Financial Capital – Premudraja http://premudraja.net/ Sat, 24 Sep 2022 15:00:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://premudraja.net/wp-content/uploads/2021/06/icon-4-150x150.png Financial Capital – Premudraja http://premudraja.net/ 32 32 Financial Inclusion of the “Unbanked” Could Ease U.S. Economic Hardship https://premudraja.net/financial-inclusion-of-the-unbanked-could-ease-u-s-economic-hardship/ Sat, 24 Sep 2022 15:00:00 +0000 https://premudraja.net/financial-inclusion-of-the-unbanked-could-ease-u-s-economic-hardship/ Across rural America and in the nation’s urban centers, there is a little-known barrier to economic growth and personal prosperity that is preventing millions of people from achieving financial independence and building personal prosperity. Many people are “unbanked” and do not have a bank account, while others are “under-banked” and must use alternative financial services […]]]>

Across rural America and in the nation’s urban centers, there is a little-known barrier to economic growth and personal prosperity that is preventing millions of people from achieving financial independence and building personal prosperity.

Many people are “unbanked” and do not have a bank account, while others are “under-banked” and must use alternative financial services such as money orders, check cashing services and loans payday rather than traditional loans and credit cards to manage their finances and funds. purchases. Both situations prevent millions of people across the country from having personal financial stability and harm our overall economic growth.

Despite significant progress over the past decade toward reducing the number of underbanked and unbanked people in the United States, there is a growing bipartisan consensus that now is the time to redouble efforts toward a true financial inclusion. Financial inclusion must go beyond the banking sector to have a tangible impact on the financial lives of Americans. Financial inclusion means that individuals and businesses have equitable access to affordable financial products and services to meet their payment, savings, credit and insurance needs.

That’s why more than 110 businesses, trade and consumer groups have joined the Aspen Institute’s Financial Security Agenda, calling for a national financial inclusion strategy to deliver better financial outcomes for everyone. everyone, regardless of postcode. This unprecedented coalition brings together a large number of diverse entities advocating for a national financial inclusion strategy. It represents the full range of sectors and policies that need to be addressed as part of a coherent approach.

For too long, the United States has taken a piecemeal approach to financial inclusion. Federal agencies, financial institutions, community organizations, and advocacy groups have led significant individual initiatives to address the lack of inclusive financial systems in the United States, but there has been no cohesive strategic effort to address this. very complex problem.

The Biden administration’s executive order making support for racial equity in underserved communities a top priority for federal agencies was a good first step, but data shows more action is needed.

For example, more than 7 million households across the United States are still unbanked and are disproportionately black, Hispanic, Native American, or Alaska Native. Nearly 10% of rural Americans lived in “banking deserts,” compared to 1.7% of urban Americans.

It’s not just rural Americans who are being left behind. In a 2020 report by McKinsey, data reveals that exclusionary policies and strategies — from limited access to federal mortgages to geographic barriers to physical bank branches — have hindered the economic well-being of black people.

In fact, recent research reveals that Black and Latino households account for more than half of the interest and fees on payday loans (22% and 29%, respectively), despite making up less than a third of the population. . A New America report found that financial institutions charge Latino consumers $262 more to open a checking account than their white counterparts.

Research from the International Monetary Fund shows a difference in GDP growth of 2 to 3 percentage points over the long term between financially inclusive countries and their peers. The U.S. lags other countries because it lacks a comprehensive financial inclusion strategy, but a presidential commission can set common goals for federal agencies and the private sector to expand financial inclusion policies. financial inclusion, developing ongoing means of coordinating action among key agencies and organizations, and tracking progress toward building an inclusive financial system in the United States

Organizations from all political and philosophical persuasions have realized that our national failure to create a coordinated strategy to promote financial inclusion is hurting those involved and limiting our financial growth. A recent analysis from multiple sources by McKinsey & Company estimates that promoting financial inclusion could result in 4-6% real GDP growth by 2028.

Solving this unsolvable agenda requires bold leadership across sectors to establish a shared vision of how policies, products and business models can create the inclusive financial systems needed to generate an equitable and sustainable economy.

This recommendation is the culmination of years of research and dialogue with key voices in the financial services industry and those who have been systematically excluded. It’s time to put all Americans on a path to better outcomes and create greater financial security for all.

Ida Rademacher is Vice President of the Aspen Institute and Executive Director of its Financial Security Program.

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Personify Personal loans: 2022 balance sheet, rates https://premudraja.net/personify-personal-loans-2022-balance-sheet-rates/ Thu, 22 Sep 2022 21:25:30 +0000 https://premudraja.net/personify-personal-loans-2022-balance-sheet-rates/ Insider experts choose the best products and services to help you make informed decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own. Terms apply to offers listed on this page. The bottom line: Personify is a solid option for borrowers who can’t […]]]>

Insider experts choose the best products and services to help you make informed decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own. Terms apply to offers listed on this page.

