters.com/unbanked-americans-at-rock-bottom/ Sun, 30 Oct 2022 07:20:24 +0000 https://katmasters.com/unbanked-americans-at-rock-bottom/ NEW YORK – The number of Americans without bank accounts fell to a record low last year, as the proliferation of online-only banks and an improving economy bring more Americans into the traditional financial system. A new report from the Federal Deposit Insurance Corp. published last week revealed that 4.5% of Americans – representing about […]]]>

NEW YORK – The number of Americans without bank accounts fell to a record low last year, as the proliferation of online-only banks and an improving economy bring more Americans into the traditional financial system.

A new report from the Federal Deposit Insurance Corp. published last week revealed that 4.5% of Americans – representing about 5.9 million households – did not have a bank account in 2021. This is the lowest level since the FDIC began tracking the data in 2009 and compared to 5.4% of Americans in the 2019 survey data.

The decline in unbanked households can be partly attributed to the coronavirus pandemic. States and the federal government handed out trillions of stimulus dollars to Americans after covid-19 crippled the US economy in March 2020. Benefit programs largely needed a bank account to send funds quickly to people affected.

“During the pandemic, consumers opened bank accounts to quickly and securely access relief funds and other benefits,” Acting FDIC Chairman Martin J. Gruenberg said in a statement. .

But the FDIC attributed most of the improvement to the strength of the economy in 2021, as restrictions related to the coronavirus pandemic largely expired and the unemployment rate was low.

Black and Hispanic households remain much more likely to not have a bank account, though those numbers are improving. About 11.3% of black households do not have a bank account, up from 13.8% two years earlier. Among Hispanic households, that figure fell from 12.2% to 9.3%.

The top reasons someone would choose to be unbanked were largely unchanged from previous surveys. One in five unbanked households said not having enough money to maintain an account was the main reason they didn’t have one – a sign that being unbanked remains a problem. economic inclusion.

The FDIC began tracking unbanked Americans in 2009. In 2011 data, the number of unbanked Americans increased significantly following the Great Recession. While Americans have kept their bank accounts during the coronavirus recession, the number of unbanked Americans may increase in the future if inflation continues to hurt the economy and unemployment rises.

Other households had privacy and trust issues with banks. Large companies like Amazon have tracked consumer data through credit card usage for some time, but banks also profit from this data.

Americans outside the traditional financial system face many hurdles with their day-to-day finances, which is why policymakers are pushing so hard to get unbanked households to open a savings or checking account. Check cashing services, utility payment services, rent payments without a bank account often come with fees, money that someone with a bank account would not be subject to.

New immigrants and refugees are also among the unbanked. Jhuma Acharya, a former refugee from Bhutan and a case manager with Refugee and Immigration Community Services in Columbus, said he’s seen an increase in clients calling him about businesses that won’t accept not their money.

“I have never worked with a single (new) refugee who said they used a credit card in their lifetime,” Acharya said.

Acharya said customers typically take at least five months to build up enough credit with banks in the United States to open an account. In the meantime, Acharya said they are trying to educate customers on how to set up a debit card and how to use their electronic benefits transfer card.

There has also been a growing number of businesses that no longer accept cash as a form of payment, an issue that several state legislatures have begun to address.

Some states and cities required cash to be accepted before the covid-19 pandemic, such as New Jersey, Massachusetts, San Francisco and Philadelphia. However, at least seven states have passed such bills since the pandemic began, mostly in response to the growing number of contactless businesses following CDC recommendations to limit cash use for fear of spreading the virus.

Delaware, New York, Oregon, Arizona, Colorado, Connecticut and Rhode Island have all passed bills requiring businesses to accept cash, according to data from the National Conference of State Legislatures. More than a dozen states have introduced cash-mandated bills since 2020. At least three bills in the Republican-majority states of Florida, Mississippi and North Dakota have died in committee, along with two bills in New Hampshire and Wisconsin, mostly held by Democrats.

