Payday Loans – Payday Loans For Livet Tue, 21 Jun 2022 21:00:14 +0000 en-US hourly 1 Payday Loans – Payday Loans For Livet 32 32 I Got a Public Service Loan Forgiveness, Now What? Tue, 21 Jun 2022 21:00:14 +0000

The past few months have brought some pretty catchy headlines and trends when it comes to our collective finances. These days, you can’t get far without running into a burning issue near and dear to many of us: student loan forgiveness. Earlier in the year, the U.S. Department of Education released Public Service Forgiveness Loan figures that revealed 70,000 borrowers were eligible for nearly $5 billion in student loan relief, and other estimates predicted that up to 550,000 people could benefit, in total. If you’re qualified and your loans have been forgiven, it might be tempting to run out of cash and spend that wad of cash (hey, a splurge here or there might be in order), but if you’re looking to be smart with your money, my conversation with Mark Reyes, Senior Director of Financial Advisory at Albert, a financial services technology company might be helpful to you, as he has some good suggestions.

Reyes says less than 5% who qualified and applied received student loan forgiveness and for them to get it there were criteria that had to occur to stay in good standing. “ The service is designed [for people working in] jobs that are not high paying and have an impact,” he says. “Loan forgiveness helps relieve them of the economic burden of their student loans.”

Mindfulness of the basis of loan forgiveness is crucial. Above all, you must remain qualified for this forgiveness. It’s important to remember that the landscape of personal student loan forgiveness has changed significantly over the past few years, according to Reyes. This means that you will need to stay informed and ensure that you are fully aware of what needs to be done to qualify and possibly receive this loan forgiveness. Typically, this includes re-certification, providing the correct documentation, and making consistent payments while waiting for your loan to be forgiven.

Here are some additional tips:

GW: Should borrowers do anything from a tax standpoint?

MR: Yes. If you are receiving student loan forgiveness, make sure you have a clear picture that provides an accurate understanding of any tax liabilities you may be responsible for. Keep in mind that under the American Rescue Act of 2021, the amount of student debt that is forgiven will not be federally taxed until the end of 2025, but some states may still consider it income. taxable. If you plan to receive the pardon after 2025, stay alert to any changes to how the pardon will be handled by the IRS and be prepared for that.

GW: Tell us about paying off toxic debt.

MR: What is toxic debt? Also called toxic loans or bad debts, toxic debts are less likely to be repaid to a lender. If you have high-interest credit card debt or other forms of toxic debt like a payday loan, it’s time to detox by making it a priority to pay off those debts as soon as possible. Toxic debt is very expensive to maintain and can prevent you from achieving greater financial goals.

GW: What can people do about planning their emergency fund?

MR: It’s important to start prioritizing financial wellness and having an emergency fund saved up of 3-6 months of non-discretionary spending is a mainstay of that. An easy way to accomplish this task is to automate your savings, so that a percentage of your paycheck is automatically deposited into a savings account. I highly recommend it.

GW: A lot of people are reluctant to set a budget. Do you have any advice?

MR: Budget doesn’t have to be a dirty word. In fact, a healthy budget is the backbone of financial well-being, according to Reyes. If you’re not sure where to start, it’s probably best to keep it very simple. Reyes generally recommends what’s called a “50/20/30 budget.” This is where 50% goes to essential expenses such as rent, insurance, essentials and food, 20% goes to savings and investing, while 30% goes to everything you desire.

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GW: So can we call that 30% the You Only Live Once (YOLO) bucket? How many YOLOs can we make?

MR: This YOLO bucket is crucial for your enjoyment of life. It’s for whatever you want. If you stay in the 30%, it doesn’t matter what you do with it as long as you can stick to that 30%. You don’t have to YOLO every night. You can YOLO some.

GW: What about investing for retirement?

MR: Paying yourself first is crucial, as is paying yourself in the future. Retirement, that distant light at the end of the proverbial tunnel, will come knocking sooner than most of us realize, and the financial news surrounding our prospects for group retirement isn’t always great. Once you have a sound financial foundation (no toxic debt, a solid emergency fund, some wiggle room in your budget/no overspending), start investing for your retirement. Generally speaking, a good goal is to contribute 10-15% of your income, but if you can maximize your retirement account, [that’s] better.

GW: Thank you for your time.

What is a home loan and how does it work? Tue, 14 Jun 2022 14:07:06 +0000

Car title loans are designed for people who need cash fast. They offer a short-term loan using your vehicle title as collateral. Some lenders don’t do credit checks and may not even require proof of employment or income, making auto title loans easy to access, even for consumers with troubled credit histories.

But like many other loans available to consumers with bad credit, the appeal of these cash loans is overshadowed by their high costs and severe consequences if you can’t repay what you owe. Here’s what you need to know about how title loans work and the pros and cons of using them.

