American practical navigator – Nathaniel Bowditch http://nathanielbowditch.org/ Sat, 14 May 2022 06:00:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://nathanielbowditch.org/wp-content/uploads/2021/10/icon-27.png American practical navigator – Nathaniel Bowditch http://nathanielbowditch.org/ 32 32 ‘I lied to everyone I met’: how gambling addiction took hold of women in the UK https://nathanielbowditch.org/i-lied-to-everyone-i-met-how-gambling-addiction-took-hold-of-women-in-the-uk/ Sat, 14 May 2022 06:00:00 +0000 https://nathanielbowditch.org/i-lied-to-everyone-i-met-how-gambling-addiction-took-hold-of-women-in-the-uk/ IIt was Christmas Day in 2018 that things took a turn for Bev. By his own admission, it had been “a beautiful day”. “Everything was screwed up,” she said. “There was no reason why I should have played, but in my head – in a player’s head – it was Christmas Day, so you couldn’t […]]]>

IIt was Christmas Day in 2018 that things took a turn for Bev. By his own admission, it had been “a beautiful day”. “Everything was screwed up,” she said. “There was no reason why I should have played, but in my head – in a player’s head – it was Christmas Day, so you couldn’t lose. they wouldn’t do that to you on Christmas Day.

Within 90 minutes, the 59-year-old from Newcastle had bet £5,000. “I emptied my husband’s bank account,” she says The Independent. “I even borrowed money from my daughter pretending that I had an urgent bill to pay. I lost everything – and then I overdosed.

The UK is home to one of the largest gambling markets in the world, generating a profit of £14.2 billion in 2020. Gambling has historically been classified as a problem that largely affects men, but research of GambleAware from January this year revealed that the number of women treated for gambling had doubled in five years, with up to one million women at risk of experiencing gambling-related problems. He added that this figure could not represent only a small proportion of women experiencing gambling-related harm.

Bev’s gambling problems started about 16 years ago. “I entered a contest on a popular TV website and a game pop-up appeared and I thought, ‘I’ll give it a try,'” she said. Before that, she had never acted: “It just wasn’t something that interested me. It was like throwing away money. »

After depositing £10, she quickly won £800. “I couldn’t believe the money belonged to me,” she says. “I then started depositing more and more and that £800 disappeared very quickly. After that I was hooked.”

An early victory was also ‘the hook’ that kept Stacey, 29, from Derbyshire, back for more at the start of her gambling addiction. Her poison was slots and scratch cards. “It’s fast and completely mind-numbing to watch the wheels turn,” she says.



For women, gambling is an escape from overwhelming responsibilities and anxieties

The numbing effect of gambling is a big draw for many women who gamble, experts say. Liz Karter MBE, a leading British female gambling addiction therapist, says the forgetfulness offered by gambling can provide a space away from the stresses of everyday life. “You rarely hear women talk about loving the buzz or the excitement of the game, or loving the kudos that winning gives them like a lot of men do,” she says. The Independent.

“For women, gambling is about getting lost in an experience where, ultimately, they don’t think or feel anything. The focus on gambling is a distraction from stressful thoughts and feelings. It’s an escape from responsibility. and crushing anxieties.

It’s a familiar story to Tracey, 58, from Berkshire. “My game was never about the money,” she says. “It filled the void. When I was playing, I didn’t care about anything… the game took me out of my reality.

For Bev, things had started to fall apart long before that fateful Christmas and got worse over the years. As the head of household finances, she had easy access to money, but unbeknownst to those close to her, she had used up all her credit cards and taken out loans to pay them off, which went straight into her gambling funds. She also borrowed money from friends, family and even people from work. “I lied to everyone I met,” she said. “I was in a terrible place mentally.

“My husband and I both make good salaries and I often waited until midnight on payday when the money came into my account each month. My husband was sleeping in his bed and within hours I was had screwed it all up.

All of the women spoke of the “ease” of online gambling and its 24-hour availability. Tracey describes the Internet as “the crack of the game”. She says, “When I started playing, places opened and closed. I might have been the first in and the last out, but there was still a closing time.



We have gambling in our homes, offices and purses…it’s everywhere

Before going online, Stacey had traveled between different bookmakers in an effort to avoid drawing attention to her gambling problem. Online, however, things were very different. “It was so easy. Nobody knew what I was doing.

Karter draws a direct link between an increase in gambling among women and its growing ubiquity. “We have gambling in our homes, our offices and our purses,” she says. “However, we need to look at any addiction in a social and mental health context. We are seeing an increase in stress, depression and anxiety in women leading to gambling self-medication…it is all too easy to get lost in the virtual world of online gambling.

“I don’t want anyone to feel as alone as I do”

(Getty Images/iStockphoto)

The three women found the support they needed through a women-only residential retreat with Gordon Moody, which is part of a network of organizations within the National Gambling Treatment Service that offer a range of treatments. “I went into it as a broken woman, but left feeling like there was hope,” Bev says. “They gave us the tools and strategies to stop you right before you placed a bet. It’s brilliant. Something just clicked and it worked.

Stacey admits she was initially ‘extremely skeptical’ about the service’s ability to help her, but describes it as ‘the best thing I’ve ever done’.

While all three women describe themselves as on the mend from the game, some of the aftermath is harder to forget.

“Payday loans, credit cards — my debt was huge,” says Stacey. “I was moving house to house and living with friends because I couldn’t go anywhere with my bad credit. This is a long-term game issue that I’m still working on – it’s going to be a long time before I can get a house.



One of the worst things that happened when I tried to stop playing was when companies messaged you as a ‘VIP customer’ and said, ‘We haven’t seen you in a while – here’s £200 on your account”.