In Ohio, State Senator Louis Blessing III, Township of R-Colerain, introduced a bill in the 2021 legislative session that would open businesses up to lawsuits if they don’t accept cash as a means. of payment. Blessing cited protecting immigrant and poor communities as a driver of the bill, as well as protecting the data privacy of consumers and older people, who are more likely to use cash.

The bill is still pending in the Ohio legislature.

“I think if this bill went to a vote, every Democrat in the state would vote yes,” said Blessing, who was voted down mostly by his Republican counterparts in the Republican-held state.

The survey also revealed that the percentage of so-called underbanked households – those who have a bank account but still use expensive financial services like check cashing, pawnshops, loans payday and remittances – also declined.

The FDIC also found that about half of all US households used a non-bank payment service such as CashApp, Venmo, or PayPal in 2021.

Information for this article was provided by Samantha Hendrickson of The Associated Press.

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Getting ‘stuck’ with payday loans https://katmasters.com/getting-stuck-with-payday-loans/ Sat, 29 Oct 2022 11:03:45 +0000 https://katmasters.com/getting-stuck-with-payday-loans/ Image courtesy of Pixabay By JESSICA LOVECourtesy of Indiana Capital Chronicle Have you ever had your car or truck stuck in the mud; and the harder you try to get out, the deeper your tires sink? I have. So, I know from experience: unless you have the luxury of waiting for things to dry, you’re […]]]>
Image courtesy of Pixabay

By JESSICA LOVE
Courtesy of Indiana Capital Chronicle

Have you ever had your car or truck stuck in the mud; and the harder you try to get out, the deeper your tires sink? I have.

So, I know from experience: unless you have the luxury of waiting for things to dry, you’re going to need some help – a push or a pull – to get unstuck.

And you’re probably going to feel a little embarrassed. I mean, technically, even if you had no intention of getting stuck, no one else was driving. Either you didn’t see the danger in front of you, or you thought it wouldn’t be so bad to go through it.

Even if you didn’t have a good way around it, or if you calculated the risk and thought you could get away with it, the fact remains that it happened and you were “at fault”. Thinking back on it, you wish you had done something other than the fix you were looking for – the one that caused your “tires to sink deep in mud and mud” (for others little blue truck fans).

Now imagine that the vehicle you are thinking of represents your family’s financial health and the process of “no longer stuck” as a result of choosing the option to solve your short-term problem yourself – instead of asking for help. or not to think of you had other options – represents a payday loan. The “solution” then becomes a bigger problem to solve than the original problem.

That’s about where the analogy ends, since muddy patches don’t have business models designed to keep you stuck like payday lenders do. It’s by locking people in more that the profits are really made, where the interest rate eventually hits 391% in Indiana. And you really need to find a solution to your solution.

This is why I often refer to the payday loan industry as one of the most subsidized markets in existence – because government and non-profit resources are so often needed to lift people out of disasters caused by payday loans.

What if it didn’t have to be like this?

One way forward is policy change. For now, the onus is largely on Congress, and your legislative action will help make the Fair Credit for Veterans and Consumers Act – which will cap all payday loans at 36% – a reality. You can also ask your state legislators to impose a 36% cap. But until and even after the legislation is passed, many Hoosiers will still need a more responsible way to borrow.

What if there was another route?

What if most of the 88% of Hoosier voters polled who said they would like to see Indiana have a 36% wage rate cap — who are able to provide another way — have paved the way for a solution alternative for their employees and co-workers?

The impact, to reinforce my analogy, would be shattering for Hoosier families who lack the resources to weather a financial shock.

A specific “bypass” – previously available in only 23 counties – recently became available statewide. If you’re a business owner, or an HR representative, or just someone who wants to talk to your boss about providing a financially viable option to those in your workplace, the solution I present to you is the Community Loan Center program.

It is a small, affordable, employer-focused loan program. So what’s the problem ?