How Securities Lending Works

A title loan provides short-term financing for borrowers who own their car or own a significant portion of it. Lenders use your vehicle title – a document that proves you own your car – as collateral for the loan and usually require payment within 15 or 30 days.

Lenders can offer title loans online or through a physical location. You will fill out a file to apply. If you are not already in a physical store, you will need to visit one to present your car.

You’ll also need to provide a clear title – although some lenders don’t even require this – photo ID, proof of insurance, and any other documents the specific lender might need. You may also need to give the lender a second set of car keys. That said, you will keep your car during the reimbursement process.

If you are unable to repay the debt on time, you may have the option of turning your existing title loan into a new one, but this will only add more interest and fees. If you end up defaulting, the lender can seize your vehicle and sell it to recover what you owe.

Since title loans can have very high interest rates, they are not allowed in all states. In some they are completely prohibited, and in others there are interest rate caps. In some states, however, there are no regulations.

How much can you borrow?

You can usually borrow between 25% and 50% of the value of your car. Loans can range from $100 to $10,000, depending on the lender. You’ll pay what you owe in person, online or by direct debit from your checking account.

How much do title loans cost?

With such a short repayment term, car title loans are an expensive form of credit, and even the best car title loans can charge three-digit annual percentage rates, which include interest and fees.

“Title loans often come with a host of additional costs, including processing, documentation and loan origination, totaling hundreds of dollars,” says Lyle Solomon, senior counsel at Oak View Law Group, which provides debt relief services. “The purchase and payment of a vehicle roadside assistance package may also be required in some cases.”

For example, let’s say you borrow $800 and the finance charge is 25% of the loan amount, or $200. If the loan is due within 30 days, your APR is around 304%. That’s way more than you’ll pay even with some bad credit personal loans.

“Title loans often fall into the category that many lenders consider predatory lending,” says James Garvey, CEO and co-founder of Self Lender, which offers credit lending.

Do title loans affect your credit?

Generally, title loans do not impact your credit score because there is usually no credit check when you apply. Also, lenders probably won’t report your payment to the credit bureaus, and if you default, the lender will usually repossess your car and sell it instead of sending your debt to a collection agency.

The fact that title loans don’t affect your credit can be a good thing or a bad thing. If your credit history is already bad, that won’t stop you from getting a title loan. Also, missing a payment probably won’t hurt your score any further. On the other hand, making payments on time will also not help your credit score.

Advantages and disadvantages of title loans

As with any financial product, there are usually pros and cons. However, the disadvantages of predatory loans like these usually far outweigh the advantages. Here’s what you should consider:


  • Easy qualification. Even if your credit is bad, you can get approved as long as you hold the title to your car, have enough capital, and your income meets the lender’s requirements.
  • Simple approval process. You don’t need to submit to a credit check, so the process usually doesn’t take long.
  • Quick access to cash. As long as you have everything the lender needs, you can walk out of the store with the money the same day.

The inconvenients

  • You can lose your car. The worst case scenario with a car title loan is that you cannot repay the debt and the lender seizes your car. According to a 2016 report from the Consumer Financial Protection Bureau (the most recent statistics available), this happens to 20% of people who take out title loans.
  • You can easily go over your head. CFPB research also found that more than 80% of auto title borrowers take out a new loan the day the original is due because they can’t afford to repay the first one. More than half of all title loans mature into four or more consecutive loans by the time borrowers can repay the debt. Since each new loan adds more interest and fees, you could end up with a lot more debt than expected.
  • Title loans are expensive. Even if you repay on time, title loans incur far higher costs than most other loan options.

Alternatives to Car Title Loans

If you have bad credit, you might think you have no other options. After all, that’s why title loans are still popular, despite being such a threat to your financial well-being.

Still, it’s usually best to avoid this financing option. “Almost every other loan option out there is better than a title loan,” Solomon says. These alternatives can offer borrowers with bad credit access to funds without as much risk as a car title loan.

  • Family and friends. Going to family members or friends for money is not easy. But if you have trusted relationships and are confident you can repay what you borrow, consider applying for an unofficial loan.
  • Personal loan for bad credit. Some personal lenders specialize in working with people who have bad credit. Interest rates and fees may still be higher than what you would pay with good or excellent credit, but they are likely much lower than what a title lender will charge you, and you will usually get a term longer repayment. This reduces the risk that you will need to re-borrow to pay off your debt.
  • Financial aid services. Depending on where you live, your state or local government may provide access to temporary financial assistance. These programs can provide help with medical bills, food, child care, utilities, emergency expenses and more. If you’re looking for quick cash to cover any of these, you might be able to get it without any strings attached or costly debt. You can also find this kind of help through local nonprofits, charities, and religious organizations. Garvey says, “Some nonprofits, such as the Mission Asset Fund, offer low-interest loans (even 0%).”
  • Payday advance. Your employer may be willing to provide an advance on your next paycheck. While this can cause problems when you need that money later, it can give you some time to figure things out. If your employer doesn’t offer payday advances, services like Earnin, MoneyLion, Dave and Brigit allow you to get a payday advance with little or no fees or interest.
  • Alternative payday loan. Some credit unions offer alternative payday loans to eligible members. The interest rate on these loans is capped at 28%, making them much cheaper than some traditional personal loans.
  • Credit advice. If your financial troubles are a symptom of crippling debt, working with a credit counselor can help you make more room in your budget. Credit counseling agencies may be able to use a debt management program to help you get relief from late payment fees and lower interest rates on your existing loans. Credit counselors can also help you get your finances back on track for the future. Garvey says, “The ultimate key to breaking the cycle of limited options and high interest loans is to build the credit you need to access more reputable financial products.