Bev would like to see major reforms in the gambling industry. “One of the worst things that happened when I tried to quit gambling was when companies messaged you as a ‘VIP customer’ and said, ‘We haven’t seen you in a while – here’s 200 £ in your account”. It was so bad.

“I also think they should do checks on new account holders, like when you apply for a loan,” she adds. “The number of times I’ve deposited thousands of pounds in a very short time…they must have realized I had a problem, but they encouraged it all the more.”

A government white paper addressing these issues is long overdue and is expected to be released this month. MP Carolyn Harris, chair of the all-party Parliamentary Gambling Harm Group, called the need for affordability checks, spending caps and independent assessments on new users “overwhelming”.

Stacey, Bev and Tracey all want more people to understand that this is a devastating condition that can and does affect women – but that help is available.

“It’s so important to reach out and talk to someone,” Tracey says. “No matter where you are from or how old you are – you will never be alone.”

Stacey agrees. “I don’t want anyone to feel as alone as I do. If you can get past the shame, there are so many places to go that specifically help women where you won’t be judged. Taking that first step is scary, but so worth it. There is hope.”

For information, support and advice on problem gambling, contact:

Gordon Moody (gordonmoody.org.uk), Aware of the bet (begambleaware.org), Gamblers Anonymous, which hosts a number of “female-favorite” online and real-life get-togethers (gamblersanonymous.org.uk), BetKnowMore (betknowmoreuk.org) and GamCare (www.gamcare.org.uk).

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Legislation to create a new type of loan for low-income borrowers draws criticism https://nathanielbowditch.org/legislation-to-create-a-new-type-of-loan-for-low-income-borrowers-draws-criticism/ Wed, 27 Apr 2022 20:25:45 +0000 https://nathanielbowditch.org/legislation-to-create-a-new-type-of-loan-for-low-income-borrowers-draws-criticism/ State Sen. Rick Ward, R-Port Allen, has proposed creating the “Access to Credit Loan,” a new type of financial product for Louisiana, aimed at borrowers who cannot qualify for a bank loan. . Ward says the loan could be a lifeline for borrowers facing an immediate financial emergency who don’t want to take out a […]]]>

State Sen. Rick Ward, R-Port Allen, has proposed creating the “Access to Credit Loan,” a new type of financial product for Louisiana, aimed at borrowers who cannot qualify for a bank loan. .

Ward says the loan could be a lifeline for borrowers facing an immediate financial emergency who don’t want to take out a payday loan, although critics say the high interest and fees allowed would allow lenders to take advantage of people having few options.

“We don’t need a whole new class of loans that will increase costs for Louisiana citizens,” said Troy McCullen, former president of the Louisiana Cash Advance Association.

When introducing his bill, Ward said loans of up to $1,500 could benefit someone who, say, has flat tires and needs money fast to replace them so they don’t lose. his job. No matter how long it takes to repay the loan, the borrower will never have to repay more than double what was originally borrowed, Ward says.

But critics question Ward’s interpretation of the bill’s wording, saying the cost could exceed 100% of the principal, and the need for the monthly ‘maintenance fee’ of up to 13% that the legislation would allow with up to 36% interest and a $50 origination fee.

“One hundred percent interest is still bad enough,” Jessica Sharon, assistant vice president of financial outreach at Pelican State Credit Union, said during a committee hearing.

Senate Bill 381 passed the Senate and House Commerce Committee.

“They’re accelerating this thing,” McCullen says.

Daily reportI emailed Ward today offering an opportunity to comment, but did not hear back in time for this report.

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The 3 Best Installment Loan Apps to Get You Started https://nathanielbowditch.org/the-3-best-installment-loan-apps-to-get-you-started/ Mon, 25 Apr 2022 15:24:58 +0000 https://nathanielbowditch.org/the-3-best-installment-loan-apps-to-get-you-started/ Lending apps are gradually replacing traditional loan agencies or credit unions. Today, traditional lending institutions struggle to keep up with the convenience and transparent processes of these apps. Moreover, these applications and online lenders accept applicants regardless of their credit history. However, identifying trustworthy installment loan applications can be difficult. There are many lending companies […]]]>


Lending apps are gradually replacing traditional loan agencies or credit unions. Today, traditional lending institutions struggle to keep up with the convenience and transparent processes of these apps. Moreover, these applications and online lenders accept applicants regardless of their credit history.

However, identifying trustworthy installment loan applications can be difficult. There are many lending companies in this industry, and while some offer good service, others are opportunistic and deceptive.

Accordingly, we have listed the top three installment loan apps that can help you get started on the right foot. Let’s dive!

The 3 best installment loan apps to get you started

1. Heart Paydays

Heart Payday is a popular loan app in the United States. This site offers all of its loan services online and saves you the hassle of in-store loan applications. You can complete the entire application process in five minutes or less.

They offer various loan services, such as loans for bad credit guaranteed approval $5000which can help you meet your emergency needs.

This application has a user-friendly interface, and practically anyone can easily maneuver it easily. The site is notorious for accepting applicants rejected by other lenders, as its eligibility thresholds are relatively lower than those

in most credit institutions. For example, they accept people with bad credit, the unemployed, and those receiving government benefits.

Typically, Heart Payday loans come with APRs ranging from 5.99% to 35.99%.

Advantages

  • There is no paperwork involved
  • Same day payment
  • Easy application process

The inconvenients

2. Viva Payday Loans

Another great option for a payout when you’re short on cash is the Viva Payday Loan app. The site offers no-collateral loans within hours of completing your application.

Viva Payday Loan has partnered with direct lenders who can meet your loan needs as quickly as possible. Moreover, these direct lenders offer different loan amounts.

Viva Loans does not perform intensive credit checks when evaluating loan applications, and even people with bad credit scores can get loans with them. Other groups, such as the unemployed and recipients of government support programs, can also apply for Viva Payday loans.

