Museum shop – Southeastern Quilt Museum http://southeasternquiltmuseum.com/ Tue, 10 May 2022 15:50:08 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://southeasternquiltmuseum.com/wp-content/uploads/2021/10/cropped-icon-32x32.png Museum shop – Southeastern Quilt Museum http://southeasternquiltmuseum.com/ 32 32 What are the different types of personal loans? https://southeasternquiltmuseum.com/what-are-the-different-types-of-personal-loans/ Tue, 10 May 2022 15:50:08 +0000 https://southeasternquiltmuseum.com/what-are-the-different-types-of-personal-loans/

No one wants to be in a position where they have to rely on a loan to help them out financially, but we all have to accept that we may end up in that position eventually.

Personal loans are one of the most common types of loans that people end up taking out at some point in their lives, and the reason is that personal loans have no specific purpose.

While mortgages, car loans, student loans, etc. have very specific purposes, personal loans can be for almost anything…almost.

But there are also many different types of personal loans you can get too, and each type is better suited to a person for different reasons. So before you go hunting installment loans in lexingtonlet’s take a look at the types of personal loans.

Explain personal loans

Personal loans are a type of installment loan, which means that you repay them in installments. This loan is given to you without even needing to use the money for anything specific.

Some lenders will allow you to check your offers online without affecting your credit score, but others will not, and when applying you should be aware that you will be required to disclose your personal and financial information and agree that they obtain firm credit. .

This can have a negative impact on your credit score, but only in a very minor and temporary way.

If you qualify, you will receive different offers and be able to repay over different periods, with different interest rates and payment rates.

The interest rates for these loans are usually fixed rate, and they will often remain fixed in monthly installments for the duration of the loan activity. You may also have to pay an administration or origination fee, and you will not get it back.

Should you avoid personal loans?

There are three particular types of personal loans that we recommend you avoid. These are payday loans, title loans and pledge loans.

Payday loans are short term and come with huge fees. They’re not always bad, especially if you’re money wise, but they tend to leave borrowers in a cycle of debt that often ends with taking out new loans to pay off old ones.

Title loans are easy, but you must use your car as collateral. Repayment terms can be short and interest rates high, this can add to the wear and tear on you in the long run, especially if you can’t afford it and find yourself at the end of a repossession.

Pawnbrokers can be a good alternative to payday loans, but you risk losing your items to the pawnbroker and you will often have to pay fees if you want to extend the repayment term.

What are the types of personal loans?

So, knowing all of the above, what are the different types of personal loans you can get?

Here are the main types of personal loans you are likely to come across.

Not guaranteed

Unsecured loans are loans that are not backed by collateral to protect the lender. Instead, they will usually have a higher cost in their interest rates, which means they may offer you a higher APR.

That being said, you are not putting any of your assets at risk by taking out an unsecured loan.

You will still be assessed on your credit score, income and debts, and you could get a rate of 6-36%.

Secure

Secured loans are the loans that are safe for a lender because you have to post collateral. This could be your house, car or other material possessions. This is often the case with mortgages and car loans.

If you are unable to repay the loan, your house/car may be repossessed.

Fixed rate

The majority of personal loans are fixed, which means the rate you pay and the monthly payments you make to repay the loan will remain the same for the life of the loan.

These fixed rate loans are great for keeping your monthly payments consistent on long-term loans.

Co-signed

Co-signed loans are best if you have bad credit and cannot qualify on your own.

Someone else will co-sign the loan, but they won’t have access to your funds. That person will still be in trouble if you don’t make the payments, though.

A person who is a co-signer will generally have great credit.

Floating rate

Variable rate loans are calibrated by banks, and depending on how it goes up and down, your loan will do the same. You will usually get a lower APR for this, and there will often be a cap on how much this can change over time.

They are not widely available, but are usually found on shorter term loans.

Debt Consolidation

Debt consolidation personal loans are actually a popular type of personal loan. This type of personal loan will take all of the loans you are currently paying off and consolidate them into one large lump sum.

This is ideal as it reduces the amount you have to pay. How?

Well, if you have multiple loans at different interest rates, it will cost you more in the long run, when you consolidate your loans into a personal debt consolidation loan, you only have one interest rate. interest with which you have to deal.

Credit line

Personal lines of credit are revolving credits, and they are much like a credit card, more than a personal loan. Instead of getting a lump sum of money, you will have access to a line of credit from which you can borrow as needed.

With this, you will only have to pay interest on the money you borrow

It works best when you need to borrow money for running costs or if you have an emergency.

This article does not necessarily reflect the views of the editors or management of EconoTimes

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QuickQuid and Pounds to Pocket borrowers receive payment news https://southeasternquiltmuseum.com/quickquid-and-pounds-to-pocket-borrowers-receive-payment-news/ Sat, 07 May 2022 15:00:00 +0000 https://southeasternquiltmuseum.com/quickquid-and-pounds-to-pocket-borrowers-receive-payment-news/

Borrowers who were wrongly sold loans they couldn’t afford by two companies that went bankrupt will get a little more back than they expected.

Around 78,500 QuickQuid and Pounds to Pocket borrowers will be reimbursed some of the interest and fees charged to them at a rate of 53.5p for each pound due over the next two weeks, it has been confirmed.

Co-directors at Grant Thornton originally said borrowers should expect a payment of between 30 and 50 pence per pound in interest, fees and charges paid on their badly sold loans, plus 8% interest. But this week they contacted customers to say they will in fact receive 53.5p per £1 due, plus interest.