The important thing is that you take the time to consider all of your options and look for ways to get the financial help you need without sinking deeper into high-interest debt.

]]> 3 things to watch in the stock market this week Sun, 12 Jun 2022 11:00:00 +0000

It was another tough time for investors last week as both the Dow Jones Industrial Average (DJINDICES: ^DJI) and the S&P500 (SNP INDEX: ^GSPC) lose 5%. Most of the decline came after news broke that inflation was still near a 40-year high, suggesting further aggressive interest rate hikes from the Federal Reserve.

However, many individual stocks performed better, especially in the case of positive earnings announcements. With that in mind, let’s preview reports on the way this week from Kroger (NYSE:KR), Jabil (NYSE:JBL)and Adobe (NASDAQ: ADBE).

1. Kroger Profit Outlook

Kroger’s stock took a hit after rival walmart (NYSE: WMT) lowered its 2022 earnings outlook last month, and we’ll find out on Thursday whether the supermarket chain has avoided those earnings challenges.

There are good reasons to believe that Kroger can outperform its biggest rival. The chain closed the growth gap in the last quarter, thanks in part to the enthusiasm generated by its fresh produce and prepared food niches. Track comparable store sales to see if Kroger is gaining market share. This metric increased by 3% in Walmart’s latest report.

Kroger weathered soaring costs in early 2022, and investors hope to extend that positive momentum into this report with the help of its vertically integrated supply chain.

When costs rise, owning your own dairy farm, trucking company, and retail network comes in handy. Watch Kroger’s earnings outlook, which currently calls for a sharp increase in annual earnings, for evidence of continued pricing power.

2. Jabil’s operating margin

Electronics manufacturing specialist Jabil will announce its latest results on Thursday, and investors have big questions ahead of the report. The company exceeded expectations on its latest release, which showed an 11% increase in sales. Jabil’s 23% increase in earnings per share is even more impressive.

Track Jabil’s operating profit margin to see if the company is still benefiting from growing demand in the smartphone, cloud services and automotive niches. This metric was less than 5% of sales last quarter, but has the potential to increase as prices increase.

Jabil raised its outlook for 2022 in March, and management now sees revenue landing at $32.6 billion, about 11% more than in 2021. The big question is how its partnership with Apple could set it up for even faster wins down the line.

3. Adobe’s growth rate

Despite setting new sales and cash flow records last quarter, Adobe stock has fallen since that report in late March. Investors’ main concern is that growth will slow after two years of strong demand for its digital media products during the early stages of the pandemic.

This slowdown should not threaten the long-term prospects of Adobe, which announced Thursday the results of the second fiscal quarter. Executives in March forecast sales would rise about 15% for the period, compared with a 17% increase in the first quarter.

In addition to hitting those numbers, investors are hoping Adobe could project better earnings prospects over time as more businesses and consumers move their creative work to its cloud services platform.

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Demitri Kalogeropoulos holds positions at Apple. The Motley Fool holds posts and recommends Adobe Inc. and Apple. The Motley Fool recommends the following options: $420 long calls in January 2024 on Adobe Inc., $120 long calls in March 2023 on Apple, $430 short calls in January 2024 on Adobe Inc. and $130 short calls in March 2023 on Apple. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Boutique hotel room for sale in one of Liverpool’s busiest streets Sat, 11 Jun 2022 06:00:00 +0000

The opportunity to purchase a property on one of the city’s busiest streets has presented itself, but it’s not your average home.

Those interested in the studio will not be able to live in the property but rather invest in a “one-of-a-kind” opportunity. The room is for sale on bustling Bold Street in the fully operational hotel – Boudoir Liverpool.

Described as the “number one investment location” in the country, the buyer will be able to profit from the room by allowing travelers to book it. Listed on Rightmove, with Elite Realty Invest, the apartment is priced at £90,000 and comes fully furnished.

READ MORE: ‘Eco-friendly home’ for sale that could save homeowners over £2,000 on their bills

According to sales figures, collated by Rightmove, properties in the area had an overall average price of £176,866 over the past year. Most of the sales included in the data, over the past year, were apartments, selling for an average price of £173,320.