Well, as difficult as it may seem, there really isn’t. For companies enrolled in the program, the CLC program is provided as a benefit at no cost to the employer. Employers literally only have to: 1) confirm employment when a loan is requested and 2) set up a payroll deduction in accordance with the employee’s repayment plan. By doing so, they instantly gain employees who are less stressed and more present for their work.

Made available through non-profit organisations, this affordable 12 month loan is designed to get people into or out of debt instead of trapping them. (CLC loans can be used to repay payday loans.) The reason is simple: nonprofit providers offering this program would rather focus their resources on improving a family’s economic trajectory than on bail out from the earthquake that stems from a payday loan.

Just think about how you could bring this alternative to your workplace – and actually help solve a colleague’s short-term financial problem in a way that makes it manageable and gets people out of the mud without getting stuck. .

Jessica Love is Executive Director of Prosperity Indiana, a statewide membership organization for individuals and organizations that strengthen Hoosier communities.

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More and more students are dropping out of college for money worries https://katmasters.com/more-and-more-students-are-dropping-out-of-college-for-money-worries/ Wed, 26 Oct 2022 21:12:07 +0000 https://katmasters.com/more-and-more-students-are-dropping-out-of-college-for-money-worries/ Students at Hugh School in Long Beach, California, in March 2021. – © AFP Money SHARMA With students now well into their academic year, new data on students in the UK has revealed that 76% fear making ends meet at university and 4% have even considered going to college. give up because of their money […]]]>

Students at Hugh School in Long Beach, California, in March 2021. – © AFP Money SHARMA

With students now well into their academic year, new data on students in the UK has revealed that 76% fear making ends meet at university and 4% have even considered going to college. give up because of their money worries.

This is based on new data compiled by credit management company Lowell. Analysis of this data explores how students finance their time in college, as well as their attitudes toward money and spending habits that cause long-term problems.

Overall, three-quarters of students (77%) develop personal debt problems while in college.

Research shows that many students rely on credit cards (27%), Buy Now Pay Later programs (15%) and payday loans (9%). These measures are more damaging in the long run, affecting credit scores and putting people in debt on top of their student loans.

There are different results around these forms of indebtedness. Although all forms are expensive, some cost more in the long run than others. In the UK, the average annual percentage rate (APR) on a payday loan (a short-term loan) can be as high as 1,500%, compared to a typical APR of 23% on a credit card. A payday loan is usually a short-term loan for small amounts of money with an extremely high APR. For example, if a student borrows £100 with an APR of 50% and agrees to pay it back in a month, they will owe £150 at the end of the month (an additional £50 on top of the original loan).

With Buy Now Pay Later products, these may seem like a solution for students, but this approach can put students at risk of being charged if they are unable to pay.

A recent Save the Student annual survey also found that 32% of students said they use their overdraft as a source of income. While many student accounts have credit limits that increase year over year and with 0% overdraft, after college, many banks expect students to pay off their overdraft within 1 year. to 3 years, which puts even more pressure on graduates to find employment in a competitive job market.

It is also noted that students rely on the support of their family (42%) and their savings (36%). The different sources are described in the following table:

In addition to any student loans or grants you received, what source of income did/do you rely on during your university studies? Percent Response
Supported by family 42%
Savings 36%
Credit card 27%
Discoveries 25%
disposable income 19%
live at home 17%
Buy now Pay later 15%
Payday loans 9%

When it comes to what triggers debt, student spending habits prioritize weekly grocery stores (56%), rent (52%) and bills (44%). The average amount of debt, excluding tuition fees and student loans, that each graduate completed university with was £2,332, taking an average of 3.8 years to pay off in full.

Additionally, 15% of graduates finished university with over £5,000 in additional loans. Additionally, among all respondents, it took 16% of students four years or more to pay off the personal debt they had accumulated in college.