Personalize personal loans

Costs

5% setup fee (except in GA, SC), $25-$30 late fee

APR

19.00% – 179.50%, varies depending on your state

Personify Personify Personal Loans

Costs

5% setup fee (except in GA, SC), $25-$30 late fee

APR

19.00% – 179.50%, varies depending on your state

APR

19.00% – 179.50%, varies depending on your state

Costs

5% setup fee (except in GA, SC), $25-$30 late fee

Chevron icon It indicates an expandable section or menu, or sometimes previous/next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous/next navigation options.

You can get a Personify installment loan in 25 states:

  • Alaska
  • Alabama
  • Arizona
  • Delaware
  • Florida
  • Georgia
  • Idaho
  • Indiana
  • Kansas
  • Kentucky
  • Louisiana
  • Michigan
  • Minnesota
  • Missouri
  • Mississippi
  • Montana
  • New Mexico
  • Ohio
  • Oklahoma
  • Caroline from the south
  • Tennessee
  • Texas
  • Utah
  • Washington
  • Wisconsin

Most states allow you to choose between a term of 12, 18, 24, 36 or 48 months. You can borrow from as little as $500 to as much as $15,000. Your APR will vary from 19% to 179.50%.

However, borrowers in Georgia and South Carolina will find slightly different numbers:

Advantages and Disadvantages of Personify Personal Loans

Personify is best for people with poor credit who have exhausted other borrowing options. Borrowers who want their money fast may also like Personify because it funds loans within one business day.

Remember that if you have a low credit score, you may have to pay very high interest rates which could add hundreds or thousands of dollars to the cost of your loan. If you have a good credit score, you can probably get better terms from a lender other than Personify.

Personify Personal Loan Comparison

How Personify Compares

Chevron icon It indicates an expandable section or menu, or sometimes previous/next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous/next navigation options.

Editor’s note

3/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Regular APR

19.00% – 179.50%, varies depending on your state

Editor’s note

2.5/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Regular APR

up to 306.00% (rates vary by state)

Editor’s note

2/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Regular APR

35.99% to 211% APR, depending on your condition

MoneyKey, Fig Loans and Personify are slightly cheaper alternatives to payday loans, many of which have interest rates around 400%. However, you will still pay a much higher interest rate with these three loans than you would with a traditional personal lender.

All three companies have term lengths based on where you live. Personify terms range from 12 months to 48 months, Fig has terms ranging from one to six months. MoneyKey has a term of six or 12 months.

None of the three companies has a minimum credit score to qualify, so they could be a good option for borrowers who have been turned down by other companies due to a bad credit history.

Compare personal loan rates

Frequently Asked Questions

Personify is a Better Business Bureau accredited company with an A+ rating from BBB, a non-profit organization focused on consumer protection and trust. The BBB measures companies by evaluating their responses to customer complaints, the truthfulness of advertising and the transparency of business practices.

The company has not been involved in any recent controversies. Between its clean track record and top-notch BBB rating, you can feel comfortable borrowing from the lender. However, an excellent BBB rating does not guarantee a good experience with the company. Talk to other people who have used Personify before deciding to go with the lender.

There is no minimum credit score requirement for a Personify loan.

No, a Personify loan is not a payday loan. Payday loans are usually taken out of your next paycheck and charge exorbitant rates – usually around 400%. Personify loans have longer repayment terms and no prepayment penalties.

Your rate will vary from 19% to 179.50%, depending on your creditworthiness and other financial factors.

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TV tonight: The voices of ending Britain’s cost of living crisis speak out | Television https://premudraja.net/tv-tonight-the-voices-of-ending-britains-cost-of-living-crisis-speak-out-television/ Wed, 21 Sep 2022 05:10:00 +0000 https://premudraja.net/tv-tonight-the-voices-of-ending-britains-cost-of-living-crisis-speak-out-television/ Dispatches: Broke – UK Debt Emergency 10 p.m., Channel 4 Despite being called ‘insignificant’ compared to recent royal news by a certain BBC reporter, the cost of living crisis has certainly not gone away – in fact, it will get worse. In this special episode of Dispatches, debt advisers from Citizens Advice and some of […]]]>