Read more: More families are turning to payday loans as the cost of living crisis rages

The update comes after CashEuroNet, of which payday lenders QuickQuid and Onstride.co.uk (formerly known as Pounds to Pocket) were part, went into administration in 2019 and ceased lending.

The claims portal for those who believed they were mis-sold a loan closed last February, so it’s too late to start a new claim. Customers who claimed before then should have received a decision on their claim by the end of June 2021, and another email this week detailing the amount they will recover. It is also too late to appeal decisions made by Grant Thornton, as borrowers had 21 days from receiving an initial decision on their application in June 2021 to do so.

When you submitted an application, you were required to include contact details, as well as the bank details you used when taking out your loan, and these will be the details that Grant Thornton will use to provide updates on your application. Any payment due will be transferred this week or the next.

It is now too late to update your contact details with Grant Thornton. A check will therefore be sent to the address you indicated during your complaint. If your address is no longer correct, contact CashEuroNet customer service on 0800 0163 250.

Payday loans and other short-term loans have been largely poorly sold and dozens of short-term lenders have gone bankrupt, including former Newcastle United sponsor Wonga, leaving customers with legitimate complaints to get dramatically reduced payments – or even finding it too late to complain if their lender has gone bankrupt.

If you couldn’t afford to repay the loan, or the lender didn’t properly check your finances, you may be able to get your money back, as lenders need to review your finances to make sure you can pay the loan. loan and fees. If, as was often the case, this was not done correctly and you should not have received the money, or if the costs or repayment schedule were unclear, you have been wronged. sold.

Citizens Advice has a guide to making a complaint, including a sample letter to send to your lender here.

Read more :

]]> Possible Finance launches new products to help underserved consumers improve their financial health https://southeasternquiltmuseum.com/possible-finance-launches-new-products-to-help-underserved-consumers-improve-their-financial-health/ Tue, 03 May 2022 15:00:00 +0000 https://southeasternquiltmuseum.com/possible-finance-launches-new-products-to-help-underserved-consumers-improve-their-financial-health/

$20 million in equity financing and new executive hires will support continued growth

SEATTLE, May 3, 2022 /PRNewswire/ — Possible Finance (Possible), the mission-driven fintech company providing life-changing financial services to underserved consumers, today announced a new $20 million in equity financing, hiring key executives and launching their new credit card and cash advance products – Possible Card and Possible Cash. These products build on the success of Possible’s first product, the Possible Loan – a short-term, low-payment loan designed to help one in three American adults who struggle to access affordable credit and are victims of predatory lending practices. Currently available in 21 states, Possible has provided over 1.65 million small dollar loans to over half a million customers since 2019.

The possible card is not a traditional credit card with interest charges or penalty fees. Instead, Possible has created a revolutionary card designed to protect members from mounting debt and improve long-term financial habits. It’s the only unsecured credit card on the market with no interest or late fees – ever – and a simple monthly fee. Designed specifically for people undervalued by today’s financial system, Possible Card does not require a credit check for approval and uses Possible’s existing proprietary credit risk technology. The company also announced Possible Cash, the first and only cash advance offer that gives customers the option to qualify for an unsecured credit card. Customers who establish a successful repayment history on Possible Cash will be automatically pre-approved for a Possible card. These offerings will allow Possible to reach more underserved consumers who need quick and affordable access to capital without compromising their progress toward long-term financial health.

“We launched Possible to help people break the cycle of debt caused by predatory financial products while building their credit history,” said Tony Huang, co-founder and CEO of Possible Finance. “When we realized that many of our customers had escaped the payday debt cycle and fallen directly into a similar trap caused by credit card debt, we knew Possible could offer a better solution. existing credit cards operate like payday lenders – they intentionally profit from lending to vulnerable consumers knowing they won’t be able to make timely payments.To reinvent the credit card, our team applied the same principles , data and technology that we have built for the Possible loan. I am thrilled to bring the Possible card to underserved consumers who desperately need a better option.”

Today, Possible also announced that it has raised $20 million in new equity to fuel growth and expand its team. This round includes existing investors Union Square Ventures, Canvas Ventures and Unlock Venture Partners, as well as new investor Euclidean Capital. Possible also recently partnered with Coastal Community Bank, member FDIC, to accelerate the development and large-scale access to these essential new products. The banking partnership with Coastal is a critical part of Possible’s growth strategy, enabling the company to design and manufacture more innovative products at scale.

“Possible has laid the foundation for a very special consumer brand that can reset the current misalignment of economic incentives between financial service providers and their low-income customers,” said John Buttrick, a partner at Union Square Ventures, on why the company doubled down on the Possible team. “We continue to be excited about Possible’s innovative approach to expanding product offerings. And we’re excited to welcome the Euclidean Capital team on this journey with us.”

Possible has expanded the company’s leadership team to include former Venmo chief marketing officer, Kevin Platshon, as Marketing Director; former Chief Loan Officer of Capital One and Chief Financial Risk Officer of Genesis, Ellen Falboas Chief Credit Officer and former Chairman of Credit Sesame, Jesse Leveyas product manager.

About possible financing
Possible Finance is on a mission to help communities break the cycle of debt and unleash economic mobility for generations to come. The company provides an opportunity for any customer, regardless of credit rating, with quick and affordable access to capital and a guided path to long-term financial health. Founded in 2017, Possible is recognized by consumer advocacy groups and customers as a leader in shaping the future of financial services to be fair and affordable for everyone. To learn more about Possible, visit www.possiblefinance.com.