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In a pinch? Here are the four loans you can get the fastest https://katmasters.com/in-a-pinch-here-are-the-four-loans-you-can-get-the-fastest/ Sun, 23 Oct 2022 14:30:49 +0000 https://katmasters.com/in-a-pinch-here-are-the-four-loans-you-can-get-the-fastest/ Image source: Getty Images When you’re in a bind and need cash fast, it’s important to know what your options are. There are different types of loans that you can get relatively quickly, depending on your needs. Before taking out a personal loan, it’s important to understand the different types of personal loans and find […]]]>

Image source: Getty Images

When you’re in a bind and need cash fast, it’s important to know what your options are. There are different types of loans that you can get relatively quickly, depending on your needs. Before taking out a personal loan, it’s important to understand the different types of personal loans and find the one that’s right for you. Here are four of the most common.

1. Credit cards

If you have good credit, you may be able to get a cash advance on your credit card. This is usually a quick and easy process, but it will come with high interest rates. So if you are able to repay the loan quickly, this could be a good option. Cash advances can be very useful in an emergency situation when you need money immediately.

Discover: These personal loans are the best for debt consolidation

More: Prequalify for a personal loan without affecting your credit score

Another benefit of using a credit card for a cash advance is that you may already have money available on your line of credit that you can use. This can be useful if you don’t want to take out a new loan or use other assets as collateral. However, using a credit card for a cash advance also has some drawbacks. First, as mentioned earlier, interest rates on cash advances are usually very high. This means that if you don’t repay the loan quickly, you could end up paying a lot of interest. Also, most credit cards have limits on how much you can borrow as a loan. So if you need a large sum of money, this might not be the best option.

2. Payday Loans

Payday loans are one of the fastest ways to get cash, but they come with high interest rates and fees. They’re usually only for small amounts of money, so if you need a lot of cash quickly, they’re probably not the best option. However, if you just need a little extra money to last you until your next paycheck, a payday loan might work. Payday loans are not ideal, Nevertheless. These are short-term, high-interest loans, usually due by your next payday in a single amount. Currently, 37 states regulate payday loans due to their high costs.

Payday loans are usually for $500 or less and are due on your next payday. Depending on state laws, people can get payday loans online or through a storefront lender. A typical two-week payday loan can have annual percentage rates (APR) as high as 400%. By comparison, credit card APRs can range from 12% to 30%. Payday loans should be considered an option of last resort.

3. Pawnbroker

Pawnbrokers are short-term loans secured by an object of value that people bring to a pawnbroker. As they are backed by the value of the object, they are cheaper than payday loans but are more expensive than a conventional loan. Pawnbrokers are regulated by the government. This type of loan is ideal for people who need cash quickly without a credit check.

Loan terms vary by pawnbroker. People can use valuables, such as jewelry or electronics, to get a loan based on the value of the item. No credit check is required. Those who may not qualify for a traditional loan can consider a pawnbroker. Once the loan amount is paid off, you will receive your items. If you don’t pay it back, the pawnbroker can seize the secured items.

4. Securities Lending

Title loans are another quick way to get cash. They are short lived secured personal loans supported by your car. Financial institutions put a lien on your car. If you are unable to repay the loan, they can seize your car, as it is used as collateral. Title loans generally do not consider your credit and can be approved quickly. However, a title loan is very expensive, with an APR of around 300%.

These are four of the most common types of loans that you can get relatively quickly. Consider which one best suits your needs and compare interest rates and fees before you apply. Understand how these personal loans work can help you make a smarter decision.

The Ascent’s Best Personal Loans for 2022

Our team of independent experts have pored over the fine print to find the select personal loans that offer competitive rates and low fees. Start by reviewing The Ascent’s best personal loans for 2022.

We are firm believers in the Golden Rule, which is why editorial opinions are our own and have not been previously reviewed, approved or endorsed by the advertisers included. The Ascent does not cover all offers on the market. The editorial content of The Ascent is separate from the editorial content of The Motley Fool and is created by a different team of analysts. The Motley Fool has a disclosure policy.

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