Michigan funding – Blissfield http://blissfield.net/ Sun, 20 Nov 2022 22:58:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://blissfield.net/wp-content/uploads/2021/10/icon-3-120x120.png Michigan funding – Blissfield http://blissfield.net/ 32 32 NAB warns against payday loans before Christmas https://blissfield.net/nab-warns-against-payday-loans-before-christmas/ Sun, 20 Nov 2022 22:58:00 +0000 https://blissfield.net/nab-warns-against-payday-loans-before-christmas/ The NAB warns of the dangers of payday loans as more Aussies turn to ‘quick-take’ loans to meet the rising cost of living. A new NAB study released today finds that one in 10 Australians facing financial hardship have accessed a payday loan in the past three months. Payday loans were the third most common […]]]>

The NAB warns of the dangers of payday loans as more Aussies turn to ‘quick-take’ loans to meet the rising cost of living.

A new NAB study released today finds that one in 10 Australians facing financial hardship have accessed a payday loan in the past three months.

Payday loans were the third most common type of debt used to manage financial difficulties in the third quarter, behind credit cards and borrowing from friends and family (used by one in three people).

As Christmas approaches, NAB Customer Vulnerability Manager Mike Chambers has warned against using payday loans to manage the extra expenses people may face.

“Christmas can be a financially stressful time for many people and in the face of financial stress it can be tempting to try and find a quick fix to manage costs,” Chambers said.

“Payday loans can seem like an attractive option, as they are often instant and have low credit checks in place, making them more accessible to people in dire straits.

“What people don’t realize is that there are often many hidden costs associated with loans, in addition to higher interest and late payment fees.”

According to information from NAB Q3, payday loans are the most stressful of all debts for Australians (with a score of 64.2 pts), ahead of loans from family and friends (57.3 pts), personal loans (51.9 pts) and home loans (51.7 pts) . On average, Australians owed $6,200 in payday loans over the past three months.

Mr Chambers said an interest-free loan, through organizations like Good Shepherd, was a more sustainable option for people who need to finance things like basic necessities, cars or commodities whites.

NAB provides capital for Good Shepherd interest-free loans and has supported over 68,000 low-income Australians with $47 million in loans over the past 12 months.

Mr Chambers recommended customers struggling with payday loans contact their bank.

“A call to your bank is the best first step to discuss the possibility of a loan payment break, a reduced payment plan, or access to an independent financial adviser,” Chambers said.

“Our NAB Assist team recently spoke with a client who had nine different payday loans and was struggling to keep up with debt repayments. We were able to tailor a solution and are confident we can help them pass to the other side.

“No matter how bad a situation may seem, there is help available that will put you in a stronger financial position in the long run.

“About 97% of clients who contact us early when facing financial hardship recover within 90 days.”

Further information:

  • Ask for help in case of financial difficulties by NAB-Assist.
  • To access independent financial advisers, contact Debt Helpline on 1800 007 007 or moneysmart.gov.au.
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12 Dangerous Habits That Can Put You Even Deeper Into Debt https://blissfield.net/12-dangerous-habits-that-can-put-you-even-deeper-into-debt/ Fri, 18 Nov 2022 22:00:00 +0000 https://blissfield.net/12-dangerous-habits-that-can-put-you-even-deeper-into-debt/ US consumer debt is at an all-time high. According to the New York Fed Consumer Credit Panel, total household debt in the third quarter of 2022 reached $16.5 trillion. Is there a way to crush your debt once and for all? Absolutely, but it requires avoiding bad financial habits that can put you further into […]]]>

US consumer debt is at an all-time high. According to the New York Fed Consumer Credit Panel, total household debt in the third quarter of 2022 reached $16.5 trillion.

Is there a way to crush your debt once and for all? Absolutely, but it requires avoiding bad financial habits that can put you further into debt.

Here are 12 of those dangerous habits and what to do instead.

6 awesome tips every Costco shopper should know

1. Spend money to follow others

Peer pressure is enormous. You may not feel a direct command to follow others in your social circle, but it can get sneaky. If one of your friends buys a new car, you might be tempted to buy one too.

Break this habit by realizing that you bear all the consequences of your expenses. In other words, it’s not your friends who will have to clean up the debt. This job is yours and yours alone. Better to avoid it altogether by living within your means.

2. Don’t automate savings

For most people, if it’s in their main checking account, it’s up for grabs. Spending all your money is a guaranteed way to keep living paycheck to paycheck.

Instead of continuing the cycle, break it by adjusting your payroll distribution. You can send a fixed amount to your main checking account and a percentage on savings. This will ensure that you are constantly building an emergency fund and avoiding further debt.

Payday loans are often sought after in emergency situations, but they are bad business: they can have interest rates of over 600%!

Get expert tips for making more money – sent straight to your inbox.

3. Not having a coherent budget strategy

Not having a budget strategy is a dangerous habit. You don’t know how much you earn, how much you go out, or even how much you need to meet expected and unexpected expenses in life.

Once you have a budget, things that used to be “emergencies,” like car maintenance and property taxes, just become part of the budget.

4. Not Tracking Expenses

Expenses tend to creep in, making it easy to end up with “more butterflies than money,” as the old saying goes.

It’s a dangerous habit when it comes to money, because if you have no idea of ​​your expenses, you can’t really plan for unforeseen events. This puts you in a difficult position where you may have to take out expensive loans or rack up credit cards, which will push you further into debt.

Pro Tip: A lot of best budgeting apps Automatically analyze your expenses from a linked bank account to keep you up to date on your expenses.

5. Eat out every week

Checking out the best restaurants in your town is fun, but it can add up very quickly. Even the fast food groceries start piling up.

If you order weekly, that’s money wasting the ability to benefit you beyond a full belly for the evening.

A better approach is to eat within your budget, but pack lunches for work and cook most of your meals at home.

6. Pay the minimum on credit cards and loans

Paying the minimum on credit cards is a surefire way to stay in debt longer. This is because the minimum balance on credit cards is used primarily to pay interest and very little of the balance.

Pro Tip: By paying more, more of your payment goes to the original balance rather than just interest. You can also save what you need by switch to a low interest credit card.

7. Buy more house than you can afford

What you get in mortgage terms and what you can actually comfortably afford each month are often two different numbers.

As a general rule, your mortgage should not exceed 28% of your take home pay from an affordability perspective.

In some markets, this may mean a lot less house than expected. But having the cash to handle repairs, saving for unexpected expenses, and always putting aside for retirement is far more important than having the biggest house on the block.