Their payday APRs range from 5.99% to 35.99%. This is mainly because every direct lender they partner with imposes their rates. One of their main drawbacks is that their services are not accessible in all states.

Advantages

  • Same day payments
  • The simple and fast application process
  • Flexible loan amounts from $200 to $5,000

The inconvenients

  • Viva Loan services are not available in all US states

3. Credit Clock

Credit Clock Loan is considered best for quick loan approvals. They offer their customers a range of loan products, such as bad credit payday loans, personal loans, emergency loans, and more.

It is the ideal lender if you are in urgent and urgent need of money fast because their fast loan approval process and fast repayment period can save you time.

They offer loans to people with bad credit and even those who receive government benefits. However, you must meet their minimum requirements; you must be over 18, prove you earn at least $1,000, and be a US citizen. In some cases, you may need to prove that you are employed by submitting your payslip.

Advantages

  • Fast application process
  • Same day payments
  • People with poor credit history are also allowed to apply

the inconvenients

  • Only people earning $1,000 or more can apply for the loans

Conclusion

Knowing that you have a loan option within reach of your phone can be an amazing feeling. We often find ourselves in difficult situations, and going through the process of applying for a loan in store can be time consuming to try to finance an emergency. Therefore, having loan applications can make our lives much easier.

However, it also exposes us to great temptations. Unlike the traditional loan system, where you have time to think before taking out a loan, the new app option gives you the luxury of completing a loan application with just a few clicks. Some people, especially spendthrifts, might end up in cycles of debt.

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In times of soaring inflation, how much auto loan should you take out? https://nathanielbowditch.org/in-times-of-soaring-inflation-how-much-auto-loan-should-you-take-out/ Sun, 24 Apr 2022 12:07:52 +0000 https://nathanielbowditch.org/in-times-of-soaring-inflation-how-much-auto-loan-should-you-take-out/ Breadcrumb Links MoneyWise Canada To borrow money Owning a car can be convenient, but also expensive Author of the article: MoneyWise Dina Al Shibeeb Dean Drobot/Shutterstock Content of the article On average, a car is the second most expensive purchase Canadians will make. A key part of budgeting for one is to consider more than […]]]>

Owning a car can be convenient, but also expensive

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On average, a car is the second most expensive purchase Canadians will make. A key part of budgeting for one is to consider more than the initial price of the vehicle.

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After all, MNP’s 2022 Consumer Debt Index report finds that less than a quarter of Canadians are confident they could handle an unexpected car repair without taking on more debt.

To avoid falling into this trap, keep these tips in mind.

Cover fixed expenses first

Olivier Boyd, licensed insolvency trustee at MNP, believes that fixed expenses should be prioritized.

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“You should be able to make ends meet and make sure all your other fixed expenses are covered,” Boyd advised. “Anything above that, then you’re entering territory where you’ll probably have to sacrifice something else,” he added.

In addition to using common sense, general wisdom says that people should budget 10-20% of their gross salary for their vehicle each year.

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For example, someone earning $30,000 a year probably shouldn’t budget more than $400 a month after deductions and taxes, and factoring in insurance, Boyd explained.

While this “rule of thumb” may apply everywhere, it could change in urban settings where housing costs could represent up to 50 or 60% of a person’s income. This situation would make buying a car a less sensible option, Boyd said.

This sentiment is echoed by Brian P. Doyle, chairman and co-founder of Doyle Salewski Inc. Doyle describes himself as a “pessimist” as he expects a lingering “major recession”. People who live in urban areas with improved public transportation would be better off getting rid of car expenses when possible, Doyle says.

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Budget for unforeseen expenses

Getting a car loan also means considering interest rates and credit scores, and the impact these cumulative expenses will have on your budget.

Doyle also stresses the importance of leaving some money aside for unforeseen expenses in case the “wheels come loose.” This emergency stash is highly recommended for people with older cars that will likely require maintenance.

Car owners should also be aware of how much money they have set aside for unexpected health care costs, as car expenses can eat away at this reserve.

“These (incidents) are a part of life and people don’t budget for them, so they don’t have the cushion,” Doyle said. “They often budget themselves down to, you know, the smallest amounts.”

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Avoid predatory interest rates

While interest rates of six to eight percent are reasonable for auto loans, any higher amount would put the buyer in the “risky category or second tier loan, the most common term we hear,” a Boyd said.

Equifax Canada’s 2022 Market Pulse Quarterly Credit Trends report found non-bank auto delinquencies increased 14.7% in the last quarter of 2021 (compared to the same period a year earlier). That means more people struggled to repay their auto loans.

Many independent dealerships or lenders will be happy to provide financing for vehicles that could cause users to have bad credit. Potential car buyers can avoid this trap and look into banking programs that cater to people who “clean up their act” and take charge of their debt.

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Read your documents carefully

Although the general advice is to get a car loan from a reputable dealer – who will most likely work with a credible financial institution – Doyle said people should be aware of hidden costs that can swell over time.

“There are a lot (car dealerships) that are still reputable, but there are some that are predatory, and that’s why people have to be careful,” Doyle warned, citing some payday loans as an example.

“We see this often in our practice,” Doyle added. “We get people paying 45%, 50%. They pay penalties. They take out a $500 loan and now they have to pay back $5,000.

Doyle also urged people to carefully review their documents, whether from a reputable lender or not, to avoid hidden or unexpected costs.

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“Is it going to be the interest rate? Will it be the penalties? Application fee ? Are you getting less for your trade than the true market value? Are you paying more for your new vehicle? »

Set your financial limits early

Doyle recalls an incident in 2006 when he wanted to buy a Mini Cooper as a present for his wife’s birthday. The monthly charge was $400. However, the bank at the time wanted to debit his bank account with any amount it deemed reasonable.