Dispatches: Broke – UK Debt Emergency

10 p.m., Channel 4

Despite being called ‘insignificant’ compared to recent royal news by a certain BBC reporter, the cost of living crisis has certainly not gone away – in fact, it will get worse. In this special episode of Dispatches, debt advisers from Citizens Advice and some of the 14 million people the organization says won’t be able to pay their energy bills this fall, tell their stories. In Southend, mum Carly is facing £20,000 debt following payday loans. In Manchester, Mateena, 28, says she lives on sugar cubes for her meals. This is the reality explored here. Hollie Richardson

Handmade: Britain’s finest cabinetmaker

8 p.m., Channel 4

A little more… After its debut last year, the wood-themed tribute Bake Off hosted by Mel Giedroyc returns with two new judges in the form of entrepreneur Sophie Sellu and design expert Tom Dyckhoff. The new group of 10 candidates seems enthusiastic, but can they create a knockout table in two days? Graeme Virtue

Sky Arts Book Club

8 p.m., Sky Arts

Raven Smith – aka “Instagram’s Funniest Man” – joins Andi Oliver and Elizabeth Day to talk about her hilarious book Men. Tahmima Anam also discusses his tech-satire novel The Startup Wife, while the ultimate bookworm Simon Savidge shares his recommendations. HOUR

Kabul airport escape

9 p.m., BBC 2

Desperate days… Evacuees trying to break through the airport perimeter, in Escape from Kabul Airport. Photo: Pajhwok Afghan News/BBC/Amos Pictures

It was 18 desperate and dramatic days in August 2021 when the United States ended its longest war by staging the largest airlift operation in its history. This feature-length documentary combines shocking on-the-ground footage of the unfolding humanitarian catastrophe and interviews with fleeing Afghan citizens, US Marines and even Taliban fighters. Ellen E. Jones

Copper

9:45 p.m. Sky Max

The tattered and irresistible petty crime continues. Tonight, Joe Gilgun’s Vinnie leads his hapless friends through an adventure in the woods, which is disrupted by cocaine-induced paranoia and diarrhea-inducing foraging. The group dynamic is well captured and Gilgun is as endearing as ever: optimistic but with a winning advantage of vulnerability. Phil Harrison

Great

11:05 p.m., Channel 4

In the penultimate episode of the series, baby Paul arrives (huzzah!), Georgina sends a new wife to court, and Marial finds herself newly engaged. But none of this can stop Peter from worrying about Catherine finding out that he, as he puts it, “fucked his mother and killed her.” HOUR

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Debt troubles as UK public sector workers turn to buy now, pay later | Buy now, pay later https://premudraja.net/debt-troubles-as-uk-public-sector-workers-turn-to-buy-now-pay-later-buy-now-pay-later/ Mon, 19 Sep 2022 16:02:00 +0000 https://premudraja.net/debt-troubles-as-uk-public-sector-workers-turn-to-buy-now-pay-later-buy-now-pay-later/ Experts have raised concerns that cash-strapped public sector workers are turning to controversial purchases now, repaying loans later after being turned down by traditional lenders. An analysis by the University of Edinburgh found that one in 10 public sector and NHS staff, initially turned down for a more conventional loan on the grounds that they […]]]>

Experts have raised concerns that cash-strapped public sector workers are turning to controversial purchases now, repaying loans later after being turned down by traditional lenders.

An analysis by the University of Edinburgh found that one in 10 public sector and NHS staff, initially turned down for a more conventional loan on the grounds that they could not afford to repay it, went on to got a buy now, pay later (BPL) credit last year.

The researchers also found that the overall use of BNPL products among public sector employees had “significantly increased” compared to other credits and loans, and was beginning to supplant other non-traditional lenders such as those offering high interest payday loans.

Professor Tina Harrison, from the University of Edinburgh’s business school, warned that the growing use of BNPL – which is still unregulated in the UK – increases the risk that workers in the sector public are in arrears.

“The increase in the use of BNPL, particularly among those with very low financial resilience, is extremely concerning,” she said. “If left unchecked, BNPL has the potential to lead to an unmanageable debt burden very quickly.”

BNPL companies such as Klarna, Clearpay and Laybuy have grown rapidly during the pandemic as online shopping has exploded. Although buyers generally do not pay interest on their purchases, they are still at risk of becoming over-indebted and are not entitled to forbearance or compensation if things go wrong, as these companies are not yet regulated in the Kingdom. -United.

A study published by Barclays Bank and the charity Stepchange in June found that almost a third of BNPL borrowers said their loans had become unmanageable and had pushed them into debt. Shoppers who used these services refunded an average of 4.8 purchases, nearly double February’s 2.6 purchases.

The Edinburgh research analyzed the transactions of 104,661 NHS and public sector workers who applied for a loan from non-profit lender Salad Money but were rejected on the grounds that they were unable to repay .