While semi-detached properties sold for an average of £200,625, semi-detached properties cost £248,612. Overall selling prices in Liverpool city center over the past year are up 7% on the previous year and are similar to the 2008 peak of £176,100.

The hotel has been taking reservations on websites such as since November 2021 and currently has over 200 reviews. It has an average rating of 8.5 out of 10 with reviews saying location, comfort, and cleanliness are the best strengths. There are 17 rooms available throughout the hotel, with a top-floor bar and event space also available for booking.

Possibility to buy a studio at the Boudoir hotel, on Bold street

Elite Realty Invest offers a guide to becoming an investor in the city, with a team to help explain every step of the process. The investment list reads: “Occupancy levels and profit per room (revenue per available room) are all increasing despite being almost double the number of hotel rooms in the city than there are. there were in 2008.

“October 2017 saw the highest average weekend income per available room peak at £104.63. The figures reflect the rising value of the visitor economy to the Liverpool city region, which is now estimated at around £4.3 billion a year.

“From a developer and investor perspective, Liverpool is expected to experience growth in the hospitality sector for some time, with room occupancy expected to increase for the foreseeable future with more capacity required year on year.” See more images and property information on Rightmove here.

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]]> FBI searches home of GOP candidate for Michigan governor Ryan Kelley Thu, 09 Jun 2022 14:40:01 +0000

LANSING — The FBI raided the home of Republican candidate for Michigan governor Ryan Kelley on Thursday morning.

The FBI executed both a search warrant and an arrest warrant at Kelley’s home in Allendale Township, spokeswoman Mara Schneider said in Bridge Michigan.

Video reviewed by Bridge Michigan appeared to show FBI agents driving a man who looked like Kelley into a gray SUV shortly before 9:30 a.m.

It is not immediately clear why the man was taken away by authorities.

Chris Kelley, a parent and Kelley campaign treasurer, said he was “aware” of Thursday morning’s law enforcement raid but declined to comment further.

A real estate agent, Kelley rose to prominence in conservative circles in 2020 for protesting the removal of a Confederate statue in his hometown and organizing a protest at the Michigan Capitol against COVID-19 policies.

Kelley was at the United States Capitol on January 6, 2021, when supporters of former President Donald Trump entered the building in an attempt to stop Congress from certifying President Joe Biden as the winner.

Kelley said he didn’t enter the Capitol. Video from outside the building showed him climbing scaffolding and cheering on other protesters.

Bridge Michigan will have more on this developing story.

42% of customers who buy now pay later “money borrowed to make repayments” Tue, 07 Jun 2022 23:01:00 +0000

According to Citizens Advice, more than two in five recent Buy Now and Pay Later (BNPL) customers ended up borrowing money to make their repayments.

People were asked how they paid off BNPL purchases in the last 12 months.

Some 42% had used some form of borrowing, such as a credit card, bank overdraft, borrowing from friends or family, personal loan, payday loan or guarantor loan.

In the 18 to 34 age group, just over half (51%) had taken out some form of borrowing.

It’s just relying on one debt to pay off another debt

Millie Harris, Debt Advisor

BNPL can be a way to spread the cost of purchases affordably, without having to pay interest.

But the convenience of these services has raised fears that people will be overburdened, with some having to turn to other fee-based borrowing methods to repay the money.

The UK government plans to change the law to bring some forms of unregulated BNPL products into the Financial Conduct Authority (FCA) regulations.

Klarna recently announced that it will report the use of BNPL products to UK credit reference agencies from June, to protect customers and provide the industry with greater visibility of BNPL use, helping to improve affordability assessments.

Opinium surveyed over 2,200 people across the UK in March who had used BNPL in the previous 12 months.

Millie Harris, debt adviser at Citizens Advice East Devon, said: “Most of the people I talk to who use buy now pay later are living off overdrafts and credit cards so use them for repayments.

“It’s just relying on one debt to pay off another.”

Buy now, pay later is part of the credit industry and urgently needs to be regulated as such

Dame Clare Moriarty, Advice to Citizens

Dame Clare Moriarty, chief executive of Citizens Advice, said: “Buyers are piling on more borrowing and getting into increasingly desperate situations from which it can seem impossible to escape.

“The spiral of debt from buy now and pay later to credit cards, loans and even payday lenders shows that this is not a risk-free alternative.

“Buy now, pay later is part of the credit industry and urgently needs to be regulated as such.”

A spokesperson for BNPL Clearpay said: “Globally, 90% of Clearpay transactions are made with a debit card and 95% of installments are paid on time, demonstrating that our customers are using their own money to pay their bills. purchases and that they understand how our refunds are set up.