8. Shopping for every sale

Unfortunately, the science of retail is designed to take as much money as possible. Indeed, shopping around for every sale is a dangerous habit that can put you further into debt because it encourages spending.

This means that not all chords are really chords. Even if it is a 75% sale or clearance agreement, the costs can still add up. Stay home and don’t add items to your online shopping cart either.

9. Spending too much on a car

Just like spending to keep up with others, you can also spend too much on a car. It is a purchase with guaranteed value and requires care and maintenance.

Pro Tip: Buy a reliable and affordable car when the total cost of ownership is calculated. And try these tricks to save money on car insurance.

10. Skip Car Maintenance Until It’s Too Late

That check engine light won’t go away just because you put a little duct tape on it. Unfortunately, when money is tight, it is difficult to find space for auto repairs. This is why having an emergency fund is so important.

While some small businesses now offer financing through third parties, the interest rates are not very good, which makes it even more difficult to deleverage.

Pro Tip: Set aside money for repairs throughout the year. Even if you don’t need a lot of repairs, the fund may be enough to repair your vehicle or buy a new one without stress.

11. Not monitoring your credit

If you don’t look at your credit, you are exposing yourself to fraud or even incorrect information.

Traditionally, the three major credit bureaus allowed one free credit report every year, but now consumers can check their credit report every week. This is a temporary benefit due to the ongoing COVID-19 pandemic.

This habit can push you further into debt, as your credit score has a direct impact on the interest rates you receive. The worse the score, the more you will pay for credit cards, loans and even apartments.

6 smart ways to crush your debt today

12. Let the bass devour your money

The bar can be an expensive place, with an average tab for just four glasses ranging from $80 to $100.

Add in the cost of parking or the taxi ride, plus any other bar stops you’ll make, and going out for a night on the town can put you in more debt than you think.

Entertainment is one of the biggest expense categories that can spiral out of control, but unlike rent or utilities, you can control it.

At the end of the line

Good financial habits open great doors. If you’re trying to achieve bigger goals, like buying a house or taking a better vacation, it all starts with developing good money habits and avoiding dangerous things.

Of course, that’s not the only part of the puzzle to solve. Eventually, you’ll have to manage your income, including raises, promotions, or even a side hustle.

Start by saving and investing money, and soon you will find that you have enough leeway to boost your bank account as well.

More from FinanceBuzz:

This article 12 Dangerous Habits That Can Put You Even Deeper Into Debt originally appeared on FinanceBuzz.

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Credit card balances, burden, delinquencies and collections in the third quarter: consumers are still in good shape with their cards https://blissfield.net/credit-card-balances-burden-delinquencies-and-collections-in-the-third-quarter-consumers-are-still-in-good-shape-with-their-cards/ Tue, 15 Nov 2022 23:58:46 +0000 https://blissfield.net/credit-card-balances-burden-delinquencies-and-collections-in-the-third-quarter-consumers-are-still-in-good-shape-with-their-cards/ Credit cards are primarily a payment method, paid monthly. The importance of borrowings has diminished over the years. By Wolf Richter for WOLF STREET. Credit card balances include balances that accrue interest and balances that are paid in full by the due date such that no interest accrues. Many Americans use credit cards only as […]]]>

Credit cards are primarily a payment method, paid monthly. The importance of borrowings has diminished over the years.

By Wolf Richter for WOLF STREET.

Credit card balances include balances that accrue interest and balances that are paid in full by the due date such that no interest accrues. Many Americans use credit cards only as a method of payment (and to get the 1.5% cash back or whatever), not as a method of borrowing. Thus, credit card balances are much more a measure of spending than borrowing.

Fitch estimated that the total amount paid with credit cards in the United States reached $4.6 trillion in 2021. Only a tiny fraction of the expenses were not fully repaid and added to the debt carrying interest.

In the third quarter, credit card balances rose $38 billion from the previous quarter to $930 billion, according to the New York Fed. Household debt and credit report. This $930 billion includes transactions initiated roughly in September but fully repaid in October, which do not generate interest.

Credit card spending has been boosted by the resurgence in travel, with credit cards being used as a method of payment for hotels, airline tickets, rental cars, meals, and more. Soaring costs are further increasing the amounts that pass through credit cards. But cardholders fully refunded almost all of the new amounts paid by credit card during the quarter.

Households have a lot of debt, but the problem isn’t credit cards, it’s mortgages.

In a moment, we’ll look at credit card balances as a percentage of total consumer debt and as a percentage of disposable income, and we’ll look at delinquencies and third-party collections, and we’ll see that the burden of revolving credit is not more than a small fraction of what it was in previous years and decades, and delinquencies have started to rise, but are still below pre-pandemic lows, and third-party collections have dropped to new records.

During the pandemic, plummeting reservations for airline tickets, hotels, entertainment and sports venues, restaurant meals, etc., have led to a drop in the use of credit cards as payment , and that’s where the big dip happened; it shows the collapse of expenditure on services. It is now back to normal as service spending recovers.

And yet, outstanding credit card balances in the third quarter increased by only $43 billion, showing the universal use of credit cards as a method of payment, with balances paid in full each month, and in the extent to which credit cards are used as a method of borrowing. And that makes sense because borrowing with a credit card can be ridiculously expensive, with rates as high as 30%, but paying with a credit card can earn you a kickback.

“Other” consumer loans, such as personal loans, payday loans and Buy-Now-Pay-Later (BNPL) loans, increased by $21 billion, reaching $490 billion in the third quarter . Most of them bear interest, but not all of them: for example, BNPL loans can be subsidized by the trader. These loan balances are now back to their 2003 level, despite 19 years of population growth, rising incomes and runaway inflation.

What is amazing, in fact, is how down these balances are after 20 years of population growth, income growth and inflation:

Decrease in the amount of credit card debt.

Consumers have reduced their reliance on credit card debt over the years, although credit cards have largely replaced checks and cash as payment methods. In 2021, $4.6 trillion was spent on credit cards, yet over the same period credit card balances grew by only $40 billion.

In 2003, credit card balances and other loans combined (the red and green lines in the chart above) accounted for more than 16% of total consumer debt, which also includes mortgages, auto loans and student loans. During the pandemic, this figure fell to 8%. In the third quarter, credit card balances and other consumer debt reached 8.6% of total consumer debt, roughly within the range of the pre-pandemic low in 2014.

Debt burden as a percentage of disposable income.

In 2003, credit card balances and “other” consumer debt accounted for 14% of disposable income (income from all sources minus taxes and social contributions). And then over the years it fell steadily as the burden of credit card balances and “other” consumer loan balances fell relative to disposable income. In the first quarter of 2021, it fell to an all-time low of 6% as disposable income ballooned with stimulus funds. In Q3 2022, it rose to 7.6%, roughly within the range of pre-pandemic lows:

Delinquencies increase, remain at or below pre-pandemic lows.