Salad Money, which commissioned the survey, provides loans exclusively to public sector workers. Analysis of 174 million anonymized bank transactions by public sector workers found that 54% had experienced the return of direct debits – a key indicator of financial hardship.

The head of Responsible Finance – an industry body that oversees the UK’s not-for-profit lenders, known as Community Development Finance Institutions (CDFIs) – said it was “shocking” to see the BNPL approval rate among previous rejected loan applicants.

“How can it make sense that if a responsible lender says ‘no, this loan is not affordable,’ an under-regulated, well-funded tech darling can say yes?” said Theodora Hadjimichael.

The findings were released as part of a report showing many key workers would struggle to pay an unexpected £100 mid-month bill as staff whose transactions were analyzed had, on average, no only £79 in their account at that time. midpoint.

It also found that BNPL users spent more relative to their income and tended to have higher overdrafts, while a significant minority were heavily in debt. Although it is not possible to blame BNPL for these trends, the analysis revealed that its use tended to increase over time.

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BBB warns against predatory loan scams and offers advice to protect consumers https://premudraja.net/bbb-warns-against-predatory-loan-scams-and-offers-advice-to-protect-consumers/ Fri, 16 Sep 2022 18:04:42 +0000 https://premudraja.net/bbb-warns-against-predatory-loan-scams-and-offers-advice-to-protect-consumers/ The Better Business Bureau (BBB) ​​warns consumers about the dangers of predatory loan scams. According to the BBB, a recent study shows that between 2019 and 2021, the scam tracker received more than 7,800 reports of loan and debt collection scams, representing more than $4 million in losses. Scammers posing as payday loan companies or […]]]>

The Better Business Bureau (BBB) ​​warns consumers about the dangers of predatory loan scams.

According to the BBB, a recent study shows that between 2019 and 2021, the scam tracker received more than 7,800 reports of loan and debt collection scams, representing more than $4 million in losses.

Scammers posing as payday loan companies or debt collectors use stolen financial information to trick customers into paying using hard-to-trace sources like gift cards, payment apps, and money orders.

“Never pay a fee up front, also read the fine print of any contract and make sure your payday lender if you’re using one is licensed in the state of Minnesota,” said BBB’s Bao Vang.

Here are five ways scammers try to lure you:

  • Steal information about payday loan customers.
  • Scammers offer to take out payday loans or pressure customers into believing they still owe debt.
  • They also pose as debt collectors.
  • Scammers can also request payment through hard-to-trace sources such as gift cards, payment apps, and money orders.
  • They can also threaten legal consequences if you don’t act immediately.

The BBB says consumers should be aware of the following:

  • Unexpected calls to apply for a loan or collect a debt.
  • Loan offers that ask for a fee before a loan.
  • Comparison of short-term interest rates.
  • The handing over of any personal information, including bank details.

If you think you’ve come across a scam, CLICK HERE to report it to the BBB.

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Can undocumented immigrants apply for a credit card? https://premudraja.net/can-undocumented-immigrants-apply-for-a-credit-card/ Wed, 14 Sep 2022 11:00:31 +0000 https://premudraja.net/can-undocumented-immigrants-apply-for-a-credit-card/ After arriving in the United States, an undocumented immigrant has to deal with so many things that are foreign to him. Among them: the US financial system, which can be difficult to navigate even for those born in the US. Getting a credit card can be one item on an undocumented immigrant’s financial to-do list. […]]]>

After arriving in the United States, an undocumented immigrant has to deal with so many things that are foreign to him. Among them: the US financial system, which can be difficult to navigate even for those born in the US.

Getting a credit card can be one item on an undocumented immigrant’s financial to-do list. Undocumented immigrants can apply for a credit card in the United States, but they may have to jump through some hurdles to do so. These could include obtaining a federal tax identification number or obtaining a secured credit card.

“Many people we talk to in the immigrant community struggle to access credit because they haven’t had access to financial education about their rights in the financial system,” says immigration attorney Adina Appelbaum. , Certified Financial Advisor and Co-Founder of Immigrant Finance.

Immigrants tend to rely on expensive alternative financial services, such as check cashing companies, payday lenders and pawnbrokers, at great expense. Meanwhile, the services of traditional banks tend to be much more affordable. An undocumented immigrant’s financial education should focus on high-cost alternative financial services, says Magnus Larsson, co-founder and CEO of Majority (a digital bank for migrants).

Do you need a social security number to get a credit card?

No federal law prohibits an undocumented immigrant from getting a credit card in the United States, Applebaum says.

Based on their business practices, some credit card issuers require an applicant to provide a social security number. However, many credit card issuers accept an individual tax identification number as an alternative to a social security number. The nine-digit ITIN, while similar to the nine-digit SSN, is issued for tax purposes and does not entitle you to work in the United States or receive the benefits of the SSN.