“I said no.’ They can charge me the loan amount, which was $400,” he said. “I’m not going to give them that right.

You can also avoid surprises by asking “so if I miss a payment, what happens?” For example, there are layaway plans where a buyer won’t have to pay interest for a year. However, once a payment is missed, the buyer will be liable for high interest on their remaining payments.

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Beware of negative equity

When asked what makes people unable to repay their loans, Boyd pointed to a common factor: “When negative equity is passed through.”

Negative equity what happens when people buy a new car but haven’t paid off their previous vehicle. The driver then often finds himself in default, since he is paying for two cars.

“So a car worth $15,000 or $20,000 might have a loan of $25,000 or $30,000 because the previous vehicles still have up to $10,000 in payments,” he said. Boyd.

Having a manageable loan means knowing your limits.

Deloitte’s 2021 Global Automotive Consumer Study showed that 35% of Canadians don’t research their car financing at all. Research and budget, if you want to avoid being a statistic yourself.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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For recruitment and retention, some Minnesota companies are turning to same-day payment https://nathanielbowditch.org/for-recruitment-and-retention-some-minnesota-companies-are-turning-to-same-day-payment/ Fri, 22 Apr 2022 14:59:49 +0000 https://nathanielbowditch.org/for-recruitment-and-retention-some-minnesota-companies-are-turning-to-same-day-payment/ In 2020, “stimulus check” and “second stimulus check” were among the top 15 Google searches in the United States. That same year, a Ernst and Young report estimated that in the countries of the Organization for Economic Co-operation and Development (OECD), around $1 trillion in workers’ wages lie dormant in employers’ coffers every day. “It’s […]]]>

In 2020, “stimulus check” and “second stimulus check” were among the top 15 Google searches in the United States.

That same year, a Ernst and Young report estimated that in the countries of the Organization for Economic Co-operation and Development (OECD), around $1 trillion in workers’ wages lie dormant in employers’ coffers every day.

“It’s basically been an interest-free loan from an employee to an employer,” said Aaron Fuchs, commercial vice president of Ceridian, a Bloomington-based human capital management firm. To laypersons, that means “it’s a software company and the software it provides is inherently HR-centric,” Fuchs said.

Stimulus checks were a way out. Ceridian is part of a growing industry that is disrupting “payday”.

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In her role, Fuchs oversees Dayforce Wallet, one of several mobile apps on the market offering same-day payment. Also known as earned pay access, pay-on-demand, or real-time pay, the service allows employees to access their pay from their personal devices right after their shift. work.

Aaron Fuchs

Employee expectations have changed: 83% of American workers aged 18-44 believe they should have access to their pay at the end of each workday, according to a 2021 survey by The Harris Poll.

“Technology has caught up with and redefined so many other places in (people’s) lives,” Fuchs said, “They recognize that payroll is an area that really hasn’t changed since the 1980s.”

The company launched Dayforce Wallet in May 2020, expanding to Canada last year. Fuchs said it closed 2021 with nearly 1,000 customers, including large companies such as Danone and local businesses such as Lunds & Byerlys.

Since Ceridian rolled out its program during COVID to customers most in need of attracting new workers: retail, healthcare, manufacturing and hospitality.

Be competitive in the labor market

In the middle of unemployment rate and a pandemic where many public-facing workers resigned en masse, employers needed creative solutions to retain and recruit employees.

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“We really wanted to leverage (same-day pay) and offer it to our people as a way to continue to differentiate ourselves in the workplace,” said Casey Enevoldsen, vice president of employee experience at Lunds. & Byerlys. “We see that the labor force continues to decline in its growth. It just means there will be fewer and fewer people available to do the work that employers are really looking to do, so we’ve been really focused on retention while trying to attract new talent.

Many employees say getting paid sooner is a key aspect of their financial well-being. Part of their strategy has been to look at a wide range of attractive measures to retain and attract new talent, including adding telehealth to various part-time and full-time positions in retail, manufacturing and support.

Enevoldsen said adding same-day payment was an easy transition because Ceridian already manages its payroll and offered the benefit at no cost to the grocer and its employees. Under this system, individuals directly deposit their paychecks into Dayforce Wallet from which they can choose to have their funds deposited to a mobile wallet or physical debit card.

Jeanniey Walden

Jeanniey Walden

Launched in 2016, DailyPay is associated with a number of fast food franchises, as well as companies such as Mall of America and Target. (The New York-based company opened its only other U.S. office in Minneapolis for operations and customer service in 2019.)

DailyPay marketing manager Jeanniey Walden said the frequency of payments had been delayed by the introduction of payroll tax in 1943. With businesses traditionally operating their own payroll systems, it was becoming cumbersome and more expensive to perform calculations for the numbers behind an employee’s paycheque. She said there were three information systems behind them: time and attendance, pay rate, and benefits like health care, dental, 401k, and wage garnishments. Financial services companies like DailyPay extract this information from employers and automate all these processes so that workers can see in real time how much they earn and in turn access that salary.

A third party audit data from DailyPay revealed that employee turnover was reduced by 42% thanks to DailyPay.

With the financial stress of the past few years, same-day payment has been key to competing with the gig economy and supporting workers on tight budgets.

“Most of the time when (people with multiple jobs are) asked, ‘why do you work for me here? and do DoorDash?’ It’s not because they don’t make enough money here. It’s like, ‘well, I need $50 this week because I have to make the deposit on my daughter’s braces’ or whatever,” Walden said.

Most non-farm workers in the United States are paid bi-weekly (every two weeks), according to a February 2020 snapshot of the Survey of current employment statistics by the US Bureau of Labor Statistics. About a quarter are paid monthly or fortnightly.

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Overcome financial precariousness

Keziah Vulu works part-time at Lunds & Byerlys. She accessed her pay the same day only once. Intrigued by the novelty, she ordered food.

