Last week was a mixed bad week for me. I paid off a few small loans (yay me!) but didn't pay attention to my checking account and ended up bouncing some transactions. Not really bouncing, as my bank pays my overdrafts, but still sticks me with NSF fees. I wasn't being vigil about my account, and it happened again. Anytime I am not vigil, this happens. All I had to do was deposit $50 in my account and there would have been no NSF fees. Jeez.
I read in the local paper not along ago some tips about making purchases. The paper has a column entitled "Ms. Cheap," and she always has some good hints about how to save money and get free items.
Quoting another writer, Mary Hunt, Ms. Cheap listed these questions to ask yourself before opening your wallet:
1) Do I need it really?
2) Could this be considered by any reasonable person to be a planned purchase?
3) Will this make my life better or add to the clutter and chaos?
4) Don't I already have something that will do just as well?
5) Do I have the cash to pay for it right now?
6) If I walk away from this purchase, how will I feel a month from now?
7) Am I willing to sleep on my decision for 48 hours?
Good advice, I think. I think I will pay particular attention to # 6 and 7.
Sunday, October 14, 2007
Military Have Special Rules Regarding Payday Loans
I am certainly not a fan of payday loans or cash advance companies. I know it is a proliferating business as in Nashville you see these companies everywhere. Maybe not in the best of neighborhoods, but literally everywhere else. They straddle almost every corner of every intersection.
I read something interesting the other day. That a law was passed in September capping the interest these companies could charge those in the military. It also legislated that these companies could not go after deployed military people in default of these loans. (My wording is not exact.)
It makes sense that the companies could not prosecute those who are deployed. They are not here. But why give them a better interest rate than everyone else? I think I read that that military people could not be charged more than 36 percent APR, whereas everyone else who uses those services are charged 385 percent APR or higher.
Why discriminate here? I think everyone should be capped at a lower rate. As I said, I am not a fan of payday loan companies. It is close to usery, if not usery. But the idea is not a bad one: Give someone a loan on their paycheck. But why does the interest have to be so outrageous? Why couldn't someone charge a more reasonable interest? I wonder if anyone would be able to start "Wal-marting" this industry? Open up a bunch of payday loans at a lower interest and make the others come down on theirs.
I read something interesting the other day. That a law was passed in September capping the interest these companies could charge those in the military. It also legislated that these companies could not go after deployed military people in default of these loans. (My wording is not exact.)
It makes sense that the companies could not prosecute those who are deployed. They are not here. But why give them a better interest rate than everyone else? I think I read that that military people could not be charged more than 36 percent APR, whereas everyone else who uses those services are charged 385 percent APR or higher.
Why discriminate here? I think everyone should be capped at a lower rate. As I said, I am not a fan of payday loan companies. It is close to usery, if not usery. But the idea is not a bad one: Give someone a loan on their paycheck. But why does the interest have to be so outrageous? Why couldn't someone charge a more reasonable interest? I wonder if anyone would be able to start "Wal-marting" this industry? Open up a bunch of payday loans at a lower interest and make the others come down on theirs.
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