Even with an ITIN, an applicant may not be approved for a credit card if they have no credit history. Not having a credit history is not inherently bad, it only means that you have never used credit-building financial products, such as a credit card or loan, in the United States.

If a Social Security number or ITIN is not an option, some credit card issuers may accept the applicant’s foreign passport or US driver’s license. Another alternative is Nova Credit’s Credit Passport, which an issuer can use to view an applicant’s overseas credit history.

Credit card issuers that do not require an SSN

Credit card issuers that do not require an SSN include:

  • American Express
  • Bank of America
  • Capital one
  • Hunt
  • Town

How an undocumented immigrant can apply for a credit card

Contrary to popular belief, there are many other ways for an undocumented immigrant with no recorded credit history in the United States to obtain a credit card.

Get a secure credit card

Unlike an unsecured credit card, a secured credit card usually requires a cash deposit which acts as collateral. The guarantee protects the card issuer by guaranteeing repayment of any debt you may accumulate on the card. The credit limit for one of these cards is usually 50% or 100% of the deposit amount.

The purpose of a secured credit card is to help someone establish their credit history and then transition to a traditional unsecured credit card. Most, but not all, secured credit cards report a cardholder’s payment history to the credit bureaus, which slowly helps your credit score go up. If this information is not reported, your credit score will not increase, so be sure to apply for a secure card that regularly reports your payment activity.

Ask someone to be a co-signer

Another way to get a credit card is to find a co-signer. As part of this arrangement, someone else (often a relative) agrees to cover card payments or the entire balance if the primary cardholder is unable to do so. Keep in mind, however, that many major credit card issuers don’t allow co-signers.

Become an authorized user

You can also request to be added as an authorized user on someone else’s credit card. As an authorized user, you get your own card connected to the primary cardholder’s line of credit. This allows you to use the card to spend and enjoy all the benefits of the card.

The account holder is financially responsible for the monthly card payments and the entire card balance, although you can of course make arrangements with the primary card holder to pay them your balance each month. The person whose card account you join is usually a spouse or relative, but a friend is also possible, provided they are trustworthy and financially responsible.

If you or the primary account holder make payments on time each month, it will positively reflect on both of your credit reports, as payment history is regularly reported to the credit bureaus. This could be very advantageous for both parties. Some credit issuers do not report authorized user activity, so make sure your issuer does before you become a user.

Request a joint account

Another option is to apply for a joint credit card account with someone else, such as a spouse or family member, which makes you both the primary cardholder and responsible for covering the balance. The main attraction – maybe with your two incomes, the issuer will feel more confident to extend credit to you.

As with an Authorized User, each joint account holder’s payment activity is generally reported to the credit bureaus. So, if payments are made on time and regularly, you could see your credit history get stronger. However, note that many card issuers no longer offer joint credit accounts.

Get a credit card with no credit history

Some card issuers might be willing to approve an undocumented immigrant for a traditional unsecured credit card even if they have no credit history. It should be noted, however, that cards with no credit history may have drawbacks such as a higher than normal interest rate or a lower than normal credit limit. Still, if you’re careful not to overcharge your card and pay your bills on time each month, these cards work just as well for building up your credit.

Applebaum says that in many other countries credit is less commonly used than in places like the United States. Therefore, an undocumented immigrant may arrive in the United States with no credit history.

“For immigrants who have a credit history in their home country, many are unable to transfer their credit history once they arrive in the United States, so they have to start from scratch,” she says. “In addition, people who have no immigration status or who have uncertain and temporary types of status or who are in between statuses may have difficulty opening credit cards and not knowing if they are eligible to have them in the first place.”

How to Build Credit as an Undocumented Immigrant

“Learning to manage a credit card responsibly and pay it off in full each month over time is one of the best ways to build a solid credit score through payment history and length of credit. credit history,” says Applebaum.

Payment history makes up 35% of your FICO credit score, the most widely used scoring model, while length of credit history makes up 15%. Here are some other tips you could try to build your credit:

  • Open a bank account in the United States Some credit card issuers may require an applicant to have a US bank account.
  • Pay all your bills, such as rent and utility bills, on time each month. Not only will you get used to paying your bills regularly, but you can also include these payments in your credit report through Experian Boost.
  • Maintain a low overall amount of debt. The amount of debt you carry relative to your total credit limit, also known as the credit utilization rate, is 30% of your FICO credit score. “Don’t get caught in the spiral of expensive credit,” advises Larsson.
  • Consider transferring your credit history from your home country to the United States Larsson says credit card issuers “need to go beyond the existing credit score system” to account for disadvantaged consumers like undocumented immigrants.
  • Avoid applying for too many credit cards at once. Those with credit ratings would experience several tough demands, which would lower your rating by a few points. When it comes to people with no credit, you still shouldn’t apply for too many cards at once – lenders will think you have financial problems and pose greater credit risk.
  • Avoid payday loans. The APR for a payday loan can be 400% or more, which is much higher than the typical APR for a credit card or personal loan. Larsson calls payday loans an “evil” form of credit that preys on undocumented immigrants.