SOURCE Funding Opportunity

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5 Popular Fintech App Features Banks Should Add to Mobile Banking https://southeasternquiltmuseum.com/5-popular-fintech-app-features-banks-should-add-to-mobile-banking/ Mon, 02 May 2022 04:09:12 +0000 https://southeasternquiltmuseum.com/5-popular-fintech-app-features-banks-should-add-to-mobile-banking/



5 Popular Fintech App Features Banks Should Add to Mobile Banking



































]]> 3 payday loan alternatives you need to know – The Suffolk News-Herald https://southeasternquiltmuseum.com/3-payday-loan-alternatives-you-need-to-know-the-suffolk-news-herald/ Thu, 28 Apr 2022 14:41:54 +0000 https://southeasternquiltmuseum.com/3-payday-loan-alternatives-you-need-to-know-the-suffolk-news-herald/

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If you are in dire need of money due to an emergency or similar situation, the first thing that probably comes to mind is payday loan. Payday loans, or as some call them, payday advances, are short-term loans that let you borrow against your next paycheck. However, due to the immediate nature of the loan, it usually comes with a high interest rate.

Of course, this interest rate or fee depends on the lender you chose to take the payday loan from and the amount you borrowed. Also, one of the best features of payday loans is that they usually don’t have strict credit check requirements. Some lenders don’t even require them and instead look at the person’s ability to repay.

Although payday loans are quick, easy and convenient, they may not be the best option for you. In fact, some people don’t prefer payday loans unless they have no choice. If you’re looking for alternatives, here are a few that might interest you.

Loans to credit unions

credit unions work similarly to banks as they offer the same products and services like personal loans, credit cards, direct deposit, mobile banking, etc. Their main difference from traditional banks and lenders is that they are non-profit organizations. This means they usually have a lower interest rate on the loan and pass the savings on to their members.

Credit unions are member-owned organizations that operate to help their members financially. While lower interest rates on their loans, high interest rates on their savings accounts, loan discounts, and better repayment terms all sound good, there’s a catch.

First, you must be part of a credit union. Credit unions are usually found among homeowners associations, PTA members, congregants, etc. Moreover, it is not enough to be a member. Sometimes a member must be in good standing with the organization or make significant contributions to it.

Loans for bad credit

One of the most common reasons people opt for payday loans is that they have little or no credit check when they apply. It’s probably because they have a bad credit rating overall. If you’re one of those people, you’re probably considering a payday. online loan. However, there is one type of personal loan you can get if you have bad credit, and that is bad credit loans.

As the name suggests, bad credit loans are a category of personal loans designed for people who have low credit scores or are just starting their credit. Bad credit loans are usually the type of loan to borrow when someone does not qualify for a traditional personal loan. However, they work the same way as personal loans. The lender will give you the money in one installment and you will have to repay it in monthly installments.

They are usually founded in traditional banks and lenders. As we all know, banks and traditional lenders usually have strict lending requirements. They will review your creditworthiness and determine if you qualify for a regular personal loan. However, when you are not, they have the option of offering you a bad credit loan.

As mentioned earlier, bad credit loans work the same way as regular personal loans, but with a catch; they tend to have higher interests. Also, they have a strict repayment schedule and usually charge a fee when you miss a single payment.

Pawnbrokers

To get a pawn loan, you need to own something of value. Popular items that will earn you money are jewelry, paintings, gadgets, vehicles, etc. You can even pawn particular items that might pique the interests of the pawnshop owner.

Of course, you should also be prepared to make this item your collateral. Staff would then be evaluated. Item appraisals will assess the item’s current market value, resale potential and condition. After that, they will then decide whether they want to offer you a loan or not based on the assessment. If the item passes the appraisal stage, you will go home with the money and the pledge note if you accept the loan.

This pledge ticket is important because it allows you to take back the pledged object. You return at the agreed time, usually a few weeks or a month at the most, to repay the loan and collect the item you have pledged.

Last words

Although payday loans are quick and convenient, they are not necessarily the cheapest option. They have a mixed reputation, so might as well opt for alternative options.

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Looking for a tax-free loan? It’s Probably Not Worth It, Experts Say | Business https://southeasternquiltmuseum.com/looking-for-a-tax-free-loan-its-probably-not-worth-it-experts-say-business/ Tue, 26 Apr 2022 10:56:00 +0000 https://southeasternquiltmuseum.com/looking-for-a-tax-free-loan-its-probably-not-worth-it-experts-say-business/

Last-minute filers are scrambling to ship their returns to the Internal Revenue Service by the 2021 tax year deadline of Monday, April 18, and are likely anxiously awaiting a big check via their refund of tax.

Some tax firms or other lenders may offer the option of accessing these funds sooner, in the form of a tax refund loan, also known as a refund anticipation loan.

Regulators and advocacy groups have warned of the potential downsides of loans, especially those that come with high fees or high interest rates. Personal finance experts generally do not recommend them.

Here’s what you need to know about loans this tax season.

What is a tax-free loan?

A tax refund is, quite simply, an advance on your tax refund, said Matt Schulz, chief credit analyst at LendingTree.

It’s a way to borrow against your tax refund to access funds immediately: borrow the amount from a lender and give them the refund when you get it from the IRS.

“Unlike a lot of loans, it’s not necessarily something you’re looking for,” Schulz said.

Tax refund loans are usually offered by a tax preparation company, Schulz said. You will not find them in your bank.

What are the advantages and disadvantages?

The advantage of a repayment anticipation loan is quite simple: you have immediate access to your repayment amount, instead of waiting the days or weeks it takes to get the funds from the IRS.