“I like that it’s there, but I don’t like it when my (bi-weekly) checks are short,” Vulu said.

She instead expressed relief for the company’s January switch to weekly pay. Employees can withdraw their pay for the day from the app, with the pay being deducted from their weekly check.

“(With the move to weekly pay), I was able to budget and get what I wanted. It seemed harder to save when I was paid bi-weekly and easier to overspend,” Vulu said.

Several employees noted the same – either never using same day payroll or rarely using it.

“If we had stayed on a biweekly (schedule), I would have been more inclined to personally jump on that bandwagon. But with the weekly, it works. It’s good enough for me,” said operations supervisor Nina Urman.

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Sara Cramer trains the employee support teams at DailyPay and also accesses same day payroll on occasion. Being paid bi-weekly, she said easy access to wages provides peace of mind around payday.

“That (need) date isn’t your whole life,” said Cramer, who said the service was more helpful in helping him understand his daily gross earnings.

The data confirms this. More recently, academic research has explored the impact of payment frequency on worker behavior. A 2019 paper cited by the Bureau of Labor Statistics found that a causal relationship between frequent payments and household spending reads to help navigate personal finances. Earlier in April, the Consumer Research Journal published an article by business professors Wendy de la Rosa and Stephanie M. Tully and noted that “higher payment frequencies reduce consumer uncertainty about whether they will have enough resources throughout a period.”

But in addition to allaying potential worries, financial services companies say same-day payment eliminates the need for payday loans, credit cards and other traps people fall into when they run out of money. money.

“DailyPay is used to complement and connect in really unique and different ways,” Walden said.

One example she noted: “As gas prices soared, many people who, again, normally had enough money, ran out of gas to physically get to work… They had no way to get to work if they didn’t use DailyPay to get gas for their car for the next two days to get them through to payday until their check pay arrives.

According to the Consumer Financial Protection Bureau, “Before the COVID-19 pandemic, consumers consistently paid more late fees on their credit cards each year, peaking at more than $14 billion in 2019. late fees assessed by issuers have declined to approximately $12 billion. in 2020 given record payout rates and public and private relief efforts. Even during the pandemic, late fees accounted for more than a tenth of the $120 billion consumers pay each year in interest and credit card fees. In 2021, late fees have increased again.

In March, a coalition of 19 lawyers urged the Consumer Financial Protection Bureau for ensure that lenders who buy now and pay later do not engage in practices that trap consumers in a cycle of indebtedness In a letter, they expressed concern that the industry has seen “rapid and exponential growth” during the COVID-19 pandemic.

DailyPay says 88% of users credit the app with reducing or eliminating their use of payday loans, and an average of $292 is saved each year among people who incur overdraft fees, per a partnership report.

Urman said the same-day pay benefit provides peace of mind and a good safety net.

“I know if your car breaks down or an unexpected bill comes in, or even a vacation, that sort of thing, it’s really good for people to be able to do something right away without adding credit card debt or borrow money like payday loans where they get hit with a lot of interest,” Urman said. “It can be huge. So even though for me it might not be a weekly need or monthly, it’s good to know that if something happens, you have some sort of backup system where you don’t have to put yourself in an extra bad position.

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Types of bad credit loans and their uses https://nathanielbowditch.org/types-of-bad-credit-loans-and-their-uses/ Thu, 14 Apr 2022 21:07:05 +0000 https://nathanielbowditch.org/types-of-bad-credit-loans-and-their-uses/ If you have bad credit and need cash fast, you may not realize that you may still have loans you qualify for. A loan for bad credit could be an option if you have been refused by your bank or credit union and borrowing from relatives or friends is not an option. There are several […]]]>

If you have bad credit and need cash fast, you may not realize that you may still have loans you qualify for. A loan for bad credit could be an option if you have been refused by your bank or credit union and borrowing from relatives or friends is not an option.

There are several types of bad credit loans to choose from. They often come with high interest rates that could cost you several hundred or thousands of dollars more over the life of the loan. It is therefore worth exhausting all your options and exploring other alternatives before applying for a loan for bad credit. However, if you’re in trouble, a bad credit loan might be what you need.

What is a bad credit loan?

Bad credit loans are designed for consumers with low credit ratings who cannot be approved for financing elsewhere. You can expect higher interest rates and fees with these loans because the risk of default is higher.

The FICO scoring model, which 90% of lenders and creditors use to make a loan decision, ranges from 300 to 850. Lenders who offer bad credit loans typically target consumers in these FICO score ranges:

  • Bad credit: 300 to 579
  • Fair credit: 580 to 669

Although these loans are expensive for borrowers, the advantage is that you can get the money you need to meet an unexpected expense or financial emergency. Additionally, some lenders offer a simplified application process and same-day or next-day financing.

Secured loans

Secured loans are for consumers whose credit is not perfect, but require some form of collateral to be approved. Title loans and home equity loans are popular secured loan options, but you risk losing your car or home if you fail to repay the loan.

Still, they might work if you haven’t found better options elsewhere and don’t anticipate any problems repaying the loan on time.

Before applying for a secured loan, research several lenders that offer title and home equity loans to determine if you meet their eligibility criteria. You’ll probably have better luck with a title loan if your credit score is in the trenches, but you may qualify for a home equity loan from some lenders.

Loans without credit check

As the name suggests, these loan products do not require a credit check to be approved. They are attractive to borrowers with very low credit ratings who have been turned down for other loan products, but come with high interest rates to compensate for the risk they pose to the lender. As a result, you could get a monthly payment that doesn’t quite fit your budget and find yourself in even more financial trouble over time.

Some lenders will extend the loan term on these loan products to give you a lower, more attractive monthly payment. However, this simply means that you will pay more interest over the term of the loan, as the lender will have more time to collect the interest from you.