The bottom line

Navigating the US financial system as an immigrant, including the process of obtaining a credit card, can be daunting. “The system is not designed for people who weren’t born and raised here financially,” Larsson says.

Fortunately, credit cards are available to undocumented immigrants, although they can be difficult to obtain. And, there “are no shortcuts,” says Larsson.

You don’t necessarily need a social security number to qualify for a credit card. In addition, several credit options are available for undocumented migrants who wish to obtain a credit card. These include a secured credit card, which requires a cash deposit, or a credit card designed for someone with no credit history. By working through the application process and being responsible for credit, an undocumented immigrant can reach over 80% of adults in the United States who have credit cards.

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These loans should be avoided..? Do you know why? https://premudraja.net/these-loans-should-be-avoided-do-you-know-why/ Sat, 10 Sep 2022 12:03:01 +0000 https://premudraja.net/these-loans-should-be-avoided-do-you-know-why/ These loans should be avoided..!? Do you know why? Many people think they shouldn’t take out loans. But at the end of the month, we will be forced to take out loans. This will be unavoidable in middle-class families earning a monthly salary. However, experts say they can avoid taking out some loans. Why do […]]]>
These loans should be avoided..!? Do you know why?

Many people think they shouldn’t take out loans. But at the end of the month, we will be forced to take out loans. This will be unavoidable in middle-class families earning a monthly salary. However, experts say they can avoid taking out some loans. Why do we say to avoid only certain loans? What is the reason for this? Let’s see.
Payday loan:
It is impossible to avoid borrowing during the current period, but it is very important to avoid payday loans. In particular, these loans are taken by small entrepreneurs, small traders and those who have shops in the daily market as individuals. You have to buy it in the morning and pay in the evening. Interest on these types of loans can be very high. It should therefore be avoided.
Car title loan:
A car title loan is usually a high interest loan. You can donate your vehicle and get it back within a month with interest first. Usually the interest on these loans is high. The vehicle may be sold if payment is not made within the time limit.
Credit card advance:
In order not to use credit cards unnecessarily, some people take credit card advances. After that, interest may continue to accrue as interest. The interest rate is very high. If you don’t pay it on time, the penalty is very high.Casino loan:
Such loans are very rare in India. However, these loans are loans that should be avoided. These loans are used to promote sports in foreign countries.
Pawnbroker:
Many people can have this experience. Usually we get such loans by pawning our jewelry. Failure to pay this debt on time may result in your property being auctioned off. This includes restricted loans of a lower amount for more expensive properties in rural areas.

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With very high inflation, taxpayers are reconsidering their payment options https://premudraja.net/with-very-high-inflation-taxpayers-are-reconsidering-their-payment-options/ Fri, 09 Sep 2022 08:54:40 +0000 https://premudraja.net/with-very-high-inflation-taxpayers-are-reconsidering-their-payment-options/ Taxpayers often wonder how to repay their tax debts. But with inflation and rising interest rates, these questions are becoming more common, and the standard answers don’t always apply. To make a good decision, it is important to understand how the IRS applies interest and penalties to tax bills. Penalties Two common penalties for individual […]]]>

Taxpayers often wonder how to repay their tax debts. But with inflation and rising interest rates, these questions are becoming more common, and the standard answers don’t always apply.

To make a good decision, it is important to understand how the IRS applies interest and penalties to tax bills.

Penalties

Two common penalties for individual taxpayers are default in payment (FTP) and default in reporting (FTF). The FTP penalty is 0.5% of the unpaid taxes for each month the tax remains unpaid. The FTF penalty is much higher – 5% of unpaid taxes for each month late filing – which is why you must file even if you can’t pay what you owe. In either case, the penalty will not exceed 25% of your unpaid taxes.

A Quick Note: The IRS recently announced that they will automatically waive the FTF penalty for individual returns for the 2019 and 2020 tax years filed on or before September 30, 2022.

Importantly, the IRS charges interest on penalties.

Interest

For people who owe money to the IRS, the interest rate is calculated using the federal short-term rate plus 3 percentage points. The IRS sets and publishes interest rates quarterly for the current year and previous years. You can consult the current rates and the rates of previous years on the IRS website.

