Comments on: Students Make $100 Financial Mistake: Very Alarming! http://www.coyoteblog.com/coyote_blog/2008/10/students-make-1.html Dispatches from a Small Business Fri, 19 Mar 2010 17:53:00 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Lisa P http://www.coyoteblog.com/coyote_blog/2008/10/students-make-1.html/comment-page-1#comment-14206 Lisa P Mon, 10 Nov 2008 10:20:19 +0000 http://www.warrenmeyer.net/coyote_blog/2008/10/students-make-1.html#comment-14206 <p>After the long day months of the campaign about the presidential election of the long run candidacy of the Obama Presidential election let see and watch what will happened next.<br /> The election is over and America has appointed a new leader. The people have chosen “change” by electing Barack Obama for the next President of the United States. Whether the United States changes for the better or for the worse, there is no doubt that change is in store for our country. It’s clear that Americans believe Obama will bring a positive change to our country. We’ve heard many of the promises he has made to the U.S. from lowering taxes for the middle class to putting a timeline on the war in Iraq and trimming the federal budget “line by line.” However, Obama also supports the elimination of the payday loan industry. He believes that eradicating the payday loan industry will protect low-income and families in general from falling victims to predatory lenders. On higher ground, it will be a violation to our financial freedom if the option to utilize affordable payday loans is wiped out. Threatening our rights to financial freedom is not a great start to creating positive change. <br /> Click to read more on <a href="http://personalmoneystore.com/moneyblog/2008/11/06/obama-to-bring-change-how-will-payday-loans-change/" rel="nofollow">Payday Loans</a><br /> </p> After the long day months of the campaign about the presidential election of the long run candidacy of the Obama Presidential election let see and watch what will happened next.
The election is over and America has appointed a new leader. The people have chosen “change” by electing Barack Obama for the next President of the United States. Whether the United States changes for the better or for the worse, there is no doubt that change is in store for our country. It’s clear that Americans believe Obama will bring a positive change to our country. We’ve heard many of the promises he has made to the U.S. from lowering taxes for the middle class to putting a timeline on the war in Iraq and trimming the federal budget “line by line.” However, Obama also supports the elimination of the payday loan industry. He believes that eradicating the payday loan industry will protect low-income and families in general from falling victims to predatory lenders. On higher ground, it will be a violation to our financial freedom if the option to utilize affordable payday loans is wiped out. Threatening our rights to financial freedom is not a great start to creating positive change.
Click to read more on Payday Loans

]]> By: [shameless self-promoter] http://www.coyoteblog.com/coyote_blog/2008/10/students-make-1.html/comment-page-1#comment-14205 [shameless self-promoter] Sat, 25 Oct 2008 12:15:49 +0000 http://www.warrenmeyer.net/coyote_blog/2008/10/students-make-1.html#comment-14205 <p>though some critisize [businesses in my industry] i find them very helpful. even if your not in dire need of [my product] it is nice to have just a little extra. [my business] is a great company, and on average they are even 40% cheaper than the competition. they offer great [products] that most other [competitors] wouldnt even think of offering to their customers.</p> though some critisize [businesses in my industry] i find them very helpful. even if your not in dire need of [my product] it is nice to have just a little extra. [my business] is a great company, and on average they are even 40% cheaper than the competition. they offer great [products] that most other [competitors] wouldnt even think of offering to their customers.

]]> By: David Z http://www.coyoteblog.com/coyote_blog/2008/10/students-make-1.html/comment-page-1#comment-14204 David Z Thu, 23 Oct 2008 15:25:18 +0000 http://www.warrenmeyer.net/coyote_blog/2008/10/students-make-1.html#comment-14204 <p>Another thing to think about with payday loans, is, what is the opportunity cost of *not* taking one? If, as a result of not taking a payday loan, you overdraft your checking account by $100, the bank will charge you somewhere between $30 and $40. If, as a result of not taking a payday loan, you miss your credit card payment date, *BAM* you're assessed a late fee on the order of $30 minimum, and usually sent into a penalty rate that is in the neighborhood of 28%+</p> <p>I've gotten burned by both of these in the past. I have never taken a payday loan, but I understand that there are circumstances where it's unequivocally preferable to the alternative(s).</p> Another thing to think about with payday loans, is, what is the opportunity cost of *not* taking one? If, as a result of not taking a payday loan, you overdraft your checking account by $100, the bank will charge you somewhere between $30 and $40. If, as a result of not taking a payday loan, you miss your credit card payment date, *BAM* you’re assessed a late fee on the order of $30 minimum, and usually sent into a penalty rate that is in the neighborhood of 28%+

I’ve gotten burned by both of these in the past. I have never taken a payday loan, but I understand that there are circumstances where it’s unequivocally preferable to the alternative(s).

]]> By: payday loans http://www.coyoteblog.com/coyote_blog/2008/10/students-make-1.html/comment-page-1#comment-14203 payday loans Thu, 23 Oct 2008 14:26:15 +0000 http://www.warrenmeyer.net/coyote_blog/2008/10/students-make-1.html#comment-14203 <p> though some critisize <a href="http://www.checkcity.com" rel="nofollow"> payday loans</a> i find them very helpful. even if your not in dire need of money it is nice to have just a little extra. check city is a great company, and on average they are even 40% cheaper than the competition. they offer great paydown plans that most other lenders wouldnt even think of offering to their customers.</p> though some critisize payday loans i find them very helpful. even if your not in dire need of money it is nice to have just a little extra. check city is a great company, and on average they are even 40% cheaper than the competition. they offer great paydown plans that most other lenders wouldnt even think of offering to their customers.