Common loans without a credit check include payday loans, installment loans, auto title loans, and cosigner loans.

Payday loans

Payday loans offer a short-term solution for borrowers in credit difficulty. These loans usually come with exorbitant interest rates, sometimes well into the triple digits, and capped at around $500.

Most payday lenders won’t check your credit to qualify for a loan, and you could get the loan proceeds within hours. Nevertheless, payday loans should only be used as a last resort, as the cost of borrowing is high. Plus, you’ll usually have to pay back what you borrow before the next payday or face high fees if you extend the term of the loan. This could lead to a vicious cycle that is difficult to escape.

Cash advances

A cash advance allows you to withdraw funds from your credit card‘s available balance up to the preset limit established by your credit card issuer. The amount you borrow is added to your outstanding credit card balance. You will likely pay a higher interest rate than on regular credit card purchases.

Cash advances are usually made by withdrawing cash from an ATM. You can also request a cash advance from a cashier at the physical branch of the credit card issuer (if applicable).

If possible, use cash advances only in times of financial emergency. Although they offer a quick fix if you’re in financial difficulty, they can be expensive and keep you in credit card debt for an extended period of time.

Banking agreements

Some banks offer short-term loans for smaller amounts to account holders with a positive banking history. However, the qualification criteria differ depending on the financial institution. You should therefore contact your bank or credit union to determine if this option is viable for you.

Alternatives to Bad Loans

Although bad credit loans are designed to help consumers who have difficulty accessing finance, they can be expensive and predatory in some cases. If you are facing a financial emergency or unexpected expenses, here are some viable alternatives:

  • Asking a relative or friend for money. Be sure to write out a repayment plan that works for both parties to avoid problems later.
  • Use a credit card. If you have available credit on a credit card, the cost of reading it is likely much less than what you’ll pay if you take out a bad credit loan. However, you want to pay back what you spend as soon as possible to avoid spending a fortune on interest.
  • Find local help. Some communities have religious and nonprofit organizations that offer financial assistance to those experiencing financial crisis.

Most importantly, work on building your emergency fund and improving your credit. That way, you might not have to borrow money the next time life comes around. Plus, you’ll potentially qualify for loan options with better terms and more competitive interest rates if you don’t have enough savings to cover a financial emergency should it arise.

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‘Payday lender’ rate cap hurts borrowers with bad credit https://nathanielbowditch.org/payday-lender-rate-cap-hurts-borrowers-with-bad-credit/ Tue, 05 Apr 2022 17:00:00 +0000 https://nathanielbowditch.org/payday-lender-rate-cap-hurts-borrowers-with-bad-credit/ As for Rep. Will Guzzardi’s letter to the editor on payday lenders, it’s one thing to report success, it’s another to have data to back it up. Guzzardi is right to say that it is expensive to be poor in America. In Illinois, it’s even harder, as tens of thousands of consumers with or without […]]]>

As for Rep. Will Guzzardi’s letter to the editor on payday lenders, it’s one thing to report success, it’s another to have data to back it up.

Guzzardi is right to say that it is expensive to be poor in America. In Illinois, it’s even harder, as tens of thousands of consumers with or without subprime credit no longer have access to any form of regulated, reliable lending.

Guzzardi says 46 new businesses are now giving installment loans at rates at or below 36%, and some lenders are offering interest rates as low as 6%, depending on the borrower’s credit.

What he doesn’t acknowledge is that the new law prevented 28% to 36% of Illinois — more than a third of the adult population — from qualifying for that 6%. In fact, they cannot claim any small dollar loan to any interest rate.

While it is impressive to see an almost 70% increase in consumer loan applications with a non-profit creditor, this data is incomplete without seeing how many of these new loan applications were declined because consumers did not don’t have the creditworthiness to qualify.

SEND LETTERS TO: letters@suntimes.com. We want to hear from our readers. To be considered for publication, letters must include your full name, neighborhood or hometown, and a phone number for verification purposes. Letters should be a maximum of approximately 350 words.

The American Financial Services Association includes traditional installment lenders that are regulated by both Illinois and federal agencies, and offer safe, ethical, and transparent loans with fixed terms and no lump sum payments, hidden fees, or penalties for prepayment. Unlike payday lenders, our member companies offer subprime or non-credit customers the opportunity to improve their credit rating, as our member companies report to credit reporting agencies.

The AFSA said there is no room in the consumer credit industry for predatory lending practices. We also believe that every American consumer deserves access to some form of credit, especially when needed. Unfortunately, Illinois’ Rate Cap Act, by driving responsible lenders out of the state, has cut off access to credit and deepened economic inequality for people who are not privileged enough to have more money. credit options.

Danielle Fagre Arlowe, Senior Vice President, AFSA

ShotSpotter always a bad idea

One Sunday afternoon, we were called three times to a hospital trauma room to tend to another gunshot victim. The rampant gun violence epidemic has led cities to seek different solutions, such as ShotSpotter, a sound detection system that alerts local law enforcement to the location of a suspected gunshot. However, this is not an effective solution.

Following the 2021 murder of 13-year-old Adam Toledo, who was shot by a deployed police officer via a ShotSpotter notification, ShotSpotter released adeclarationclaiming that its technology “is a vital tool for law enforcement.” In reality, ShotSpotter wastespolice resources. theMacArthur Justice Centerfound that “89% of ShotSpotter deployments in Chicago revealed no gun crime”. Yet Chicago haswideneda multi-million dollar contract with ShotSpotter until 2023.

ShotSpotter also encourages excessive surveillance in communities of color. Areportof the Chicago Inspector General’s Office found that ShotSpotter “rarely produced[s] documented evidence of a gun-related crime” and led officers to perform more “stops and frisks” in black and brown communities. The report said the implementation of ShotSpotter changed the how police interact with citizens near ShotSpotter alerts, and these effects may influence ShotSpotter’s algorithm because the algorithm relies on information from police reports.