Payment Considerations

This backdrop is key to understanding your options – math matters. But I also appreciate that convenience, long-term consequences, and the ability to rest easy at night are also important in your decision-making process. Although it’s best to pay now, it’s not always realistic. Here are some general recommendations for dealing with unpaid tax bills when you can’t pay immediately. Your mileage may vary.

just say no

Empty retirement accounts. Draining your retirement accounts to pay off an unpaid debt can be tempting, and the IRS considers funds held in a retirement or profit-sharing plan to be assets available for collection. But I still maintain that draining retirement accounts should be avoided for most taxpayers.

Beyond the obvious – you’re giving up the money you’ve been counting on for your future – you’ll take an immediate hit. Withdrawals from most accounts will be taxable, so you will have to pay tax on the money you use to pay taxes and, depending on your age and circumstances, you may also be subject to an early withdrawal penalty of 10%. Certain penalty exceptions may apply, including funds used to settle an IRS levy under Section 72

]]> Payday Loan Scams Consumers Should Be Aware Of: Fake Loans, Stolen Information, Fraud https://premudraja.net/payday-loan-scams-consumers-should-be-aware-of-fake-loans-stolen-information-fraud/ Sun, 04 Sep 2022 20:49:06 +0000 https://premudraja.net/payday-loan-scams-consumers-should-be-aware-of-fake-loans-stolen-information-fraud/
Payday loans in the US are a hugely predatory industry, and now the landscape is getting worse as scammers pose as popular lenders try to scam people. A new Better Business Bureau report on these scammers has shed light on the story of Shirleywho “received a call from a woman who said her name was”Lawrence […]]]>

Payday loans in the US are a hugely predatory industry, and now the landscape is getting worse as scammers pose as popular lenders try to scam people.

A new Better Business Bureau report on these scammers has shed light on the story of Shirleywho “received a call from a woman who said her name was”Lawrence Green.Lauren told Shirley that she “qualified for a $5,000 loan from the West Point lenders” but that shehad to do was pay $535 as a feebefore the money is deposited into their account. Then Green again said that “another $535 was needed because his credit wasn’t good enough.” However, once Shirley handed over the $1,070, Lauren disappeared with Shirley’s money, and when she went to search, she discovered that the company was fake and that her information had been stolen.

To be fowarding something…

Many scammers use names close to major payday lenders to work on the notoriety of some of these companies. The BBB has warned that fraudsters posing as debt collectors can also use the same tactics to “make their threats more serious”.

How many payday lender scams have been reported this year?

While the total number of scam attempts reported to the BBB has gone down, the amount that has been taken from those defrauded has increased over the years:

  • 2019 – Reports: 1,151 | Losses: $856
  • 2020 – Reports: 741 | Losses: $900
  • 2021 – Reports: 760 | Losses: $765
  • 2022 – Reports: 403 | Losses: $1,000.

These figures should be taken with caution since the BBB estimates that only about ten percent of fraud cases of this nature are reported to the organization – meaning that the extent of the problem is much bigger than these numbers represent.

The feds should take notice of people’s willingness to engage in the scam, as many have reported falling for the trap because “they were already in debt due to payday loans.” After being scammed, some victims also reported: “months behind on rents and other bills, due to the financial consequences of these scams.”

A general warning for those interested in a payday loan

Payday lenders are one of the least regulated aspects of financial services. The BBB reported that their scam trackers show “that despite efforts across the country to limit the power of payday loan companies, many Americans are still trappedin debt cycles after taking out any of these loans. These agencies use complicated formulas to hide high interest rates applied to loans of up to more than four hundred percent. BBB researchers shared the story of Wanda, a senior in Georgia who took out a $1,000 payday loan to build her credit.

Buried behind all the fees and paperwork, his real interest rate was almost 450%. She quickly regretted the decisionreads the report, noting that these companies often take advantage of older people. “They bill you every two weeks, and that’s about $400.00 to $600.00 per month to repay such a small amountt,” Wanda said, addressing the report’s authors.

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Here’s how the Hartford Public Library and its partners plan to help the city’s most vulnerable populations https://premudraja.net/heres-how-the-hartford-public-library-and-its-partners-plan-to-help-the-citys-most-vulnerable-populations/ Fri, 02 Sep 2022 18:20:00 +0000 https://premudraja.net/heres-how-the-hartford-public-library-and-its-partners-plan-to-help-the-citys-most-vulnerable-populations/ Payday loans, pawnshops, check cashing services and other services that come with high costs, interest rates and fees often lead to the paradox that it is expensive to be poor. Those living in poverty or near the poverty line are often unbanked or underbanked, which can leave them vulnerable to other scams that perpetuate the […]]]>

Payday loans, pawnshops, check cashing services and other services that come with high costs, interest rates and fees often lead to the paradox that it is expensive to be poor.