Stimulus funds delivered directly to consumers during the pandemic – stimulus checks, PPP loans, additional unemployment benefits, etc. – as well as the sums that consumers did not have to pay – mortgage forbearance, bans on eviction, etc. dough, and many who had fallen behind on their credit cards have caught up. Others were able to enter their credit card arrears into forbearance programs, and the outstanding balance was marked “current”.

That’s all over, and credit card balances that are becoming unpaid — 30+ days past due — have been growing all year. In the third quarter, they reached 5.2% of total balances, which is in the same range as during the pre-pandemic lows of early 2016.

“Other” consumer loans, such as personal loans, that are becoming delinquent reached 5.8% of total “other” balances and remain well below pre-pandemic lows:

Third-party collections fell to new all-time lows.

The percentage of consumers with third-party collections fell to 5.7%, the lowest on record, and down from 14.6% of all consumers following the unemployment crisis of the Great Recession.

Do you like to read WOLF STREET and want to support it? You can donate. I greatly appreciate it. Click on the mug of beer and iced tea to find out how:

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How to spot a good store credit card and a bad one https://blissfield.net/how-to-spot-a-good-store-credit-card-and-a-bad-one/ Thu, 03 Nov 2022 09:01:00 +0000 https://blissfield.net/how-to-spot-a-good-store-credit-card-and-a-bad-one/ By Jaime Hanson Store cards aren’t all bad – a good one can be used anywhere, not just in a store, and you can get a substantial discount on a major purchase. This article is reprinted with permission from NerdWallet. As the holiday shopping begins, many of us will be confronted at least once at […]]]>

By Jaime Hanson

Store cards aren’t all bad – a good one can be used anywhere, not just in a store, and you can get a substantial discount on a major purchase.

This article is reprinted with permission from NerdWallet.

As the holiday shopping begins, many of us will be confronted at least once at the store checkout: “Would you like to save 25% off your purchase today by opening a credit card?”

The specific benefit or discount may vary, but retail clerks across the country will generally follow a familiar business script, promoting their store’s card as a convenient way to fund purchases while saving you money. money. And the pressure can be strong.

“You are checking, there are 10 people behind you. In this process, what kind of information do you get?” asks Wei Zhang, senior director of the credit card program for the Consumer Financial Protection Bureau. “How long did you have to process this information?” »

To know if this is a good offer, it is useful to understand the advantages and disadvantages of store credit cards, their strengths and weaknesses, their advantages and their risks.

Read: In tough times, credit card mistakes can hurt you the most

Why You Might Want a Store Credit Card

Store credit cards tend to suffer from the same drawbacks: higher annual percentage rates than general purpose credit cards from major issuers and lower credit limits, as well as inflexible rules governing where they can be used and how rewards are redeemed. But because of these drawbacks, store credit cards are generally easier to obtain, which can help those with less than stellar credit.

“For people who don’t have a credit history, or aren’t very good, the retail store can be a place to get a card and build your credit history. But there’s a big if” , Zhang said. “They need to make payments on time. Otherwise, like with any other credit card, late payments will hurt your credit.”

In other cases, a store credit card can help you pay for a large necessary expense, with a percentage discount or through a “special financing” offer. While the latter isn’t without risk (we’ll get to that later), if you stick to the terms, you can avoid interest.

These types of savings can be especially useful at this time of year. Holiday sales hit a record $886.7 billion in 2021, according to the National Retail Federation, and early indications suggest another record performance may be ahead. Any chance of covering these costs may seem attractive.

Plus: Be Prepared for These Questions When Applying for a Credit Card

So what makes a good store credit card?

Don’t reject an initial discount right away. Even if it’s a one-time deal, a store card that gives you, say, 40% off a large, planned purchase could be a great deal. Other store cards offer value in the form of smaller but ongoing discounts: for example, free shipping or 5% off every trip to the store.

Beyond discounts, several major retailers offer store cards with rewards that rival those of general-purpose credit cards: for example, 5% cash back on in-store purchases, plus 3% cash back in everyday categories, such as food and gas.

A quality store credit card will be an open-loop product, meaning it can be used anywhere, not just in a store. You should also look for rewards that are easy to redeem and don’t expire. Cashback is ideal.

As with any credit card, pay your balance on time and in full each month if possible. If you have a balance on a store credit card, the high APR will erase the value of all rewards.

Also read: How do cash advance apps work and are they better than payday loans?

Warning signs of a bad store credit card

Here are some common red flags for store credit cards:

Read next: How to prepare for a recession if you’re struggling to pay rent, food and utilities

Take the time to think about it

In a long, busy line, you may feel like you don’t have time to carefully weigh the pros and cons of a store credit card. And you may not get the best information at the moment.

“The store clerk may not be able to fully articulate the terms and conditions,” Zhang says. After all, he adds, “they are not financial specialists”.

Even still, ask questions and read the terms of the card carefully, as you would for any major financial decision. As a rule of thumb, if you didn’t walk into the store planning to open a store credit card, you probably shouldn’t walk out with one either.

More from NerdWallet

Jaime Hanson writes for NerdWallet. Email: jhanson@nerdwallet.com.

 

(END) Dow Jones Newswire

11-03-22 0501ET

Copyright (c) 2022 Dow Jones & Company, Inc.

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Getting ‘stuck’ with payday loans https://blissfield.net/getting-stuck-with-payday-loans/ Sat, 29 Oct 2022 11:03:45 +0000 https://blissfield.net/getting-stuck-with-payday-loans/ Image courtesy of Pixabay By JESSICA LOVECourtesy of Indiana Capital Chronicle Have you ever had your car or truck stuck in the mud; and the harder you try to get out, the deeper your tires sink? I have. So, I know from experience: unless you have the luxury of waiting for things to dry, you’re […]]]>
Image courtesy of Pixabay

By JESSICA LOVE
Courtesy of Indiana Capital Chronicle

Have you ever had your car or truck stuck in the mud; and the harder you try to get out, the deeper your tires sink? I have.

So, I know from experience: unless you have the luxury of waiting for things to dry, you’re going to need some help – a push or a pull – to get unstuck.

And you’re probably going to feel a little embarrassed. I mean, technically, even if you had no intention of getting stuck, no one else was driving. Either you didn’t see the danger in front of you, or you thought it wouldn’t be so bad to go through it.