Any ER doctor or trauma surgeon on the South Side can attest that Chicago is experiencing a crisis of gun violence. But ShotSpotter technology is inherently reactionary, only alerting after a gun has supposedly been fired. The solution does not simply lie in short-sighted and racialized policing.

Public health policy should guide the city’s response to gun violence.

Meredith Hollender, first-year medical student
V. Ram Krishnamoorthi, MD

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A research project aims to understand predatory lending in Salinas. | News https://nathanielbowditch.org/a-research-project-aims-to-understand-predatory-lending-in-salinas-news/ Thu, 31 Mar 2022 07:00:00 +0000 https://nathanielbowditch.org/a-research-project-aims-to-understand-predatory-lending-in-salinas-news/ Unforeseen circumstances – a sudden illness or an eviction notice – can put low-income families in a difficult situation: getting the money they need to stay afloat in the short term, but risk falling into the clutches of predatory lenders. According to experts, the people who are trapped in these bad debt loans are mostly […]]]>

Unforeseen circumstances – a sudden illness or an eviction notice – can put low-income families in a difficult situation: getting the money they need to stay afloat in the short term, but risk falling into the clutches of predatory lenders.

According to experts, the people who are trapped in these bad debt loans are mostly minorities, undocumented immigrants, often have no (or bad) credit history or lack financial knowledge.

Beginning March 14, United Way Monterey County and CSU Monterey Bay began conducting loan service surveys in Salinas, specifically in ZIP Codes 93905 and 93906.

Their project is based on local research in Santa Cruz conducted by Mamás con Más, Santa Cruz Community Ventures, and the UC Santa Cruz Blum Center in 2018. The research showed that 76% of lenders in Watsonville were very high interest. Since Watsonville and Salinas share similar demographics, United Way and CSUMB want to determine the impact of predatory lending on local residents. United Way staff members Josh Madfis, vice president of community investments, and Socorro Bernal, director of community impact, say annual interest rates are very high, making it difficult for customers to pay off their debt , which impacts their credit score and risks losing their assets, such as a car title.

“Interest rates are ridiculously expensive,” Bernal says.

Lender Oportun currently offers cash loans at a rate of 36% in Salinas.

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Join us in helping reach our goal of 500 new insiders by March 31. 2500 of your neighbors and pay the amount that suits you best today. Every little bit counts, and together we can make a positive impact in and for Monterey County.

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JOIN NOW

Patrick Redo, CEO of allU.S. Credit Union in Salinas notes that the matter has gone to Congress, seeking regulation on so-called payday lenders, but says more action is needed.

“There are no regulations as to what rates they can charge, so they can get away with almost anything,” Redo says.

In all of the United States, by comparison, the highest interest rate for a personal loan is 18%. Redo says some people prefer rogue lending institutions because the process of getting a loan requires less documentation and smaller amounts are available; most large institutions do not grant loans below $25,000.

Mayra Perez, a Salinas resident who lives in the 93905 zip code, says that last year she borrowed $5,000 — in her husband’s name, because she wasn’t working — from Oportun, for the send to his father who was ill in Mexico. A few months later, she had to move. She and her husband borrowed an additional $9,000 to pay rent and post their bond. Perez and her husband paid at least $200 a month. But over the past nine months, statements show that only between $16.33 and $95.58 was spent on principal, and the rest on interest. In March, they owed $8,353.22.

“[Lenders] help you, but they are abusive,” Perez says in Spanish.

Madfis says they already have anecdotal evidence of stories like Perez’s, and now they want to collect data. He hopes the research will help spur changes, such as the introduction of an interest rate limit in the city, so that people can access capital without entering “an endless cycle of poverty and indebtedness”.

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P2P Loans vs Payday Loans https://nathanielbowditch.org/p2p-loans-vs-payday-loans/ Fri, 25 Mar 2022 16:24:58 +0000 https://nathanielbowditch.org/p2p-loans-vs-payday-loans/ The cost of living is rising and more of us will likely be looking for consumer credit solutions in the near future. There are a number of options available to consumer borrowers, from overdraft facilities to credit cards. But for some borrowers, a personal loan may be the most appropriate choice. Despite the departure of […]]]>

The cost of living is rising and more of us will likely be looking for consumer credit solutions in the near future.

There are a number of options available to consumer borrowers, from overdraft facilities to credit cards. But for some borrowers, a personal loan may be the most appropriate choice.

Despite the departure of leading consumer lenders such as Zopa and Lending Works, there are still a number of peer-to-peer lending platforms offering personal loans to borrowers. However, P2P loans are often confused with payday loans – short-term, low-value personal loans that are designed to help people make ends meet while they wait for their next paycheck.

Read more: Sourced Capital prepares £12m loan pipeline for P2P investors

There are many differences between P2P loans and payday loans. The main difference is that P2P loans are funded by retail investors, while payday loans are usually funded directly by the payday lender.

Payday lenders tend to target low-income borrowers by offering smaller loans of £100 or less, while P2P consumer lenders offer larger loans with longer repayment terms. P2P lenders also tend to perform more rigorous credit checks than payday lenders, which means P2P loans may not be available to borrowers with bad credit histories. This means that default rates are generally lower with P2P loans and the collection process is less aggressive.

But the most significant difference is the cost of loans. P2P lending aims to provide affordable financing solutions to borrowers, so that investors funding the loans have the best chance of receiving their principal and interest. Payday lenders make most of their money from the astronomical penalties and interest rates that kick in once a loan goes into default.

Take a look at the examples below to see how much a £1,000 loan through a P2P loan would cost compared to a payday loan. We used three representative examples for each type of lender, and all figures were correct at the time of publication.

