Pros and Cons: When a Payday Loan is Your Best Choice

Posted on Thursday 10 March 2011

There is a lot of discussion these days, both among elected officials and at the typical office water cooler, about financing through a payday loan. Certainly it has garnered high profile media attention from time to time. But the true facts of what comes with an easy cash advance often miss attention of the pols and pundits alike. Here are some points to consider:

• 100 million payday loan transactions last year

• 241 percent growth in payday loan borrowing (UK) from 2006 to 2010.

• Typical percent paid on a loan is 20 percent (when there are no rollovers, which are available but which add to the cost)

• Average borrower uses payday easy cash advance loans 3.5 times per year

The growth rate is an indication of several factors, of course. First, that economic conditions have placed millions of households in a position of depending on a single paycheque instead of two (if not without any paycheque whatsoever). Second, these same conditions have pushed many if not a majority of those households into bad credit status. This means that it is increasingly difficult for them to get loans and lines of credit, and when they do, it is more expensive to borrow money than it is for people with good credit.

Part of the growth in payday loan borrowing is also driven by the ease with which it can be done. Pre-Internet, that was done by going to a storefront location, a time-consuming process that involved standing in line, speaking with a clerk (often through bullet-proof windows), and walking away into the unfamiliar neighbourhood with a pocketful of quid.

But the modern, efficient and by far most popular method now is through an online easy cash advance. The application is done entirely from a personal computer. The time required to do it is about 15 minutes, often less. And as a service that is both convenient and safe, the money is sent electronically into the borrower’s bank account within one hour.

Today’s post is a guest post and doesn’t necessarily reflect the views of Ms. Money Savvy.

savvy @ 1:56 PM
Filed under: General Finances
15 Things Your Car Insurance Company Doesn’t Want You to Know

Posted on Wednesday 9 March 2011

I found a great article on car insurance recently.  Here are just a few of the tips.

3. Bad credit affects your insurance rate. Many customers don’t realize that car insurance rates are determined partially by their credit scores. The lower the score, the higher the premium, so if you have bad credit, get ready to pay more for your coverage, even if you have a clean driving record.

5. Rates are not set in stone. Insurance rates go up and down all the time, partially due to industry changes, but largely due to personal changes like an improved driving record or credit score. If you want to lower your score, tell your company you’re thinking of switching in the middle of your policy term. They might surprise you by re-estimating your policy and giving you a lower rate.

6. Paying in full is best. It’s likely that an insurance company will offer you some type of discount if you break your payments up over six months. But many customers don’t realize that if they pay their policies in full, they save even more since they’re avoiding administrative fees.

For more information, read the article here. What strategies have you used to save on car insurance?

savvy @ 8:00 AM
Filed under: Insurance
College Students and Credit Cards

Posted on Monday 7 March 2011

Did you know?

  • Almost one-half of all college students have accumulated more than $3,000 in credit card debt; and
  • And one in 10 graduates owes as much as $7,000.

Before accepting any credit card offer a college student may receive, it is important to know the consequences if and when it is mishandled. To help teach college students (or students approaching their college years) these important lessons, the NFCC has produced “College Credit for Life,” a nine-minute video which features young people talking about the mistakes they themselves made in college. The video also features important voices a college student may come in contact with such as: an apartment rental agent, a car salesman, and a human resources executive, all discussing the implications that the irresponsible use of credit can have as students prepare to move on from college and into the real world!

To learn more, visit http://www.nfcc.org/FinancialEducation/Credit/college_credit.cfm

savvy @ 8:00 AM
Filed under: Credit Cards
Financial Education from ING Direct

Posted on Friday 4 March 2011

Savings, interest, investments and other financial basics have proven not to be as simple as it may appear at first sight. Research by ING shows that consumers today are struggling with how and where to get relevant and easy to understand information about the most basic of financial matters.

Now ING has created a series of short video animations, which aim to help to check out these short teaser clips that ING just released to trigger interest for their animated tutorial videos:

http://www.youtube.com/watch?v=baTWnhOjztY
http://www.youtube.com/watch?v=I88PyFiIHT0
http://www.youtube.com/watch?v=EcJoGoT_p4c

The teasers point to a series of short animated videos, aimed at answering some of the most basic and universal financial questions many consumers struggle with at: www.ing.com/easierfinance.

savvy @ 8:54 PM
Filed under: General Finances