The wrong side? “It can end up costing you money,” Schulz said, in the form of interest or fees.

Some tax firms will offer you a tax refund loan at no cost, Schulz said. But, you will have to pay the company to do your taxes for you.

“Even with a 0% loan, there will always be a minimum that you will pay to prepare your taxes,” he said. “So if you’re someone who’s already planning to do your taxes, maybe it’s not that bad.”

Teresa Murray, director of the US Public Interest Research Group’s consumer watchdog office, says the cost may outweigh the benefits.

“We really urge people to avoid any type of prepayment anticipation loan,” she said. “Anything you borrow against a refund you haven’t gotten yet…it’s just bad news written all over the place.”

The North Carolina Consumer Council is warning anyone considering a loan against their tax refund to “think again.”

“While getting a tax refund advance may seem tempting, these loans are actually payday loans for tax returns, and you should avoid them as much as possible,” according to advice from the council on its website. . “The full amount must be repaid, as with any other loan, even if your repayment is less than expected or ends up not being repaid at all.”

When can I expect to get my refund?

The IRS issues more than nine out of 10 refunds in less than three weeks, according to its website. Taxpayers who filed their returns electronically will get their refund faster than those who mailed their tax forms.

And the department is handing out refunds faster and faster, Murray said. Now, some e-filers can expect to see the funds in their bank account within days.

“If you file electronically, you can get your money typically in four to six days,” she said.

North Carolina taxpayers may get their state tax refunds slower, but the upside is that a delay in accepting returns this year was due to a legislative reduction in the personal tax rate. .

Should I consider a tax-free loan?

Schulz said if you really need the money — and read the terms carefully — a tax refund loan can be an alternative to riskier ways to fill your bank account.

“Emergencies happen: job loss, medical emergencies, whatever the case,” he said. “(In that case), there are worse things you could do than a tax refund.”

And assuming you’ve done your taxes correctly, he said, a tax refund loan is a secured loan, with your actual refund serving as collateral. This makes it much less risky than, say, an unsecured payday loan with an exorbitant interest rate.

Murray, on the other hand, cautions against lending under any circumstances. She suggests holding on until you get your refund, especially since it might not take very long if you filed electronically and set up direct deposit.

“If you’re short on money…find a friend or relative to borrow money from for a few days,” she said. “Don’t go the prepayment loan route because they’re just ridiculously expensive…you’re paying for your own money.”

As this year’s tax filing season ends without the threat of a government shutdown going forward, that could make these loans even riskier, according to the North Carolina Consumers Council.

“Frequent federal government shutdowns could make these types of loans more attractive if you want to get your money back quickly, which can complicate things. Remember that a delay in getting your repayment will not be considered by the lender and will not release you from any obligation to repay the loan on time,” its website states.

Schulz added that major tax firms — like H&R Block or Jackson Hewitt — only accept applications for tax refund loans during a certain period, often between December and February. So, for these filers, the loan application window may already be closed.

And Murray had another piece of advice for any registrants who haven’t signed up yet: start early next year.

“When you’re in a rush, you’re more likely to not pay attention,” she said. “Anytime you have the words ‘not careful’ and ‘IRS’ in the same sentence, that’s not a good thing.”

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Give credit where it’s due https://southeasternquiltmuseum.com/give-credit-where-its-due/ Sun, 24 Apr 2022 17:58:19 +0000 https://southeasternquiltmuseum.com/give-credit-where-its-due/

The inequality is clear: while only 1 in 19 white Americans has a credit score of 620 or less – a level considered high risk for most lenders — 1 in 5 black Americans does.

The reasons for these disparities are complex, but they stem from discriminatory policies dating back to before the founding of the nation that denied black Americans access to wealth-generating assets.

“Credit scores are the perfect example of how structural racism works,” says Chi Chi Wu, an attorney at the National Consumer Law Center and author of “Reparations, Race, and Reputation in Credit: Rethinking the Relationship Between Credit Scores and Relationships with Black Communities.”

“You start with black consumers who were denied their human rights and economic rights during slavery and redlining and Jim Crow with legalized discrimination,” says Wu. “Then you deprive their communities of assets. This affects the economic position of these communities, and this is reflected in credit ratings.

With credit scoring, a system developed in the 1970s and implemented in the 1980s apparently as a neutral way of weighing creditworthiness, its impact on the racial wealth gap is clear. Black Americans are more likely to have a negative payment history against them in credit scoring and much less likely to experience positive benefits from the type of payments they are most likely to make, such as rent and public services. And the credit bureaus don’t have to give a reason.

H. Hopp-Bruce/The Emancipator/Nadia Snopek/Adobe

These factors hunt some black Americans are moving out of traditional credit markets, moving them into less stable forms of credit, such as check cashing, payday loans, rent-to-own systems, and secured credit cards. These often come with usurious interest rates and exorbitant fees that make borrowers more likely to default, further damaging their credit.

The system discourages some black Americans from trying to access credit markets for fear of being rejected or subjected to predatory conditions. Black Americans are much more likely to be invisible credit, with little or no credit history. While only 9% of white Americans fall into this category, 15% of black Americans do.

Credit-Invisible Americans primarily use cash, viewing it as safer than banking, and even promoting the idea among black consumers that paying cash is a virtue.

In addition to the 15% of black Americans who are invisible to credit, an additional 13% have a credit history that does not show up in credit scores, compared to 7% of white Americans, according to data from the Consumer Financial Protection Bureau.