“Clearpay has always been in favor of fit-for-purpose BNPL regulation that protects the consumer. We look forward to HM Treasury’s decision on this and will continue to work closely with regulators and industry. »

I am looking to use Buy Now Pay Later, will this affect my mortgage application? Mon, 06 Jun 2022 06:00:53 +0000

I’m considering using Buy Now Pay Later, but what exactly is it and will it affect my mortgage application when I buy a house later this year? QR

Assessment: Mortgage lenders will consider using buy-it-now and pay-later programs when considering whether or not to approve someone for a loan

MailOnline property expert Myra Butterworth said: Borrowers who are financially overstretched can be a red flag for lenders as they may not be able to repay their mortgage.

Heavy use of Buy Now Pay Later programs – which offer online shoppers the option to pay at a later date or spread their purchases over multiple payments, often with an interest-free period – can tell a lender that it’s the case, and the borrower finds it difficult to manage his finances.

A lender must make a responsible decision about whether a borrower can really afford the mortgage before it is approved.

While some forms of BNPL borrowing still won’t show up on a borrower’s credit report and won’t affect their credit score, lenders will still be able to see evidence of it on their bank statements, which could have a impact on mortgage demand.

Additionally, Klarna, one of BNPL’s largest providers, began reporting customer loans and late payments to credit reporting agencies on June 1.

Borrowers need to keep this in mind if they want to present the best financial version of themselves in order to secure their home loan and proceed with their home purchase.

Nicholas Mendes, of mortgage broker John Charcol, said: Buy Now Pay Later programs offer the ability to buy something on credit without having to pay until a later date.

This can be done through regular interest-free installments. Typically, this is done in three installments or after a 30-day interest-free period.

It is used as a payment method in some high street stores, but is more commonly used by catalogs and online retailers.

Their products may be aimed at young people and families who may not have other forms of unsecured borrowing facilities such as credit cards.

The most common Buy Now Pay Later providers are Klarna, Clearpay and Laybuy. These companies offer a range of payment options.

Cash flow: the programs

Cash flow: Buy it now and pay later programs offer the ability to buy something on credit without having to pay until a later date.

Impact on a mortgage application

As part of a mortgage loan application, lenders will collect certain information to decide whether the requested loan will be affordable.

For a decision in principle and a mortgage application, this usually includes personal details, income and expenses.

Lenders will also perform a credit search – soft or hard – which will pick up any commitments you have currently applied for.

Once this is complete, a lender will make a decision considering all the information.

How Buy Now, Pay Later commitments will affect a mortgage depends on several factors – the amount outstanding, how much you pay off each month, and when the arrangements will be paid off.

Habits such as continuous lending, overdrafts, buy-it-now, pay-later, and minimum credit card payments could make the lender feel too dependent on short-term credit.

clinic logo

As a result, a reduced maximum loan amount could be provided, or a lender could refuse the request because they feel the risk is too great with the added expense that comes with owning a home.

Not all lenders allow you to grab Buy Now Pay Later loans on a principled decision, it is only at submission that it can become an issue once a thorough research is done.

You might have a decision in principle, but it’s only after an application has been submitted and a thorough search is done that all Buy Now Pay Later commitments are considered, resulting in a revised decision.

Lenders also make a distinction between short term and long term. Buy now, pay later.

Buying a smaller item, like a £60 coat that you choose to defer payment for 30 days, interest-free, is unlikely to put your mortgage at risk, as it will be paid off when your loan is mortgage will be terminated.

But a more expensive item, like a £900 fridge divided into six payments, would be a debt pledge which will impact how much free cash you have each month and therefore need to be taken more seriously.

As with zero percent credit cards for at least 24 months, lenders could end up taking 1.5 percent of the balance as a monthly commitment. But no lender has yet set formal criteria for this.

Things to consider

Before considering buying a property or a new mortgage, think about your budget and track the amounts you need to repay.

Make sure all payments are made on time to avoid late payments appearing on your credit report and potential late fees charged by your Buy Now Pay Later provider.

While some Buy Now Pay Later options don’t appear on your credit report, others do.

The key thing to consider if you are going to apply for a mortgage, whether to buy property or remortgage your home, is that it is best to avoid using payment plans, payday loans or any other form of short-term loan. – term financing of at least six months in advance.

Also, make sure you clear all credit cards or pay off the amount owed as soon as possible, rather than just paying interest and the minimum payment.

Best Mortgages

Ignore Tom Brady and Matt Damon on Crypto and Celebrities on Money in General Thu, 02 Jun 2022 12:00:00 +0000

Amid the current crypto crash, a lot of people are a little miffed at celebrities who have bought this stuff out. Gwyneth Paltrow, Tom Brady, Reese Witherspoon, and even Larry David were all happy to help with cryptocurrency mainstreaming in recent months, only to shut up now that things have gotten a little rough. For Matt Damon, “fortune smiles on the brave”… who apparently aren’t brave enough to say it was maybe a bit oops trying to get ordinary people to gamble their hard-earned cash on hyper-speculative assets.