Even if you didn’t have a good way around it, or if you calculated the risk and thought you could get away with it, the fact remains that it happened and you were “at fault”. Thinking back on it, you wish you had done something other than the fix you were looking for – the one that caused your “tires to sink deep in mud and mud” (for others little blue truck fans).

Now imagine that the vehicle you are thinking of represents your family’s financial health and the process of “no longer stuck” as a result of choosing the option to solve your short-term problem yourself – instead of asking for help. or not to think of you had other options – represents a payday loan. The “solution” then becomes a bigger problem to solve than the original problem.

That’s about where the analogy ends, since muddy patches don’t have business models designed to keep you stuck like payday lenders do. It’s by locking people in more that the profits are really made, where the interest rate eventually hits 391% in Indiana. And you really need to find a solution to your solution.

This is why I often refer to the payday loan industry as one of the most subsidized markets in existence – because government and non-profit resources are so often needed to lift people out of disasters caused by payday loans.

What if it didn’t have to be like this?

One way forward is policy change. Right now, the burden is largely on Congress, and your legislative outreach will help make the Fair Credit Act for Veterans and Consumers
– to cap all personal loans at 36% – a reality. You can also ask your state legislators to impose a 36% cap. But until and even after the legislation is passed, many Hoosiers will still need a more responsible way to borrow.

What if there was another route?

What if most of the 88% of Hoosier voters polled who said they would like to see Indiana have a 36% wage rate cap — who are able to provide another way — have paved the way for a solution alternative for their employees and co-workers?

The impact, to reinforce my analogy, would be shattering for Hoosier families who lack the resources to weather a financial shock.

A specific “bypass” – previously available in only 23 counties – recently became available statewide. If you’re a business owner, or an HR representative, or just someone who wants to talk to your boss about providing a financially viable option to those in your workplace, the solution I present to you is the Community Loan Center program.

It is a small, affordable, employer-focused loan program. So what’s the problem ?

Well, as difficult as it may seem, there really isn’t. For companies registered in the program, the CLC program is offered as a benefit at no cost to the employer. Employers literally only have to: 1) confirm employment when a loan is requested and 2) set up a payroll deduction in accordance with the employee’s repayment plan. By doing so, they instantly gain employees who are less stressed and more present for their work.

Made available through non-profit organisations, this affordable 12 month loan is designed to get people into or out of debt instead of trapping them. (CLC loans can be used to repay payday loans.) The reason is simple: nonprofit providers offering this program would rather focus their resources on improving a family’s economic trajectory than on bail out from the earthquake that stems from a payday loan.

Just consider how you could bring this alternative to your workplace
— and actually help solve a co-worker’s short-term financial problem in a way that makes it manageable and gets people out of trouble without getting stuck.

Jessica Love is Executive Director of Prosperity Indiana, a statewide membership organization for individuals and organizations that strengthen Hoosier communities.

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Senator Warren will promote student debt forgiveness during his visit to Western Mass. https://blissfield.net/senator-warren-will-promote-student-debt-forgiveness-during-his-visit-to-western-mass/ Mon, 24 Oct 2022 18:15:00 +0000 https://blissfield.net/senator-warren-will-promote-student-debt-forgiveness-during-his-visit-to-western-mass/ Democratic U.S. Senator Elizabeth Warren will be in western Massachusetts on Tuesday with Congresswoman Ayanna Pressley to talk about canceling student debt. The two are touring the state with additional stops in Boston, Brockton, Worcester and Springfield to encourage those eligible for President Joe Biden’s pardon program to sign up. Announced in August, the plan […]]]>

Democratic U.S. Senator Elizabeth Warren will be in western Massachusetts on Tuesday with Congresswoman Ayanna Pressley to talk about canceling student debt. The two are touring the state with additional stops in Boston, Brockton, Worcester and Springfield to encourage those eligible for President Joe Biden’s pardon program to sign up.

Announced in August, the plan forgives $10,000 of student loan debt for individuals – and an additional $10,000 for Pell Grant recipients. US Department of Education estimates the program will cost the government $30 billion a year for the next decade. Americans currently collectively owe about $1.75 trillion in student loan debt. While a lawsuit from six Republican-controlled states stalled the plan in federal appeals court, the Biden administration has said it still intends to overturn it. Warren told WAMC why she was heading to Springfield Technical Community College on Tuesday afternoon.

WARREN: It’s really exciting. You know that President Biden has forgiven the student loan debt of approximately 43 million Americans. And that’s about 850,000 people in the Commonwealth of Massachusetts who will have some or all of their debt forgiven. So Congresswoman Pressley and I are going out to Springfield Technical Community College on Tuesday. We’ll be there at 4:45 just to rally people to make sure everyone who is eligible signs up to get their debt forgiven, and to encourage people to come out and spread the word. You know, tell your sister, tell your mother, tell your cousin, tell your neighbor, because I want to make sure everyone in the Commonwealth who is eligible for this liberation actually gets it.

WAMC: So what’s at stake here? What are people missing out on if they don’t take advantage of this program?

Well, if someone was a Pell beneficiary when they were in two-year college, four-year college, technical school, they are entitled to up to $20,000 in loan debt student canceled, disappeared, erased from the books. If they weren’t eligible for Pell, they have the right to reverse about $10,000, off the books. Now this only applies to people with incomes below $125,000. And I’m just going to be blunt here – Most people who have this debt and are going to get relief have a household income below about $75,000. But it’s an easy, easy form to go online to check it out. It’s under studentaid.gov, and it is a very simple form and you can find out right away if you are entitled to a cancellation. Fill out the form, it takes a few minutes. And here’s the best part – The cancellation is going to happen in a few weeks, and that means – I want you to think about it from a personal perspective. That means people who’ve been under that weight, that means people who couldn’t think of moving out of mom’s basement, or buying a car, couldn’t think of buying a house, for some haven’t been able to start a small business, or haven’t been able to start a family, that they can get rid of that debt and really build a more secure economic future.

Let’s talk brass thumbtacks. When you talk about the impact of student debt on American society, on the Commonwealth, what are the big numbers that are relevant here? What does this mean materially for the people of Massachusetts?

Well, what that mainly means for the people of Massachusetts, for the 850,000 who will be eligible for debt cancellation here, is that they can just stabilize themselves financially. Now, as you know, there has been no student loan repayment so far for this, it’s been two and a half years during the pandemic. But those payments are set to begin in January. And on average, they cost around $400 per month. So being able to erase or reduce your student loan debt will have a big impact month-over-month for people in the future. And that’s going to be a really big deal.

