´╗┐ Associate Money: February 2010 - Saving Money and Money Mangement Blog

Thursday, February 25, 2010

Saving Money Tip - Prep With A Purpose



A saving money tip by Metalsmith & Artist, DeAnna Cochran of www.deannacochranjewelry.com

Sunday, February 14, 2010

Don't Fall Prey To Predatory Lending

There are lots of people who prey on the poor - they bear gifts in your darkest moments but are actually piling on your woes.

Don't Fall Prey To Predatory Lending
I saw this graphic on Mint.com (click to enlarge) which gave good examples of predatory lending. These companies make their profits by charging fees that seem reasonable but turn out to be insane.

Do you know payday loans can hit you with as much as 360% interest per year? No wonder it has been deemed as loan sharking in 13 states.

Rent-To-Own arrangements which can range from furniture, gadgets, housing, etc. may sound sensible (why not pay a bit more to take up equity) but the reality is that you end up paying about two times more than the item costs.

That is when you factor in the insurance, weekly payments, sales tax, etc. and if you can't afford to pay the loan, they are helpful enough to offer you payday loans with a 531% APR.

Last but not least, credit cards which claim to help people "re-establish" their credit. I too am flabbergasted by how credit card companies give you a $250 starting limit and almost whittled it down to zero with their hidden charges (program fee, annual fee, set-up fee, monthly service fee, over the limit fee, etc.)

Evey one of such schemes only serve to push you further into debts. The truth is there is no short cut to becoming debt-free. Clearing debts is a step-by-step process which require you to be disciplined, make sacrifices and live modestly.

If any company tell you that you can maintain the same lifestyle while getting your finances in order, that is bullsh*t and probably a scam.

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