Rep. Ayanna Pressey’s (D-MA) recent push to reform credit reporting practices comes not just from policy documents and data that show the stranglehold these practices place on Americans, especially people of color. On this question, she brings her lived experiences to bear.

“In full transparency, I’m a black woman, growing up in America, who was raised in a red light district,” Pressley said during a congressional hearing last July. “While I was working as a full-time unpaid intern in Congress, working three part-time jobs, collecting various money orders to pay rent, to pay utilities, I cashed my check at a check cashing establishment . And I did it because that’s what I grew up close to.

She says her family “took great pride” in buying things with cash because it was considered the honorable thing to do.

She notes that her majority-minority congressional district in Greater Boston “has 57% of the city’s check-cashing locations, but only 12% of the city’s commercial bank branches.”

“So for my constituents and the roughly 1 in 5 people across America who are unbanked or underbanked, lack of access and broken trust with financial institutions is incredibly costly,” says Pressley. “The cost of cashing checks alone can be as high as $2,400 per household with an annual income of $32,000. Only. Collection. Checks.

Pressley described the very factors that drive the dual credit market to send more black and brown Americans to high-risk, high-cost financial institutions rather than traditional banks: fear of taking on debt, distrust of towards financial institutions and even the idea that cash is king.

“The experience you hear Rep. Pressley talk about is the experience of so many black Americans,” says Lisa Rice, president and CEO of the National Fair Housing Alliance. “They live in a credit desert.”

The American dream will never be accessible to all as long as inequalities are integrated into the credit market. It’s time to revamp it. Here’s how.

Revamp credit scoring to better assess risk. Today, the credit score problem is largely two-fold: First, credit scores are often inaccurate or affected by inherent racial bias. And in most cases, they’re also a terrible predictor of consumers’ ability to pay.

President Joe Biden has proposed the creation of a public credit reporting agency to compete with private entities Equifax, TransUnion and Experian, which have collectively faced a torrent of criticism for everything from data breaches to inaccuracies and racial prejudice.

Biden’s plan is admirable, but the problem isn’t just who scores, it’s how they do it. A public credit reporting system can only provide benefit if it fairly and transparently assesses the factors that actually predict a consumer’s ability to pay, gives consumers a greater ability to challenge and correct inaccurate information and refrains from unequally weighting negative and positive payment activity.

Payment history is one of the major factors affecting credit rating. This in itself creates racially disparate results. For example, timely mortgage payments improve consumer credit scores, but rent payments generally do not. But while the home ownership rate for white Americans it’s 72%, for black Americans it’s only 43%.

“We need to make sure the infrastructure is in place for people to report their housing rental payments to credit repositories so the data can be used,” Rice said.

Weighing rent payments mortgage payments will also help close the low-income credit gap created when low-income Americans are forced to make tough decisions about what bills to pay to try to make ends meet.

“People pay their rent first,” says Wu. credit.”

Other alternative payment data that may serve as more predictors for ability to pay, the researchers say, are utility payments, telecommunications account payments such as cell phone plans, and payment histories from mobile phones. Bank accounts.

Stop using credit scores for non-credit decision making and stop weighing unwilling debt. There is no data – none – showing that a person’s credit rating is predictive of that person’s value as an employee. Yet credit scores are often used for job applications, making it more difficult for people with mild or negative backgrounds to advance in their careers. This inability to earn better wages and pay bills better creates a cycle that causes people to fail.

“Credit scores aren’t as predictive as people think,” Wu says.

In addition to prohibiting the use of credit scores in employment decisions (with narrow exceptions for things like federal security clearances), the use of credit scores should also be prohibited to access coverage. insurance or to open accounts for heating, electricity and other necessary utilities. to keep homes safe and livable.

Additionally, credit reporting agencies should not be allowed to consider involuntary debts, such as debts incurred as a result of medical bills, divorces, or judgments in legal disputes over matters that do not involve the type of payments that would have been reported to the credit reporting agencies in the first place. . Records of collections, missed payments and personal bankruptcy filings remain in the credit system for seven to ten years – a period that is expected to be reduced. The system can’t work if people don’t have the ability to get up if they’ve fallen.

H. Hopp-Bruce/The Emancipator/Nadia Snopek/Adobe

The announcement by the three largest credit bureaus, Experian, Equifax and TransUnion, to voluntarily eliminate 70% of consumer medical debt from credit reports is commendable. However, black Americans are more likely to have medical debt, according to the Consumer Financial Protection Bureau, credit bureaus have poor self-monitoring records, and no one should be less able to buy a home, start a business or to obtain a job because of a previous illness or injury. The only fair solution is a federal mandate prohibiting the consideration of medical debt in any credit rating.

Other measures included in Pressley’s CREDIT (Comprehensive Credit Rating Enhancement, Disclosure, Innovation, and Transparency) bill, which passed the House but has yet to pass the Senate, include banning lenders to charge higher interest rates or otherwise make loans less affordable and riskier for borrowers solely because of lower credit scores. This approach, Wu points out, is what caused the 2008 foreclosures crisis to hit black communities the hardest.

Provide repair loans through special purpose credit programs and other measures. Those who have been unable to access credit markets due to racially disparate biases in credit reporting need an on-ramp to level the playing field.

A way is through special purpose credit programs authorized under the Equal Credit Opportunity Act, which provides low-interest or interest-free loans to homebuyers and small business owners to address systemic racism in underwriting credit.