Now this legislation is just the start of an effort to address a problem that will certainly continue long after this, the impact of this is being felt. And certainly, you had your own bigger ambitions for bigger versions of this same program. What comes next for Democrats to build on this and continue to reduce student loan debt in America?

Excellent question. So let me give you the second part, because we’re also going to do that on Tuesday, and that’s the Civil Service Loan Forgiveness Program. So you might remember for anyone… Think who is in the public service. Public school teachers, firefighters, police officers, people who work for the city or county or for the state or federal government, nurses who work in nonprofit hospitals. All, under current law, were entitled to take out public service debt forgiveness. And after 10 years of payments, they get the remaining debt erased. Well, it turns out the loan officers were really bad at it, and they put people in the wrong programs, they sent them off to the wrong places that gave them the wrong information. And so a lot of people who could have gotten help didn’t. By October 31st, by Halloween, people who are in the civil service are entitled to get what is called a waiver to participate in the new civil service loan forgiveness program and have all their previous payments count towards their 10 years, and when they reach that 10-year mark, clear the remaining debt. So that’s going to help a lot of our teachers, firefighters and nurses. This is the next step. But we have more than that! Want to hear about it?

I certainly would.

Okay, from there we have to continue to reduce, obviously, student loan debt. But we also need to take a closer look at how to prevent this debt from building up again in the future. And that means we need to make college more affordable. And to do that will take a combination of our state and federal governments to provide enough support to our public colleges and universities so that no one has to shoulder crippling debt to get a technical certificate, or to to obtain a two-year degree, or to obtain a four-year degree. For me, it’s about how we think about building a future, and we’re building a future by making investments, roads and bridges. We are building a future by investing in broadband. We are building a future by investing in the education of our people and helping people prepare for a 21st century economy. As a nation, I believe we need to make these investments so that everyone who wants to get that education can get it without being burdened with student debt. That’s what’s left in the future, and that’s part of what’s on the ballot in November. So that’s what the Democrats are fighting for, and that’s why I’m fighting alongside them

I wanted to hear your opinion on the Fifth Circuit Court of Appeals ruling on the Consumer Financial Protection Bureau regarding the unconstitutionality of the funding structure. What do you think about this? I know you’ve already fought backbut I kind of want to cut to the bone here- What’s going on with the desktop?

Well, first they got the law wrong. And second, it’s really reckless. So let’s do the first. The Consumer Financial Protection Bureau is funded similarly to the Federal Reserve, which, by the way, is not the only banking regulator that is not funded by appropriations. The Office of the Comptroller of the Currency, which is the primary banking supervisory board, and the FDIC, you know, which provides this great insurance to make sure the money will be there, you know, if you have money in a current account, all are financed outside loans. And that means the Senate doesn’t vote or Congress doesn’t vote on them every year, and that’s been the case since 1863, when the first federal banking regulator was put in place. And you know, the reason was pretty obvious. And it was that basically, as one nation said, it’s not a good idea for politicians to have financial control over these banking regulatory agencies, because they’ll be under too much political pressure. That’s how it was set up from the start. There is nothing abnormal about the CFPB. But that’s part of what makes this decision so reckless. When the Fifth Circuit says, no, I’m fair, they’re just declaring the whole agency unconstitutional, they’re actually trying, I think, to try to say that all the regulations that the agency has put in place to protect people on residential mortgages and credit cards and payday loans – are they saying it just goes away? And are they saying that, at least in the Fifth Circuit, they don’t recognize the Federal Reserve Bank? They don’t recognize the banking supervisors from the Office of the Comptroller of the Currency? They don’t recognize FDIC insurance? This is just one of those opinions you just have to shake your head about how these guys are doing politics instead of doing their job and applying the law as it is written.

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How to Get a $20,000 Personal Loan – Forbes Advisor https://blissfield.net/how-to-get-a-20000-personal-loan-forbes-advisor/ Mon, 17 Oct 2022 16:48:37 +0000 https://blissfield.net/how-to-get-a-20000-personal-loan-forbes-advisor/ Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors. Whether you’re looking to renovate your home, consolidate debt, or pay for another big expense, you may be looking for a personal loan. Many lenders offer $20,000 personal loans that you can […]]]>

Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

Whether you’re looking to renovate your home, consolidate debt, or pay for another big expense, you may be looking for a personal loan. Many lenders offer $20,000 personal loans that you can use for almost any purpose; some lend up to $100,000. However, to borrow such a large sum, you may need good credit and a stable income.

Follow these five steps to get a $20,000 personal loan.

1. Consider qualification requirements

Before applying for a loan, it helps to understand the terms of the loan. Here are some factors that lenders typically consider when evaluating your $20,000 personal loan application:

  • credit history. Personal lenders review your credit history before approving you for a loan. Your credit history reveals your past and present accounts, including loans and credit cards. If you have negative ratings, a lender may consider you a subprime borrower and reject your application. You can view your credit reports for free via AnnualCreditReport.com. If you see any errors, try to dispute them before applying.
  • Credit score. A lender also considers your credit score, which is a numerical representation of your credit history. Credit scores range from 300 to 850, with good scores starting at 670. Requirements vary by lender for personal loans, with some requiring a score of 560 and others looking for 660 or higher. You can check your credit score for free with a credit monitoring service or with some credit card providers.
  • Revenue. Lenders look at your income to make sure you’ll be able to repay the loan on time and in full. When you apply, you’ll likely need to upload pay stubs, W-2 forms, or bank statements for the lender to review.
  • Debt-to-income ratio (DTI). Lenders are also concerned about your DTI ratio, or how your monthly debt compares to your monthly income. If your DTI is high, you can reduce it by paying off debt or increasing your income.
  • Collateral. Personal loans are generally unsecured, which means they do not require collateral. However, a secured, collateral-backed personal loan may be an option if you cannot qualify for an unsecured loan. Lenders often offer higher loan amounts and lower interest rates on secured loans. Some common types of collateral are your car title or a savings account. The risk of a secured loan is that you could lose your asset if you default on payment.

2. Prequalify with multiple lenders

A $20,000 personal loan is a significant sum of money, so it’s worth comparing several lenders before deciding on a loan. Many lenders allow you to check your rates online through prequalification. This allows you to view loan offers without any impact on your credit score. After providing a few personal details, you will be able to see what fares you may qualify for.

Note that prequalifying for a loan does not guarantee rates and terms. A lender will still need to review your documentation and perform a credit check. After you apply, your rates and terms may differ from what you initially saw. However, prequalifying can still give you a good idea of ​​what your rates might be and whether or not you will qualify for a $20,000 loan.