Those living in poverty or near the poverty line are often unbanked or underbanked, which can leave them vulnerable to other scams that perpetuate the spiral of poverty.

A new program – which brings together the Hartford Public Library, Liberty Bank, the Connecticut Association for Human Services and the Cities for Financial Empowerment Fund – targets one of the most financially vulnerable populations by expanding banking opportunities for the community of immigrants and refugees from the city.

U.S. Senator Richard Blumenthal, Hartford Mayor Luke Bronin, Library President Bridget E. Quinn, and Liberty Bank Vice President of Community Development Glenn Davis were on hand at the Hartford Public Library on Friday to announce that the library has received a $487,000 federal grant to help promote and teach financial literacy to the immigrant community with the Building Social Capital: An Inclusive Approach to Immigrant Financial Immigration program.

The program will help members of the immigrant and refugee community navigate the world of financial institutions, which can be daunting for anyone.

“Immigrants may also have other specific challenges, such as fluency in English, trust issues with financial institutions or government, wondering who is trustworthy in these interactions, they may have already been subject to, perhaps, predatory lending or fees associated with other kinds of financial tools,” Quinn said. “We’re starting something new, which we hope will help communities across the country to serve this population and will strengthen our economy through the work and access this population will now have to these financial service tools.”

Blumenthal, who helped secure the grant with U.S. Senator Chris Murphy, said the grant is an investment in the community, not a cost. He also noted the important work the library does in the community.

“America has always been the land of opportunity, of equal access to uphill,” Blumenthal said. “That’s why people have come to America over the centuries. Libraries are a symbolic and practical sign of America, land of opportunity. … Libraries have been community centers, a source of learning and self-promotion.

He noted that his father immigrated to the United States in the 1930s when he was 17. Back then, Blumenthal said, the banking system was much easier to navigate.

“People today need a lot more education not only to seize opportunities… but also to avoid scams: payday loans, pawnshops, all kinds of promotions and internet promotions,” Blumenthal said. “Ultimately complicated, misleading and misleading stuff. Financial literacy has become a form of opportunity, but also a protection against some of the scams that exist. …Financial know-how is essential in today’s world to seize opportunities and avoid the pitfalls of scammers and scammers. In very difficult economic times, to ensure that consumer purchasing power keeps pace with potential price increases.

Participants in the program agree to deposit in a savings account with Liberty Bank $50 per month for five months, according to a press release. The account will be administered by the library. When the participant reaches the goal of $250, the money is transferred to an individual account in his name and he receives a match of $250, the statement said. Participants can then close the account. However, if they maintain a balance of $250 for another five months, they will receive an additional $250 from library donor funds, the statement said.

During the five months, participants meet for three hours, every two weeks, for financial education and other networking opportunities.

The program will be available to those who have been in the country for less than 10 years.

Bronin said the corresponding aspect of the program is “a powerful thing”.

“It helps solve the fact that so many residents of our community and our country in our country are unbanked,” Bronin said. “About a quarter of Americans are unbanked. You can imagine that percentage is much higher in a community where there is a concentration of poverty and in a community where there is a large immigrant community. this opportunity to connect our residents to banks, financial institutions, savings accounts and provide the educational component that goes with it is really very powerful.

American Place at the Hartford Public Library has proposed and will administer the program, which is expected to launch in the spring, Quinn said.

“This is a really essential program,” Quinn said. “We are super excited for this program.”

YMCA of Greater Hartford Receives $500,000 Grant

The YMCA of Greater Hartford also received a $500,000 grant for improvements and upgrades to its location on Albany Avenue, officials said Thursday.

Lt. Gov. Susan Bysiewicz, House Speaker Matt Ritter and State Rep. Ed Vargas touted the grant, which came from the State Bonding Commission.

“The programs and services provided by local YMCAs across our state are vital to the positive development of our young generation,” Bysiewicz said in a news release. “Children can interact with friends and have fun, learn social-emotional skills and coping mechanisms through practice and play, while being exposed to different and exciting opportunities.”

Ritter and Vargas also stressed the importance of the YMCA.

“We all recognize that the Y is a hub of enrichment programs for families and youth – the programs are essential to our community,” Ritter said.

“Summer enrichment programs are invaluable in the overall development of young people by giving them opportunities and options to learn, develop and improve the problem-solving and social interaction skills that are essential for success,” added Vargas. “I applaud the good work of the YMCA which for generations has been a cornerstone of our community and has had such a positive impact on many lives.

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