“I call these loans ‘reparation loans’ because that’s really what they are,” says Wu. “They are a form of reparation for centuries of legalized, deliberate and intentional discrimination. And addressing these inequalities will require intentional action. »

Kimberly Atkins Stohr is the senior columnist for The Emancipator, as well as an opinion writer and senior columnist at the Boston Globe. It can be attached to kimberly.atkinsstohr@globe.com. Follow her on Twitter @KimberlyEAtkins.

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For recruitment and retention, some Minnesota companies are turning to same-day payment https://southeasternquiltmuseum.com/for-recruitment-and-retention-some-minnesota-companies-are-turning-to-same-day-payment/ Fri, 22 Apr 2022 14:59:49 +0000 https://southeasternquiltmuseum.com/for-recruitment-and-retention-some-minnesota-companies-are-turning-to-same-day-payment/

In 2020, “stimulus check” and “second stimulus check” were among the top 15 Google searches in the United States.

That same year, a Ernst and Young report estimated that in the countries of the Organization for Economic Co-operation and Development (OECD), around $1 trillion in workers’ wages lie dormant in employers’ coffers every day.

“It’s basically been an interest-free loan from an employee to an employer,” said Aaron Fuchs, commercial vice president of Ceridian, a Bloomington-based human capital management firm. To laypersons, that means “it’s a software company and the software it provides is inherently HR-centric,” Fuchs said.

Stimulus checks were a way out. Ceridian is part of a growing industry that is disrupting “payday”.

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In her role, Fuchs oversees Dayforce Wallet, one of several mobile apps on the market offering same-day payment. Also known as earned pay access, pay-on-demand, or real-time pay, the service allows employees to access their pay from their personal devices right after their shift. work.

Aaron Fuchs

Employee expectations have changed: 83% of American workers aged 18-44 believe they should have access to their pay at the end of each workday, according to a 2021 survey by The Harris Poll.

“Technology has caught up with and redefined so many other places in (people’s) lives,” Fuchs said, “They recognize that payroll is an area that really hasn’t changed since the 1980s.”

The company launched Dayforce Wallet in May 2020, expanding to Canada last year. Fuchs said it closed 2021 with nearly 1,000 customers, including large companies such as Danone and local businesses such as Lunds & Byerlys.

Since Ceridian rolled out its program during COVID to customers most in need of attracting new workers: retail, healthcare, manufacturing and hospitality.

Be competitive in the labor market

In the middle of unemployment rate and a pandemic where many public-facing workers resigned en masse, employers needed creative solutions to retain and recruit employees.

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“We really wanted to leverage (same-day pay) and offer it to our people as a way to continue to differentiate ourselves in the workplace,” said Casey Enevoldsen, vice president of employee experience at Lunds. & Byerlys. “We see that the labor force continues to decline in its growth. It just means there will be fewer and fewer people available to do the work that employers are really looking to do, so we’ve been really focused on retention while trying to attract new talent.

Many employees say getting paid sooner is a key aspect of their financial well-being. Part of their strategy has been to look at a wide range of attractive measures to retain and attract new talent, including adding telehealth to various part-time and full-time positions in retail, manufacturing and support.

Enevoldsen said adding same-day payment was an easy transition because Ceridian already manages its payroll and offered the benefit at no cost to the grocer and its employees. Under this system, individuals directly deposit their paychecks into Dayforce Wallet from which they can choose to have their funds deposited to a mobile wallet or physical debit card.

Jeanniey Walden

Jeanniey Walden

Launched in 2016, DailyPay is associated with a number of fast food franchises, as well as companies such as Mall of America and Target. (The New York-based company opened its only other U.S. office in Minneapolis for operations and customer service in 2019.)

DailyPay marketing manager Jeanniey Walden said the frequency of payments had been delayed by the introduction of payroll tax in 1943. With businesses traditionally operating their own payroll systems, it was becoming cumbersome and more expensive to perform calculations for the numbers behind an employee’s paycheque. She said there were three information systems behind them: time and attendance, pay rate, and benefits like health care, dental, 401k, and wage garnishments. Financial services companies like DailyPay extract this information from employers and automate all these processes so that workers can see in real time how much they earn and in turn access that salary.

A third party audit data from DailyPay revealed that employee turnover was reduced by 42% thanks to DailyPay.

With the financial stress of the past few years, same-day payment has been key to competing with the gig economy and supporting workers on tight budgets.

“Most of the time when (people with multiple jobs are) asked, ‘why do you work for me here? and do DoorDash?’ It’s not because they don’t make enough money here. It’s like, ‘well, I need $50 this week because I have to make the deposit on my daughter’s braces’ or whatever,” Walden said.

Most non-farm workers in the United States are paid bi-weekly (every two weeks), according to a February 2020 snapshot of the Survey of current employment statistics by the US Bureau of Labor Statistics. About a quarter are paid monthly or fortnightly.

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Overcome financial precariousness

Keziah Vulu works part-time at Lunds & Byerlys. She accessed her pay the same day only once. Intrigued by the novelty, she ordered food.

“I like that it’s there, but I don’t like it when my (bi-weekly) checks are short,” Vulu said.

She instead expressed relief for the company’s January switch to weekly pay. Employees can withdraw their pay for the day from the app, with the pay being deducted from their weekly check.

“(With the move to weekly pay), I was able to budget and get what I wanted. It seemed harder to save when I was paid bi-weekly and easier to overspend,” Vulu said.

Several employees noted the same – either never using same day payroll or rarely using it.

“If we had stayed on a biweekly (schedule), I would have been more inclined to personally jump on that bandwagon. But with the weekly, it works. It’s good enough for me,” said operations supervisor Nina Urman.