3. Compare your offers

Once you’ve researched rates from multiple lenders, take the time to compare the details of each loan offer. Use a personal loan calculator to estimate your monthly payment and long-term interest charges.

Don’t forget to consider monthly payments, interest rates and fees. Some ongoing fees include origination fees, disbursement fees and a prepayment penalty. High fees could offset the savings you get from a low interest rate.

The annual percentage rate (APR) measures both the interest rate and the fees, so it is a more inclusive rate than the interest rate alone. Focusing on the APR can therefore help you compare your loan offers on an apples-to-apples basis when looking for the most affordable.

4. Complete and submit your application

If you want to go ahead with a loan offer, complete and submit an application. The application will be more detailed than the pre-qualification form.

It will ask you for your personal details, including the amount and purpose of your loan. You will also need to upload verification documents, such as payslips or W-2s.

Finally, the lender will perform a rigorous credit check, which could temporarily reduce your credit score by a few points. As long as you make on-time payments on your loan, your score should recover within a few months.

5. Manage and repay your loan

Once you submit your application, you will wait for your $20,000 personal loan to be approved. Some lenders can approve loans in as little as one business day, while others take days or weeks.

Once your loan is approved, you will sign and submit your final loan agreement. Pay close attention to the terms of your loan, including how long you have to repay the loan and when your monthly payment is due.

The lender will deposit the loan proceeds into your bank account. Once you have the loan, you can use it to pay for home renovations, debt consolidation, or whatever else you need it for.

You’ll likely start making your monthly payment on the loan right away. Consider setting up automatic payment from your bank account to ensure you don’t miss any payments.

How to get a $20,000 loan with bad credit

Qualifying for a $20,000 loan with bad credit could be difficult. Lenders generally require good credit to borrow such a large sum.

However, every lender is different, so it’s worth shopping around to see if they’re willing to work with you. You can try checking with your bank or credit union, who may be more flexible with existing customers.

Some lenders allow you to apply with a cosigner, whose good credit might offset your limited credit and help you qualify or get better rates. You can also opt for a secured personal loan rather than an unsecured loan, which may have lower credit requirements. Make sure you don’t fall behind on your payments, though, or you risk losing your guarantee.

You can also look into peer-to-peer (P2P) lending, which is funded by individual investors rather than financial institutions and tends to have more flexible borrowing criteria. Another option for borrowers with bad credit is alternative borrower payday loans, although borrowing limits are set at $1,000 or $2,000.

If you don’t need a $20,000 personal loan right away, consider improving your credit before applying. Paying off your debts, making timely payments on your loans, and disputing errors on your credit report can all help. Reducing your credit utilization ratio, or the amount of credit you use compared to what’s available to you, can also increase your score.

Improving your credit score before you start the loan search process could make it easier to qualify and help you get better rates.

Where to get a $20,000 loan

Long term costs of a $20,000 loan

When you borrow a $20,000 personal loan, you end up paying a larger amount due to interest and fees. Your long-term costs will depend on your interest rate, fees, and repayment term. A lower rate and fewer (or no) fees can save you money, which is why comparing with multiple lenders is essential.

Opting for a shorter term can also save you money on interest, but it will mean higher monthly payments. On the other hand, a longer repayment term will seem more affordable from month to month, but will incur higher interest charges in the long run. Most lenders offer repayment terms between one and seven years.

Say, for example, you take out a $20,000 personal loan with an APR of 10%. This chart compares your monthly payment and long-term interest charges under various loan terms.

Our personal loan calculator can help you estimate your monthly payment and the cost of borrowing. When choosing a loan term, try to strike a balance between getting an affordable monthly payment and keeping interest charges to a minimum.

Compare personal loan rates from top lenders

Compare personal loan rates in 2 minutes with Credible.com

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Should you get a pet loan? – Forbes Advisor https://blissfield.net/should-you-get-a-pet-loan-forbes-advisor/ Wed, 12 Oct 2022 15:45:26 +0000 https://blissfield.net/should-you-get-a-pet-loan-forbes-advisor/ Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors. Dogs, cats and other pets bring great joy to our lives, but caring for them can be expensive. Americans spent $123.6 billion on their pets in 2021, according to the American Pet […]]]>

Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

Dogs, cats and other pets bring great joy to our lives, but caring for them can be expensive. Americans spent $123.6 billion on their pets in 2021, according to the American Pet Products Association.

From routine vet visits to medical treatments, the costs of caring for a pet can start to outrun your budget. If you can’t afford your pet’s expenses out of pocket, you might consider a pet loan, but watch out for interest charges and fees.

What is a pet loan?

A pet loan is a personal loan designed to cover pet-related expenses that you pay off over time with monthly payments. Banks, credit unions, and online lenders all offer personal loans, whether or not they can call them pet loans.

Personal loans are generally unsecured, which means that they do not require any collateral. Plus, they often come with a fixed interest rate that stays the same for the duration of your loan.

Let’s say you borrow a $4,000 pet loan with an annual percentage rate (APR) of 10%. If you choose a five-year term for your pet loan, you’ll make monthly payments of $84.99 and pay a total of $1,099 in interest charges.

It’s worth noting that personal loans can be used for just about any expense, so you don’t need to limit your search to pet loans. If you opt for a general personal loan, you can use it to cover your pet care costs.

How to apply for a pet loan

If you are interested in pet financing, here are the general steps you will need to follow.

  1. Check your credit. Since most pet loans are unsecured, a lender bases their approval decision on your credit and income. Before applying, check your credit score and review your credit report via AnnualCreditReport.com so you know what you’re working with. The better your credit, the better the rate you could get on a pet loan.
  2. Compare the prices. Every lender is different, so it’s worth checking your rates with at least three to find the best deal. Some lenders allow you to prequalify online, which means you can check your rates without impacting your credit score.
  3. Compare offers. Once you’ve received loan offers, compare them to see which is the most affordable. Consider interest rates, fees, and repayment terms to see what best fits your budget. A personal loan calculator can show you monthly payments and long-term costs.
  4. Check with your budget. Before choosing a loan, make sure that you will be able to pay the monthly payments. Falling behind on a loan can have bad consequences, including damaging your credit, so check that you can afford to repay the money before borrowing.
  5. Submit your application. If you decide to go ahead, you will submit a complete application with your personal details and all required documents, such as payslips or bank account statements. At this point, the lender will conduct a rigorous credit check, which could temporarily affect your credit score.
  6. Receive your loan funds. Some personal lenders can review and approve your application in just one day, while others take a little longer. Once your application is approved, you should receive the funds directly to your bank account.
  7. Repay your loan on a monthly basis. You will likely start making payments on your loan immediately. It’s a good idea to set up automatic payment to make sure you don’t miss any payments.