If crypto was so certain to make you money, to some degree, why would it need so many high profile celebrity endorsements? After all, money is the most famous celebrity there is.

Here’s the thing: famous people endorse and support financial products and services all the time – products and services that fall within the sketchy spectrum. If you’re going to get mad at LeBron James for appearing in a ad, you should probably also be annoyed by those Tom Selleck reverse mortgage ads, or the places where William Devane talks about buying gold, or the litany of A-listers entering SPACs. In the 1990s, Whoopi Goldberg was a spokesperson for Flooz, the cybercurrency of that era that was ultimately destroyed due to crime and fraud.

It might seem a bit obvious to point out – celebrities always make mentions – but I think they do, especially when it comes to money, it’s worth dwelling on. Personal finance and investing are supposed to be a little unsexy; the way you allocate your 401(k) isn’t particularly cool. Today, marketers, advertisers, and the wider culture have managed to make it a hobby and a way of life. Trust has declined so much in traditional financial institutions. People might think Bear Stearns wasn’t doing a great job in the 2000s, so why not take a chance on what Floyd Mayweather says was a good idea now? Companies are able to maneuver this institutional mistrust, replacing cold, untrustworthy, faceless banks with likeable celebrities, to whom consumers might be more open.

Banks left customers “dry” after the 2008 global financial crisis, explained Ana Andjelic, brand manager and business sociology expert. “What is that trust replaced by? she says. “With brands, with celebrities.”

Yes, famous people are often rich, but not because they participated in a get-rich-quick scheme or made a smart investment in some obscure product. They often have financial advisors who help them manage and build their wealth – and those advisors don’t tell them to pile into dogecoin.

Celebrities = $$$

Companies use famous people to try to sell their products because they know it can work. According to a 2012 study by Harvard Business School, athlete endorsers lead to a 4% increase in sales. Several studies have shown that celebrity endorsement ads drive up stock prices.

When it comes to finance specifically, the rich and famous aren’t the most influential in consumers’ lives, but they do make a difference. A 2021 Morning Consult survey found that 20% of investors and 45% of cryptocurrency owners would invest in cryptocurrency if famous people endorsed it (although still behind financial advisors, family members or friends and trade journalists). Younger consumers may also be more influenced by fame – found that 28% of Gen Zers and 24% of Millennials said they seek financial advice from social media and influencers.

Because people are no longer slumped in front of network TV on Friday nights, the captive audience of advertisements, brands are increasingly relying on celebrities and influencers to connect with consumers, explained Shiv Gupta, expert. of digital marketing and director of the consulting company Quantum Sight. . “The channels are narrowing,” he said. A celebrity can catapult your product to consumers through their existing audience and spheres of influence. You can see how it went with crypto. “You had the nerdsphere or the geeksphere pushing the concept of crypto as something that has potential,” Gupta said. “The next step was Larry David and everyone else who came in and started discussing crypto. It was more like saying, “See, that’s common.”

The generalization of a financial product makes it more comfortable for consumers, giving them the impression that it is normal to try it. It can also make them forget about the stakes, even in high-stakes spaces.

“Celebrities endorsing brands is nothing new, we’ve seen that for decades. Selling crypto and NFTs is, obviously, a lot more complex and I would say requires more professional responsibility than selling crypto. typical consumer goods,” said Anindya Ghose, a business professor at NYU. “If you approve of potato chips and energy drinks, that’s another thing.

If you bought a bag of chips because an actor said so and it turned out gross, it doesn’t matter. But if you did a reverse mortgage, which regulators warned about in ads, and accidentally lost your house because Tom Selleck said so, that’s not so good. The focus is on young people and crypto now, but no generation is immune.

“There are those who say, ‘Well, I like Tom Selleck, I grew up with Tom Selleck, he seems like a famous guy. After all, he fought crime on Magnum IP”” Gupta said. “It’s a generational thing, he gets a little older with you.”

Probably don’t listen to celebrities talking about money

If you had asked me in 2004 if I listened to the guy from CO or the guy from Goodwill hunting what to do with my money, I hope I didn’t say either, but I probably would have said the Goodwill hunting dude. Turns out 2004 me would have been wrong. In fact, you shouldn’t listen to either of the Goodwill hunting guys because Ben Affleck is into sports betting which is often not ideal for the end user wallet either.

In the end, maybe I should have said CO guy, Ben McKenzie. He has a few points about listening to famous people about money and, in particular, crypto… which is you shouldn’t. McKenzie called celebrities pumping crypto a “moral disaster” in a 2021 article for Slate alongside journalist Jacob Silverman. “These rich and famous entertainers might as well be asking for payday loans or sitting their audiences at a rigged blackjack table,” they wrote. (To be fair, McKenzie also has something to gain here – he and Silverman are writing a book on crypto scams right now that they’re probably getting paid for, and he’s carved himself an anti-crypto celebrity. .)