How much does it cost to take out a £1000 loan from a P2P lender?

elves market

Elfin Market offers personal financing through Elfin Purse; an online credit card funded by P2P investors.

All withdrawals from the Elfin Purse are subject to a representative APR of 5.8%. This means that a loan of £1,000 from Elfin Market would ultimately cost £58.87.

The loan jump

Leap Lending specializes in consumer loans between £500 and £15,000, which can be repaid over a two-year period with a representative APR of 15.48% (all fees included).

A £1,000 loan paid off over two years would cost £157.76.

How much does it cost to take out a £1000 loan from a payday lender?

Treasury

This popular payday lender offers same day loans between £300 and £2,500 with a representative APR of 611.74%.

A loan of £1,000 repaid over three months would cost £1,530.40 in interest alone.

loan pig

Loanpig personal loans are due for repayment within two to 12 months and come with a maximum fixed APR of 292%. A £1,000 loan repaid over three months would cost £521.72 in interest payments.

QuidMarket Loans

QuidMarket offers same-day payment for short-term loans up to £1,500. The lender has capped its APR at 1,625.5%, but currently advertises a representative APR of 1,296.5% for loans repaid within three months. This means that a £1,000 loan would cost £514.58 in interest payments.

Read more: JustUs raises interest rates for investors

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More low-income Canadians took out installment loans during the pandemic — and faced interest rates of up to 60% https://nathanielbowditch.org/more-low-income-canadians-took-out-installment-loans-during-the-pandemic-and-faced-interest-rates-of-up-to-60/ Thu, 24 Mar 2022 10:02:05 +0000 https://nathanielbowditch.org/more-low-income-canadians-took-out-installment-loans-during-the-pandemic-and-faced-interest-rates-of-up-to-60/ A new report highlights the impact high-cost loans have had on low-income borrowers during the pandemic, citing examples of people falling into ‘vicious cycles of debt’ as they struggle to cover the rising cost of bills . The report released Thursday by ACORN, which advocates for low- and middle-income Canadians, comes as the non-profit group […]]]>

A new report highlights the impact high-cost loans have had on low-income borrowers during the pandemic, citing examples of people falling into ‘vicious cycles of debt’ as they struggle to cover the rising cost of bills .

The report released Thursday by ACORN, which advocates for low- and middle-income Canadians, comes as the non-profit group renews its call for the federal government to lower the legal limit on interest rates on installment loans. at 30%, down from 60 percent.

The survey of 113 ACORN members who turned to high-cost lenders such as Money Mart, Easy Financial and Cash Money revealed that a high proportion turned to payday loans, short term and smaller with extremely high annual interest rates.

But many have also taken out installment loans – which are repaid in installments over a longer period – borrowing $1,500 to $15,000 at annual interest rates of up to 60%.

“This should be a priority and the government should act on it, and fast,” said Donna Borden, ACORN leader and predatory lending spokesperson.

Borden noted that 46% of survey respondents said they had taken out installment loans of up to $15,000, an increase from before the pandemic and a trend she called “alarming.”

“The government is committed to cracking down on predatory lenders by lowering the criminal interest rate,” Adrienne Vaupshas, ​​the finance minister’s press secretary, said in an email on Wednesday.

She said further details of a consultation process on the matter will be available “in due course”.

To improve access to financial services, ACORN is also calling on the government to require traditional banks to offer more low-cost borrowing options to individuals and to reduce the fees charged when customers do not have sufficient funds to hedge a transaction.

Laura Pellacani, who took part in the ACORN poll, had to take out a $2,500 loan just before the pandemic hit to cover the cost of flights back to Canada for her children, who were overseas with their father. Due to the high interest on the loan, she said she would have to spend around $6,000 to pay it off over five years.

“I had no options with the banks,” she told The Star in an interview, explaining that due to bad credit she couldn’t get a bank loan or a credit card. .

Pellacani, who receives ODSP benefits, used to earn extra income as a dog walker, but the job dried up when COVID-19 hit and her clients were all home with their pets of company.

She was only able to pay off $500 of her debt and regularly uses payday loans to cover her bills. Even with a monthly food bank delivery, Pellacani said she struggled to pay for groceries as the cost of food rose.

Often forced to borrow a little more each month, she compares payday loans to a cycle that doesn’t stop.

“Payday loans target poor people who are struggling in day-to-day life and living paycheck to paycheck,” she said.

Payday loans are regulated by provincial governments and lenders are exempt even from the 60% limit on interest. In Ontario, for example, where payday lenders can charge $15 in interest for every $100 over a two-week period, annual interest rates can reach 390%.

In a December mandate letter, Prime Minister Justin Trudeau asked Finance Minister Chrystia Freeland to “ccrack down on predatory lenders by lowering the criminal interest rate.”

The Consumer Finance Association of Canada, which represents lenders such as Money Mart, Cash Money and Cash 4 You, said in an emailed statement that the reduction in the legal interest rate could actually hurt some borrowers. cutting off all access to funding.

Installment loans are high risk and expensive to provide, the CCFA said, noting that a borrower’s credit rating is a key factor in determining the interest rate charged on such loans.

“Any reduction in the maximum federal interest rate will result in the removal of access to credit for Canadians with lower credit scores who previously qualified at the current rate,” the CCFA said. “The federal government should take no action that would deny credit to Canadians or force borrowers to access credit from illegal, unlicensed lenders.

Easy Financial, a publicly traded company that does not offer payday loans but does offer other types of alternative credit, said in a recent financial report that 8.2 million Canadians have “unpreferred” credit scores. » below 720, which means that many of them cannot access credit from banks or traditional lenders.

He estimates that these Canadians, whom he calls his “target market,” collectively have a credit balance of $186 billion.

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