Can you get a pet loan with bad credit?

Qualifying for pet financing can be difficult if you have bad credit, but it’s not impossible. Each lender sets their own credit and income requirements. Since some lenders are more flexible than others, it’s worth shopping around to see if one will work with you.

If you have bad credit, however, you may be subject to lower loan amounts and higher interest rates than someone with strong credit. Some veterinary clinics offer pet financing options, allowing you to spread out payments over time. Financing a pet through a veterinarian may not require a credit check.

If you come across other no credit check loans from online lenders, beware of borrowing one. These are probably payday loans with exorbitant interest rates and fees. Although you may have access to funds, you could be trapped in a cycle of debt that is difficult to pay off.

Average cost to care for a pet

Pet care costs vary depending on the animal and other factors. Dogs tend to be more expensive than cats, and these two popular pets cost more than birds, reptiles, and fish.

Dogs

Dogs are both the most popular and expensive pets in the United States. The average cost of caring for a dog is $1,391 per year, including about $300 for food and $225 for routine medical visits.

Adopting your furry friend can cost an additional $1,030, including $300 for neutering or neutering and an additional $300 for medical checkups and vaccinations. Also expect additional costs such as toys, treats, dog beds, crates, and training materials.

Cats

Caring for a cat is generally less expensive than a dog. The American Society for the Prevention of Cruelty to Animals (ASPCA) puts a cat’s annual expenses at $1,149 per year, including $225 for food, $160 for medical care, and $140 for medication. preventive.

You could pay $455 when you first adopt a cat, including $150 for spaying or neutering, $175 for medical visits, and $40 for a carrier.

Birds

The average annual cost of care for a pet bird is $185, including $75 for food, $25 for toys and treats, and $85 for veterinary bills. A birdcage usually costs around $70, but you’ll likely pay more for bedding, perches, and toys.

The cost of adopting a bird can vary greatly. Some birds, like parakeets and finches, might cost just $10, while cockatoos and macaws might cost $5,000 or more.

reptiles

Reptiles typically cost between $190 and $350 per year, with lizards on the lower end of that range and iguanas on the higher end. Pet snakes can cost up to $450 per year. These costs include veterinary care, food, cages, tanks, heat lamps and other supplies.

Fish

The cost of raising fish can vary greatly. A simple bowl setup can cost just $10 to $20 with fish ranging from $3 to $12. Aquariums, however, can cost $200 or more, with saltwater aquariums and fish much more expensive than freshwater ones. Kiplinger estimates the total lifetime cost of farming the fish to be between $270 and $410.

How to Use a Pet Loan

You can use a pet loan for all expenses associated with pet care, including veterinary treatment, surgery, and other medical expenses. Financing pet bills with a pet loan can be more affordable than charging them to a credit card.

You can also borrow a pet loan to cover the costs of a service, therapy or emotional support animal. Service dogs are highly trained and adopting one can cost between $15,000 and $30,000. If you adopt an emotional support animal, you may also need to pay a visit to a doctor or therapist who can attest to your need for a therapy pet.

Other Pet Financing Options and Considerations

Apart from pet loans, you can also explore other pet financing options. As mentioned, some vets will allow their clients to spread payments over time.

There are also a number of nonprofit organizations that offer assistance, such as the American Veterinary Medical Foundation, Bow Wow Buddies, Waggle Foundation, and Magic Bullet Fund. Research national and state organizations that could help fund pets.

You can also consider a credit card, but beware of high interest charges. The CareCredit healthcare credit card offers 0% interest if you pay off your balance within 24 months, but you’ll pay deferred interest if you still have a balance after that period.

Finally, it may be worth exploring your pet insurance options, which can help cover costs. Although pet insurance does not usually cover pre-existing conditions, it can cover a significant percentage of costs that arise in the future.

Compare personal loan rates from top lenders

Compare personal loan rates in 2 minutes with Credible.com

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How to apply for a payday loan with PaydayDaze today in California. https://blissfield.net/how-to-apply-for-a-payday-loan-with-paydaydaze-today-in-california/ Sun, 09 Oct 2022 22:32:06 +0000 https://blissfield.net/how-to-apply-for-a-payday-loan-with-paydaydaze-today-in-california/ How do PaydayDaze payday loans in California work? Many California residents take out weekend payday loans from a direct lender to see them through to payday. A loan can also be called a cash advance or a $255 payday loan. The Direct Lender’s Small Dollar Loan is unsecured and available to customers with all credit […]]]>

How do PaydayDaze payday loans in California work?

Many California residents take out weekend payday loans from a direct lender to see them through to payday. A loan can also be called a cash advance or a $255 payday loan. The Direct Lender’s Small Dollar Loan is unsecured and available to customers with all credit ratings. As a result, you can avoid worrying about a co-signer or your credit score.

You can apply for a loan now without fear of a rigorous credit check. There is NO good credit score required.

How do I get out of my $255 payday loan?

In-person transactions, wire transfers, and debit card payments are all acceptable to your lender. Meeting your lender in person to make a payment should be arranged well in advance of the day the payment is due. If you decide to send money to your lender manually rather than automatically, remember that you will still be responsible for physically sending the money to them.

Automated bank withdrawals are a service that your bank can provide to you. On the due date, it will repay your lender for principal and interest. All the preparation is done in advance, so you won’t have to worry about meeting a deadline or facing the consequences if you don’t.

Without reviewing your credit history, a direct lender may give you a $255 advance the same day.

It is possible to obtain a cash advance from a lender whether or not you are currently employed. The loans are available in places like California and in Texas, where strict credit checks are not performed.

If you are a California citizen with a stable income, you can get a $255 payday loan the same day from a California direct lender, and this is true even if your credit isn’t perfect.

What do I need to do to get accepted for a $255 payday loan with PaydayDaze if I don’t have a guarantor or co-signer and no collateral?

You can apply for a $255 loan from PaydayDaze without having to worry about your credit score. Due to the low interest rate, a credit check is not required for a $255 loan. Because the amounts you borrow are so small, the payday lenders in our network do not check your credit.

We will not inquire about your credit history or contact the three major credit reporting agencies. We will treat your request in the same way as those of customers with good credit, regardless of its level.

Will PaydayDaze allow me to apply online for a $255 payday loan over the weekend?

On weekends, you can apply for a payday loan online with PaydayDaze and receive up to $255 in your account the same day. Applying for a loan 7 days a week and receiving quick approval is possible. We will contact you by phone, text or email once we have determined whether or not to grant the loan.