Celebrities may not have their fans’ best financial interests at heart. I love Reese Witherspoon, but his crypto tweet, at least for now, feels pretty irresponsible. “At the end of the day, it’s all about the money,” Andjelic said.

It’s not just that celebrities encourage unnecessary risks. Kim Kardashian and Floyd Mayweather may have recently been part of a crypto pump and dump scheme. The boxer is no stranger to scandal in the crypto space: In 2018, he and music producer DJ Khaled settled charges from the SEC for failing to disclose that they had been paid to promote the initial offerings of coins, or ICO, such a dubious trend that you rarely hear. more about it. Actor Steven Seagal also got in trouble for something similar.

It’s easy and tempting to dismiss much of this — of course, celebrities shouldn’t be a reliable source of financial information. And regulators have a say here in consumer protection – endorsers are expected to be honest about their compensation. But famous people often creep into our way of thinking about money in a bit of an uncomfortable way. If you think about it for a moment, celebrities associating themselves with even mainstream names in finance are a bit, well, huh. Jennifer Garner looks good but also isn’t rich just because she’s super savvy with her Capital One card.

Celebrities and financial brands are teaming up to sell people a lifestyle, an aspiration for wealth that may not be realistic. The famous lend their reputation to products that can be questionable. They often do this without acknowledging their own financial stakes – Tom Brady is not just a spokesperson for crypto exchange FTX, he is an investor in the company – or while ignoring that they may take risks, perhaps the average person shouldn’t. And the downside risk of lending their reputation, if a project starts from the grassroots, may not be significant.

“It’s not like oh Tom Brady stopped doing anything and now he’s just a crypto boy, you know?” said Andjelic. “People care for a minute.”

Except, of course, the people who lost.

We live in a world that constantly tries to trick and fool us, where we are always surrounded by scams, big and small. It may seem impossible to navigate. Every two weeks, join Emily Stewart in examining all the little ways our economic systems control and manipulate the average person. welcome to The great pressure.

Do you have any ideas for a future column? What is it about the economy that bothers you that you can’t quite put your finger on? E-mail

New laws and more affordable lenders could shake up the payday loan market Tue, 31 May 2022 09:01:00 +0000 Inflation has particularly affected people who are already struggling to fit gas in their tanks and groceries in their refrigerators. For many, a payday loan may seem like the only way to get the money needed.

In recent years, however, as more states impose restrictions on risky short-term lending, new lenders have emerged offering small, lower-cost loans, making it easier than ever before to find a loan. an affordable loan that won’t drag you into unmanageable debt. .

In some states, new laws mean better loans

There is currently no federal law for maximum interest rates on small dollar loans; rather, states decide whether or not to cap payday loan rates. Therefore, the cost to borrow a few hundred dollars often depends on where you live.

In recent years, four states — Colorado, Hawaii, Ohio and Virginia — have passed laws that effectively reduce the cost of small loans and give borrowers longer repayment terms. A study by The Pew Charitable Trusts published in April found that even under the reforms, payday lenders were still operating, but with more secure loans.

Also Read: More US Subprime Borrowers Are Missing Their Loans

Although some new lenders began doing business in these states once the laws took effect, the main impact was that existing payday lenders consolidated their storefronts and made their loans more affordable, says Alex Horowitz, director of research at Pew.

National banks and local credit unions step in

A bank or credit union may not have been your go-to for a small loan in the past, but it could be today.

Seven major banks have started offering or announced plans to offer small-dollar borrowing options with low annual percentage rates in recent years, Horowitz says, including Bank of America BAC,
Wells Fargo WFC,
and Truist TFC,
These loans are available to existing bank customers nationwide, regardless of state interest rate limits.

Banks primarily rely on customers’ bank history rather than their credit scores to determine if they qualify for a small loan. The loans – which start from $100 – are usually repaid in monthly installments at annual interest rates no higher than 36%, the maximum rate an affordable loan can have, according to consumer advocates.

“The fact that banks start offering small loans could disrupt the whole payday loan market,” says Horowitz.

Local credit unions have membership requirements and maintain lower profiles than payday lenders, so they’re often overlooked by people who need cash fast, says Paul Dionne, director of research at Filene, a think tank that focuses on helping credit unions serve their communities.

But if you can walk to your local credit union, chances are you’ll qualify for membership, he says.

This is because credit unions often serve people who live or work in their communities. These organizations are working to provide financial inclusion by tailoring their products, like loans, to better meet the needs of their customers, Dionne says.

“Credit unions are getting better at having the best product and not saying no and figuring out what’s the best fit for that person coming in,” he says.

Lily: CFPB closes payday lender it calls venture capital ‘darling’

Other Borrowing Options

Even in states where laws seek to ban payday loans altogether, people are able to find alternatives to risky borrowing, says Charla Rios, researcher on small-value loans and debt at the Center for Responsible Lending.