]]> By: Craig http://www.coyoteblog.com/coyote_blog/2008/10/students-make-1.html/comment-page-1#comment-14202 Craig Thu, 23 Oct 2008 01:14:17 +0000 http://www.warrenmeyer.net/coyote_blog/2008/10/students-make-1.html#comment-14202 <p>Usury laws and "consumer-protection" regulation of credit sales led to the growth of the truly predatory rent-to-own chains. Local merchants were replaced with national chains charging as much as 100% annual interest. More unintended consequences.</p> Usury laws and “consumer-protection” regulation of credit sales led to the growth of the truly predatory rent-to-own chains. Local merchants were replaced with national chains charging as much as 100% annual interest. More unintended consequences.

]]> By: dave smith http://www.coyoteblog.com/coyote_blog/2008/10/students-make-1.html/comment-page-1#comment-14201 dave smith Wed, 22 Oct 2008 23:24:13 +0000 http://www.warrenmeyer.net/coyote_blog/2008/10/students-make-1.html#comment-14201 <p>Brian, you are Effing funny.</p> <p>Made my day.</p> Brian, you are Effing funny.

Made my day.

]]> By: Dr. T http://www.coyoteblog.com/coyote_blog/2008/10/students-make-1.html/comment-page-1#comment-14200 Dr. T Wed, 22 Oct 2008 22:55:57 +0000 http://www.warrenmeyer.net/coyote_blog/2008/10/students-make-1.html#comment-14200 <blockquote>Let's say you take out $40 each week from an ATM to keep you liquid and that the ATM fee is $1.50. You are therefore spending $1.50 or 3.75% for a one week liquidity boost of $40, which you must again refresh next week. Annualized, you are effectively paying 195%...</blockquote> In the example given, you pay $78 a year for the privilege of withdrawing $2,080 of your money in $40 weekly increments. This scenario is not analgous to borrowing money for short periods at high interest rates. <p>Banks, at present, do not serve the very short-term borrower. They could do so by charging a high annual interest rate <i>and</i> a loan processing fee. Someone could borrow $500 for two weeks at 12% annual interest and a $75 fee. The total cost of the loan to the borrower would $100. Small local banks might do well with this, and I believe this would be legal in most states.</p>

Let’s say you take out $40 each week from an ATM to keep you liquid and that the ATM fee is $1.50. You are therefore spending $1.50 or 3.75% for a one week liquidity boost of $40, which you must again refresh next week. Annualized, you are effectively paying 195%…

In the example given, you pay $78 a year for the privilege of withdrawing $2,080 of your money in $40 weekly increments. This scenario is not analgous to borrowing money for short periods at high interest rates.

Banks, at present, do not serve the very short-term borrower. They could do so by charging a high annual interest rate and a loan processing fee. Someone could borrow $500 for two weeks at 12% annual interest and a $75 fee. The total cost of the loan to the borrower would $100. Small local banks might do well with this, and I believe this would be legal in most states.

]]> By: Payday loan http://www.coyoteblog.com/coyote_blog/2008/10/students-make-1.html/comment-page-1#comment-14199 Payday loan Wed, 22 Oct 2008 21:55:42 +0000 http://www.warrenmeyer.net/coyote_blog/2008/10/students-make-1.html#comment-14199 <p>The charges on <a href="http://www.checkcity.com" rel="nofollow"> Payday loans</a> are less expensive than bouncing a check or paying late fees. It's also a great option for someone who doesn't want to get caught up with credit cards debts. They can also help in a tight situation, its quick, and most places are open longer hours than banks. </p> The charges on Payday loans are less expensive than bouncing a check or paying late fees. It’s also a great option for someone who doesn’t want to get caught up with credit cards debts. They can also help in a tight situation, its quick, and most places are open longer hours than banks.

]]> By: nicole http://www.coyoteblog.com/coyote_blog/2008/10/students-make-1.html/comment-page-1#comment-14198 nicole Wed, 22 Oct 2008 19:19:37 +0000 http://www.warrenmeyer.net/coyote_blog/2008/10/students-make-1.html#comment-14198 <p>This seems especially stupid to me, given that I was much more likely to need the use of something like this as a student than at any other time. I'm sure I am not the only one who has spent approximately the first two weeks of a semester waiting on a student loan or scholarship check to arrive and/or clear, with zero other recourse. And I went to uni abroad, where any check drawn on a US bank would have taken 30 business days to clear--but sometimes you need groceries sooner than that. Liquidity is very valuable.</p> This seems especially stupid to me, given that I was much more likely to need the use of something like this as a student than at any other time. I’m sure I am not the only one who has spent approximately the first two weeks of a semester waiting on a student loan or scholarship check to arrive and/or clear, with zero other recourse. And I went to uni abroad, where any check drawn on a US bank would have taken 30 business days to clear–but sometimes you need groceries sooner than that. Liquidity is very valuable.

]]> By: Brian http://www.coyoteblog.com/coyote_blog/2008/10/students-make-1.html/comment-page-1#comment-14197 Brian Wed, 22 Oct 2008 19:19:01 +0000 http://www.warrenmeyer.net/coyote_blog/2008/10/students-make-1.html#comment-14197 <p><a href="http://www.bloomberg.com/apps/news?pid=20601087&sid=a7waFYSdmhXo&refer=home" rel="nofollow">Maybe the Federal Reserve will consider getting into the payday loan business.</a></p> Maybe the Federal Reserve will consider getting into the payday loan business.

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