 |
Saving Money: Quick Cash, High Cost
I didn't think it was possible. But it is. Folks, there is
something worse out there than putting everyday expenses on a
credit card, then carrying the balance. The guys I'm going to
tell you about make the credit card people look downright
benevolent. Meet your smiling neighborhood cash advance
parlor.
These legal loan sharks go by names like EZ Money, Cash 'N Go,
Red E Cash, Cash in a Flash, the Money Tree, and others.
Here's how it works. You want cash now. Payday isn't for
another two weeks. So you head on down to the loan shop. Just
show them your driver's license, bank statement and pay stub.
Write a check dated two weeks from now for, say, $200. A minute
later, you're back on the street, $170 making a comforting bulge
in your wallet. Two weeks later, the loan shop deposits your
check. Pretty cool, huh?
What's that? You say your check was for $200, not $170? Do you
recall when they mentioned a "small convenience fee"? That's the
missing $30.
What would you say if I told you that "small convenience fee"
amounted to an annual interest rate of 416%?
How do these lenders get away with rates this high when the
credit card companies are limited to 24% or less (cry me a
river)? Because, technically, you don't pay any interest. Just
that flat fee.
So what are the alternatives? Just try going into a bank and
asking to borrow a couple hundred for a few days. I can still
hear the loan officer giggling. Not a pretty sound.
One great alternative goes by many names. My bank calls it
"Ready Reserve." It's a revolving line of credit tied to my
checking account. If I write a check for more than my account
balance, good ol' Ready Reserve transfers in money to cover the
check. Next payday, I cover the reserve by telling the bank to
apply part of my deposit to the reserve account. There's a small
annual fee (around $10), plus credit card rates are applied to
any standing balances.
If your need for cash is truly occasional, for unforeseen
emergencies (are there foreseen emergencies?), try being your own
quickie lender. Hold a garage sale, auction off some stuff, or
take on part-time or temporary work in order to put a few hundred
dollars in a war chest. Take the cash and buy traveler's checks.
Put them away; just don't forget where. When you need the money,
write out a check, put it in your stash, and take out the
traveler's checks. Next payday, buy more traveler's checks and
"redeem" your check. If you don't do it this way, most of you
won't pay back the stash.
(Note: Some traveler's checks expire. Make sure you redeem
them for new checks before the expiration date.)
If you find yourself short of money month after month, you
need to make more money. Taking a $200 cash advance 10 times a
year will cost you $300 a year or more.
John McCabe's
Web Guides show you how to find more and better success in
all facets of your life.
For more articles on living an abundant, vibrant, joyous life,
come to http://Web-Guides.com
MORE RESOURCES:
Credit - Google News
|
|
|
RELATED ARTICLES
What To Look For In A
Credit Card
When you are deciding what type of credit card to get it is
important to compare credit cards to each other and find
the best deal for you. There are a variety of different
credit cards available, from low interest cards, cash back
cards and even reward credit cards, it's hard to decide
what exactly the best credit cards are.
Comprehending a Credit
Report
Obtaining a credit report is an excellent way to begin
taking control of your financial future. It's recommended
that you review your credit report once a year, not only to
be aware of your standing with creditors but to also keep
abreast of errors and fraud.
Your Guide On Choosing a
Credit Card To Suit You
Reach into your wallet or purse, pull out a card, swipe,
and you're done. It is very easy to use a credit card.
Credit and Banking Money
Saving Services
The first rule when applying for banking and credit
services is to always read the fine print and to understand
all of it. Read up, take it home, and analyze it, ask the
banking manager questions.
Repair Your Credit - The
Right Way!
How to Repair a Bad Credit Rating?The Right Way!If you have
a bad credit rating, then you might find that your ability
to get financing, loans, and even some jobs is greatly
diminished.Once you have a bad credit rating, it might seem
like there's nothing that you can do about it? but you
don't have to believe that.
How To Get a Low
Interest Credit Card
Consumers often have the first credit card that they ever
applied for, never really analizing how the interest rate
affects their payments, but many other options exist and
can help consumers decrease their payments and achieve
financial stability.With interest rates on some credit
cards rising to over 23%, even low balance credit card debt
can be crippling.
Balance Transfers
Introduction
Credit card balance transfer involves using a credit card
to pay off the amount outstanding on one or more
credit/store cards. The total debt then moves to one card.
Useful Tips When Choosing
Credit Cards
Chances are you have received your share of "pre-approved"
credit card offers in the mail, some with low introductory
rates and other perks. Many of these solicitations urge you
to accept "before the offer expires.
Making Sense of the
Information in Your Credit Report
If you've ever applied for a credit card or loan, you've
probably had your credit report reviewed by the lender.
Your credit report has a huge impact on your financial
future, so it's well worth your time to be sure that you
understand what your credit report says about you.
Building A Credit Report
Lenders Will Love You For
Will lenders really love you for having a good credit
report score? Love is not the right word of course; lenders
are after your money, and never forget that. But the
lender's representative will love dealing with your credit
application if your credit report is good.
Credit Cards and How To
Choose Them:
It may seem like a simple question but its important to
take into account a few factors when choosing your credit
card. If you are in the enviable position of being able to
pay off your card every month then you are amongst the few.
Credit Repair Scam - How
To Avoid Being A Statistic?
A good credit history is critically important for the
consumer. A bad credit will prevent you from getting a
business loan, owning a home, or even a job.
How You Can Help Prevent
Identity Theft
How can I prevent Identity theft from happening to me?
Never leave your receipt or slip in the ATM or gas pump.
Pay attention to your habits, lock up or organize and file
your bills, and bank statements.
What Is a FICO Score and
How Do I Make It Work for Me?
Whether or not you receive a loan and what interest rate
you get on your credit card may be determined by something
called a FICO score. Named for Fair, Isaac & Co.
Warning: Todays Non
Profit Credit Counselors Are Yesterdays Bill
Collectors!
Here's a dirty secret, today's "non profit credit
counselors" are often just front organizations paid
lucrative commissions by creditors to keep consumers from
declaring bankruptcy!In the "debt collection biz",
creditors will sell your outstanding debt along with the
debt of hundreds of others to a collection agency for cash
up front.The collection agencies will work this debt until
they've made all the money they can.
Bad Credit? No Credit?
Yeah, Its a Problem.
Many companies use the slogan "Bad Credit? No Credit? No
Problem!" The truth is that it is in fact a problem and
there is no easy way to correct it. It takes a lot of time
and effort to obtain credit when you do not have any and
even longer to fix bad credit.
3 Ways to Improve Your
Credit Score by 50 Points In Less Than 30 Days
In Less Than 30 Days. "What can you do to increase
that set of three numbers on your credit report that can be
so important with your financing?" I came across this
question as I was surfing discussion groups the other day.
Keep Your Credit History
Clean - Remove A Negative Credit Record From Credit
Report
The three major credit bureaus, Experian, Equifax and Trans
Union are similar and feature a "Credit Score", which is
created from credit report data submitted to them about
you.But very often your credit report includes inaccurate,
wrong or incomplete information (credit records).
Credit Cards: Pros and
Cons
Sure, there are a lot of problems with credit cards, but
there are a lot of good things attached to them as well.
For instance, if you have a small business, fleet credit
cards can keep your books in order when you issue them to
drivers of company vehicles for gas and automobile repairs.
To Repair Credit Is No
longer Satisfactory - Learn How To Earn A Millionaires
Credit In 30 Days...
To repair your bad credit does not necessarily mean that
you now have a good credit, absolutely not. When most
people have bad credit, they either purchase a credit
repair book or seek a credit expert help.
|
|