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Sara Cramer trains the employee support teams at DailyPay and also accesses same day payroll on occasion. Being paid bi-weekly, she said easy access to wages provides peace of mind around payday.

“That (need) date isn’t your whole life,” said Cramer, who said the service was more helpful in helping him understand his daily gross earnings.

The data confirms this. More recently, academic research has explored the impact of payment frequency on worker behavior. A 2019 paper cited by the Bureau of Labor Statistics found that a causal relationship between frequent payments and household spending reads to help navigate personal finances. Earlier in April, the Consumer Research Journal published an article by business professors Wendy de la Rosa and Stephanie M. Tully and noted that “higher payment frequencies reduce consumer uncertainty about whether they will have enough resources throughout a period.”

But in addition to allaying potential worries, financial services companies say same-day payment eliminates the need for payday loans, credit cards and other traps people fall into when they run out of money. money.

“DailyPay is used to complement and connect in really unique and different ways,” Walden said.

One example she noted: “As gas prices soared, many people who, again, normally had enough money, ran out of gas to physically get to work… They had no way to get to work if they didn’t use DailyPay to get gas for their car for the next two days to get them through to payday until their check pay arrives.

According to the Consumer Financial Protection Bureau, “Before the COVID-19 pandemic, consumers consistently paid more late fees on their credit cards each year, peaking at more than $14 billion in 2019. Late fees assessed by issuers have decreased to approximately $12 billion. in 2020 given record payout rates and public and private relief efforts. Even during the pandemic, late fees accounted for more than a tenth of the $120 billion consumers pay each year in interest and credit card fees. In 2021, late fees have increased again.

In March, a coalition of 19 lawyers urged the Consumer Financial Protection Bureau for ensure that lenders who buy now and pay later do not engage in practices that trap consumers in a cycle of indebtedness In a letter, they expressed concern that the industry has experienced “rapid and exponential growth” during the COVID-19 pandemic.

DailyPay says 88% of users credit the app with reducing or eliminating their use of payday loans, and an average of $292 is saved each year among people who incur overdraft fees, per a partnership report.

Urman said the same-day pay benefit provides peace of mind and a good safety net.

“I know if your car breaks down or an unexpected bill comes in, or even a vacation, that sort of thing, it’s really good for people to be able to do something right away without adding credit card debt or borrow money like payday loans where they get hit with a lot of interest,” Urman said. “It can be huge. So even though for me it might not be a weekly need or monthly, it’s good to know that if something happens, you have some sort of backup system where you don’t have to put yourself in an extra bad position.

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Looking for a tax-free loan? It’s Probably Not Worth It, Experts Say | https://southeasternquiltmuseum.com/looking-for-a-tax-free-loan-its-probably-not-worth-it-experts-say/ Mon, 18 Apr 2022 09:15:00 +0000 https://southeasternquiltmuseum.com/looking-for-a-tax-free-loan-its-probably-not-worth-it-experts-say/

Last-minute declarants endeavor to send their declarations to the Internal Revenue Service by tax year 2021 deadline Monday, April 18 — and are probably looking forward to a big check via their tax refund.

Some tax firms or other lenders may offer the option of accessing these funds earlier, in the form of a tax refund loanalso known as a repayment anticipation loan.

Regulatory bodies and advocacy groups warned of the potential drawbacks of loans, especially those that come with high fees or high interest rates. Personal finance experts generally do not recommend them.

Here’s what you need to know about loans this tax season.

What is a tax-free loan?

A tax refund is, quite simply, an advance on your tax refund, said Matt Schulz, chief credit analyst at LendingTree.

It’s a way to borrow against your tax refund to access funds immediately: borrow the amount from a lender and give them the refund when you get it from the IRS.

“Unlike a lot of loans, it’s not necessarily something you’re looking for,” Schulz said.

Tax refund loans are usually offered by a tax preparation company, Schulz said. You will not find them in your bank.

What are the advantages and disadvantages?

The advantage of a repayment anticipation loan is quite simple: you have immediate access to your repayment amount, instead of waiting for the days or weeks it may take to obtain the funds from the IRS.

The wrong side? “It can end up costing you money,” Schulz said, in the form of interest or fees.

Some tax firms will offer you a tax refund loan at no cost, Schulz said. But, you will have to pay the company to do your taxes for you.

“Even with a 0% loan, there will always be a minimum that you will pay to prepare your taxes,” he said. “So if you’re someone who’s already planning to do your taxes, maybe it’s not that bad.”

Teresa Murray, director of the US Public Interest Research Group’s consumer watchdog office, says the cost may outweigh the benefits.

“We really urge people to avoid any type of prepayment anticipation loan,” she said. “Anything you borrow against a refund you haven’t gotten yet…it’s just bad news written all over the place.”

the North Carolina Consumer Council warns “think again” to anyone considering a loan against their tax refund.

“While getting a tax refund advance may seem tempting, these loans are actually payday loans for tax returns, and you should avoid them as much as possible,” according to advice from the council on its website. . “The full amount must be repaid, as with any other loan, even if your repayment is less than expected or ends up not being repaid at all.”

When can I expect to get my refund?

IRS issues more than nine out of 10 refunds in less than three weeks, according to its website. Taxpayers who filed their returns electronically will get their refunds faster than those who mailed their tax forms.

And the department is handing out refunds faster and faster, Murray said. Now, some e-filers can expect to see the funds in their bank account within days.

“If you file electronically, you can get your money typically in four to six days,” she said.