It may take some time for your withdrawal request to be processed if you submit it outside normal office hours, during the weekend or during a holiday week.

Even if you were approved over the weekend, the money may not be available until Monday. If you want immediate approval and the ability to cancel, apply during the week.

Can I get a $255 online payday loan through PaydayDaze same day, even if I have bad credit?

Even if you have bad credit, PaydayDaze can help you get a loan fast from a direct lender. Even if you have a bad credit history, we can help you get a $255 payday loan if you need immediate funding.

We’ll help you find a lender in your area who is licensed to provide short-term loans and who has worked with low-credit consumers. We will provide you with a safe and final authorization after establishing a solid match. To find out if you qualify for a payday loan, complete our online loan application.

Can I receive a $255 payday loan without a credit check on the same day?

A direct lender can offer you a $255 advance the same day without checking your credit history. If you need money immediately and don’t have a job, you can always get a cash advance from a lender. No credit check loans are available in several states and localities, including California and Texas.

Where can I get an online payday loan for $255?

Each state in the United States has its own payday loan laws. It’s critical to realize that not all states will have allowed payday loans by 2022. If you’re wondering if payday loans are legal in your state or how they work in your area, you’ve come to the right place. . You can find out more by researching the applicable legislation on the Internet.

Payday loans are legal in 37 of the 50 states in the United States. Alabama, Colorado, California, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Ohio, Tennessee, and Texas are among the states on this list.

Each state has its unique set of legalization restrictions. The laws governing payday loans differ significantly between the two states. As an example of a loan restriction, the total number of payday loans that can be obtained at one time is limited. Learn what they are so you can limit your financing selections to companies that meet state requirements.

How long will it take PaydayDaze to respond to my $255 payday loan request?

One of the reasons you should contact us for your loan is that we promise it will be completed in less than 90 seconds. As this is an urgent matter, rest assured that we fully understand the need to expedite the approval and processing of your request. Once you have been approved, you will be connected with a direct lender who can explain the details of the loan to you.

After approval, you can expect your payday loan to be sent to your account the next business day, at the latest. Your chances of getting a loan increase rapidly if you apply on a weekday before 9 am.

Your payday loan’s due date is the next time you get paid. Check the repayment due date against the date of the money you want to use. Payday loans often have a maturity date between two weeks and four weeks from when the borrower’s next paycheck is due.

Where can I go online to apply for a $255 payday loan with PaydayDaze?

Apply online, get the best offer, sign the contract and receive your money within 24 hours. Payday loans with immediate deposits are available today from PaydayDaze.

The first step is to submit an application through the site.

Make your request on the PaydayDaze site. To help us choose the best lender for your needs, please provide information about your job, banking, loans, and personal life.

Then look for the most affordable loan option

You should expect a response with our best loan offer within one to two hours of submitting your loan application. The next step is to discuss the terms of the offer with your lender. You have the opportunity to negotiate certain terms of the loan and find out more about its particularities from the lender.

Finally, confirm the loan agreement.

You can finally give the green light to your loan application if and only if you are completely satisfied. Please sign your loan agreement with your online lender to initiate the final processing of your loan. It is imperative that you read your contract carefully before signing it. Also keep a duplicate for your own files.

You can repay the loan whenever you want.

Your funds will be available the next business day at the earliest. Apply for a loan with PaydayDaze now for $255 to help with your immediate financial needs.

Celine Jesza Afana

Personal Finance Writer at Paydaydaze

Celine Jesza Afana is a Financial Writer at Paydaydaze, a leading online payday loan company, providing fast, easy and secure online payday loans to its customers. Céline has extensive experience working in the financial sector, with a specialization in loan management and administration. She is also proficient in customer service, client services and various payday loan industry functions. She has worked hard in the company’s efforts to help those with not-so-easy jobs and who are financially challenged get money when they need it most.

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Poll Shows Illinois Supports Interest Cap Predatory Loan Prevention Act | Illinois https://blissfield.net/poll-shows-illinois-supports-interest-cap-predatory-loan-prevention-act-illinois/ Tue, 04 Oct 2022 17:49:00 +0000 https://blissfield.net/poll-shows-illinois-supports-interest-cap-predatory-loan-prevention-act-illinois/ (The Center Square) — As lenders point to the negative effects of the Predatory Loan Prevention Act, a new poll shows Illinois backing the law. As of March 2021, payday loans in Illinois have an interest rate cap of 36%. The law provides that any loan made in excess of 36% is considered null and […]]]>

(The Center Square) — As lenders point to the negative effects of the Predatory Loan Prevention Act, a new poll shows Illinois backing the law.

As of March 2021, payday loans in Illinois have an interest rate cap of 36%. The law provides that any loan made in excess of 36% is considered null and void, and no entity has the “right to collect, attempt to collect, receive or retain principal, fees, interest or loan costs. ”

In a survey commissioned by the Woodstock Institute, 86% of respondents said they supported price caps.

Lenders had warned that low-income people would struggle to access credit. The poll says two-thirds of low-income adults have been able to borrow money since the rate cap came into effect. The survey found that using a credit card was the most common method of accessing emergency funds.

“I would borrow $500 and pay off the loans sooner. If I hadn’t, I would have ended up paying back $1,000 each time,” said Tanekia Smith of Alton, a survey respondent. “I support the 36% rate cap because I think that credit should be safe, especially for vulnerable consumers and people who are already in difficulty.

Due to the Illinois lending cap, some lenders have gone out of business. The LendNation chief said all 26 stores in Illinois were closed, calling the state “inoperable territory.” Doug Nickerson warns that the law will have a negative effect by removing loan options for people with low incomes or with bad credit.

The Online Lenders Alliance published a survey in February 2022 which it claimed showed the adverse effects of the PLPA. Woodstock Institute officials downplayed the survey, saying the population surveyed was limited to their own customers, “barely a scientific sample and a solid group of respondents.”

“I’m convinced that some of the predatory lenders have tattoos that say ‘access to bad credit’ because that’s their only real argument and they’ve been saying that for decades,” said Brent Adams, senior vice president of policies and communications in Woodstock. Institute.

Some in Illinois are looking to extend the lending rate cap nationwide.

“These lenders are offering loans that trap working-class people in an endless cycle of debt,” said U.S. Representative Chuy Garcia, D-IL and the lead sponsor of legislation to establish a national rate cap of 36% APR. “Before the passage of the Predatory Loan Prevention Act, the average APR for a payday loan in Illinois was 297 percent.”

Garcia will face Republican James Falakos and Working Class Party candidate Edward Hershey in the Nov. 8 election.

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