"I love you when you bow in your mosque, kneel in your temple, pray in your church. For you and I are sons of one religion, and it is the spirit."Kahlil Gibran
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High Return Residual Income Is Possible, Not MLM
Face it, when you hear the term "residual income" associated with a home business or income stream, most of the time you can bet the business is MLM. You see, residual income is a buzz term used by MLMer's to distract your attention away from the ...
Structured Settlements Offer Advantages over Lump-Sum Payments
A structured settlement, which offers injury victims cash payments through a long-term annuity as compensation for their damages and medical expenses, offer a number of possible advantages over payment in a lump sum. While the lump sum payment is the ...
What is a Structured Settlement
A Structured Settlement is an agreement between a personal injury victim ( a Plaintiff ) and an Insurance company ( the Defendant ) to compensate the Plaintiff by the defendant with long term periodic payments instead of a single cash lump sum. Payments ...
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Most any large city has a number of small shops offering payday loans. They're often found in strip centers; sometimes they double as pawn shops. They have a simple business – they lend you money until your next paycheck. The system is pretty convenient; you write them a postdated check for the amount you're borrowing plus interest. On your next payday, they cash the check and your loan is paid off. What many people who use payday loan services fail to realize is that the interest rates charged by these firms are substantial, often reaching the equivalent of four hundred percent per year!
The interest rates charged by payday loan stores varies from state to state, but a rate of 15-17% for two weeks is not unusual. This translates to 390-440% per year, which is a staggering amount of interest to pay on a loan. The lenders say that these amounts are fair, and are necessary to cover the overhead associated with running a business and to account for a substantial number of borrowers who fail to repay the loans. That may be true, but that high of an interest rate can turn the “convenience” of a payday loan into a nightmare. Many borrowers are relatively low paid blue-collar workers who live from paycheck to paycheck. Someone who is a “bit short” this week may also find themselves short again on their next payday. If they fail to pay back the payday loan, the interest continues to accrue and additional penalties, such as returned check fees, may apply. It is quite common to see loans of $300 or so turn into debts of several thousand dollars, especially if the borrower compounds the problem by borrowing funds from a second payday loan store to pay the loan from the first one.
Several states have already passed laws capping the interest rates that may be charged on payday loans. Others will undoubtedly follow. A good alternative to the payday loan would be to take a cash advance on a credit card. There is usually a fee associated with a cash advance, but the annual interest rate, combined with the fee, is still a lot cheaper than a loan at 400%. Anyone who is considering taking out a payday loan should read the terms carefully. Otherwise, that “loan until payday” could be there to haunt you for a long time.
About the Author
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to debt consolidation and credit counseling, and StructuredSettlementHelp.com, a site devoted to information regarding structured settlements.
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 Father paved way for Street's debut - Denver Post
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Securities analysts an endangered species - International Herald Tribune
NEW YORK : Securities analysts are being culled in large numbers on Wall Street, and unlike in previous downturns, many of these jobs may never come back. Already, an estimated 150,000 jobs have been lost by the financial sector worldwide, and more ...
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Wall Street toll mounts - The Age
Securities analysts are being culled in large numbers on Wall Street - and unlike in previous downturns, many of these jobs may never come back. Already, an estimated 150,000 jobs have been lost by the financial sector worldwide, and more are ...
Ambac commutes $3.5 Billion in CDO exposure - Forbes
Ambac Financial Group Inc. said Wednesday it paid about $1 billion in cash to close positions in four collateralized debt obligation transactions with a combined exposure of about $3.5 billion. New York-based Ambac said the settlements would improve ...
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