You may be able to work out a payment plan with your utility company or borrow from a friend or family member, she says. Here are some borrowing options to consider before getting a payday loan.

Payday advance. Some companies, including Walmart WMT,
and Amazon AMZN,
allow their employees to access a portion of their paycheck earlier as benefits. It can be an interest-free way to borrow money if your employer offers it, but since the repayment comes from your next paycheck, it’s best to use it sparingly.

Cash advance applications. Apps like Earnin and Dave let you borrow a small amount of money, usually $25 to $200, before payday. They sometimes charge a fee for instant access to your money or ask for voluntary tips. They also take reimbursement from your next paycheck.

“Buy now, pay later.” For necessary expenses, a “buy now, pay later” loan allows you to purchase an item with partial payment only. You pay the balance in equal installments, usually over the next six weeks. This type of financing can be interest-free if you pay the full balance on time.

Low interest installment loans. Depending on your credit score and income, you may qualify for an installment loan with an APR below 36%. These loans have amounts ranging from $1,000 to $100,000 and are repaid over longer terms, usually two to seven years. Online lenders who offer bad credit loans often pre-qualify you for a loan using soft credit, allowing you to compare loans without affecting your credit score.

More from NerdWallet

Annie Millerbernd writes for NerdWallet. Email:

Traders accuse council bosses of ‘cheating’ City over £1 market deal Sun, 29 May 2022 05:00:00 +0000

Liverpool Council have been accused of ‘misleading the city’ over a deal in which they claimed to have taken control of the city’s markets for £1.

In 2016 the council bought Geraud Markets Liverpool Ltd, the company that ran the city’s markets. At the time, the board said it only paid £1 for the company which was renamed Liverpool Markets Limited (LML).

Councilor Malcolm Kennedy, then a cabinet member for regeneration, described the deal as a “turning point” for the city. However, it has now emerged that the deal involved the council waiving a significant debt owed to them by Géraud.

READ MORE: ‘Shock’ over multi-million collapse of Liverpool markets company

An LML financial statement published on Companies House explains that £515,073 was written off to enable the purchase of the shares. The board said “legacy” issues around market management will be looked at.

The document, published in December 2018, reads: “Geraud Markets (UK) was the parent company until September 2016. The prior period exceptional charge included in the statement of total comprehensive income includes £515,073 in respect of balances due from which were written off by the company as a condition of the purchase of shares held by Geraud Markets (UK) Limited.”

The report was signed by Darren Hardy, in his capacity as director of LML. Mr. Hardy was also a division manager in the city’s regeneration department at the time.

LML ran well-known markets such as St John’s in the city center and Great Homer Street in Everton. The company went into liquidation in May 2019.

Colin Laphan, chairman of the Liverpool Markets Traders Association, said: “Market traders across Liverpool have been stunned to find that the council has misled people by falsely claiming they have taken over the ‘markets’ for 1 £.

“While they already knew part of the deal was to write off over £500,000 of debt.”

Last week ECHO revealed LML owed the council millions of pounds following its collapse.

Companies House information records that the company was formed in 2003 and Liverpool Council took control of the company in 2016, buying all the shares. The December 2015 accounts showed a deficit of £965,330.

This deficit rose to £2,398,077 in March 2017. Latest figures released earlier this month show LML owes the council £3,469,896.00.

Mr Laphan expressed new concern about how the company had taken on so much debt in recent years.

He said: “Over the past few years, tens of millions have been collected by the marketplaces company, but there is no transparency as to where that money is going. We have been asking for service fee schedules since then. over 15 years.

“This is just one example of the lack of accountability and the hazy conditions around market revenue. Great Homer Street probably generated around £500,000 in revenue a year.

“As traders, we’ve all had one broken promise after another. Those in power seem to have forgotten their basic obligations to the community and need to be held to a higher standard.”

Liverpool Council announced the £1 deal in 2016, when a spokesperson said: “City Council today paid nominal £1 to take over Geraud Markets Liverpool Ltd and will now manage all day-to-day operations of the market with immediate effect.”

Speaking on behalf of the board at the time, Cllr Kennedy, who resigned as an adviser in October 2021 after moving to Spain, said: “This deal is a defining moment in the history of Liverpool markets. and guarantees that they will become a major asset again. in our thriving retail sector.

“As a city council, we are investing millions in upgrading facilities and the time was right to regain full control of operations.

“Thanks to this new agreement, we will be able to host, manage, promote and deliver markets internally and ensure a level of quality worthy of the new facilities in which we are investing.

“This new approach will provide current tenants, future traders and customers with a single point of contact that will allow us to improve the market offer at all farmers’ markets, international markets and Christmas markets.”

Councilor Harry Doyle, Cabinet Member for Visitor Culture and Economy, said: ‘Any legacy issues relating to the management of markets will be reviewed by officers and nothing will be spared.’ That’s why I’ve called for a review to reset our relationship with merchants going forward.”