North Carolina taxpayers may get their tax refund from the state more slowly, but the upside is that a delay in accepting returns this year was due to a legislative reduction in the individual tax rate.

Should I consider a tax-free loan?

Schulz said if you really need the money — and read the terms carefully — a tax refund loan can be an alternative to riskier ways to fill your bank account.

“Emergencies happen: job loss, medical emergencies, whatever the case,” he said. “(In that case), there are worse things you could do than a tax refund.”

And assuming you’ve done your taxes correctly, he said, a tax refund loan is a secured loan, with your actual refund serving as collateral. This makes it much less risky than, say, an unsecured payday loan with an exorbitant interest rate.

Murray, on the other hand, cautions against lending under any circumstances. She suggests holding on until you get your refund, especially since it might not take very long if you filed electronically and set up direct deposit.

“If you’re short on money…find a friend or relative to borrow money from for a few days,” she said. “Don’t go the prepayment loan route because they’re just ridiculously expensive…you’re paying for your own money.”

As this year’s tax filing season ends without the threat of a government shutdown going forward, that could make these loans even riskier, according to the North Carolina Consumers Council.

“Frequent federal government shutdowns could make these types of loans more attractive if you want to get your money back quickly, which can complicate things. Remember that a delay in getting your repayment will not be considered by the lender and will not release you from any obligation to repay the loan on time,” its website states.

Schulz added that major tax firms — like H&R Block or Jackson Hewitt — only accept applications for tax refund loans during a certain period, often between December and February. So, for these filers, the loan application window may already be closed.

And Murray had another piece of advice for any registrants who haven’t signed up yet: start early next year.

“When you’re in a rush, you’re more likely to not pay attention,” she said. “Any time you have the words ‘not careful’ and ‘IRS’ in the same sentence, that’s not a good thing.”

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©2022 The Charlotte Observer. Visit at charlotteobserver.com. Distributed by Tribune Content Agency, LLC.

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Fix your finances to save your customs clearance before it’s too late https://southeasternquiltmuseum.com/fix-your-finances-to-save-your-customs-clearance-before-its-too-late/ Wed, 13 Apr 2022 18:30:51 +0000 https://southeasternquiltmuseum.com/fix-your-finances-to-save-your-customs-clearance-before-its-too-late/

So close to tax day, we’ve all had a chance to take stock of our income and debts and examine our financial situation in a faltering economy. This year more than most there is cause for concern. Inflation is almost certainly worse than the official numbers suggest (and the official numbers are pretty bad). The supply chain remains broken and car prices are exorbitant. We are in a double crisis of rents and housing, and gas prices continue to soar. The drums of war are beating louder and louder as the Russian invasion of Ukraine enters its second month. If we’re at a breaking point, you have to ask yourself how resilient your finances are. For permit holders, a sudden downturn can mean more than a bad year. Unpaid bills can kill a breadwinner.

“During security clearance background checks, debt is looked at for a variety of reasons,” says Ashley Morganlawyer specializing in debt and bankruptcy in the north Virginia. She explains that referees want to know if you are living beyond your means. “If someone has debt that they use to supplement their income for extravagant purchases, that creates a higher risk situation.” If the debt is large enough, a secrets keeper is more likely to be compromised. Moreover, addiction and debt often go hand in hand.

“Financial considerations” are by far the main reason why the Ministry of Defense refuses or revokes a clearance.

IMMEDIATE ACTIONS

To eliminate debt, you must be in control of all of your financial affairs. The first step in any personal financial recovery is to create a spreadsheet of every debt you have, the balance, interest rate, due date, and payments due. While you’re at it, you can also add the customer support line for each card. Credit card rewards programs are very enticing and applying is easier than ever. This means you might have more credit cards than you think, many of which have annual fees.

It would be foolish to rely solely on email reminders for your payment due dates. Spam filters, after all, can sometimes be overzealous. Once you’ve created your spreadsheet, add each due date to your calendar, set them to repeat every month. One rule you can apply: Your calendar is sacred space. The only things you should ever add are things that will happen for sure. This meeting at 3:00 p.m. Thursday. Your child’s volleyball match on Saturday noon. And your bills. Nothing in this world is more certain than a credit card company noticing that you are a day late on a payment.

There is no excuse for accidentally incurring late fees. Do you really want to give to a bank After money? They’re already charging you 17% interest on the coffee you bought at Starbucks last year. If you are heavily in debt, on the day a bill is due, you must have more money in the bank than the minimum payment. Also, each month the amount you owe must be less than the previous month. This basically means looking at your credit card statements, figuring out exactly where your money is going, and cutting those expenses where possible. The Total Money Makeoverby Dave Ramsey, is an excellent book designed to help you do just that.

PAY OFF THE DEBT

Kristina Guardado, financial coach and founder of Elite Empowerment Coaching, explains that when it comes to eliminating debt, a one-size-fits-all approach doesn’t necessarily work. “Some people are motivated and will make a lot of sacrifices to get rid of their debt as quickly as possible. Others may need motivation and enjoy quick wins. There is a debt repayment strategy for everyone.

It offers four methods to pay off the debt.

The snowball method is to pay off one debt with the lowest balance first while making minimum payments on everything else. “Once the first lowest balance is paid, you roll that payment into your next lowest balance,” she says. “It can be good for someone who needs motivation. You get quick wins and boost motivation to keep going! »

The Avalanche method means first paying off your debt with the highest interest rate while making minimum payments on everything else. Pay off the balance at the highest interest rate and incorporate that payment into your next balance at the highest interest rate. She says this method is good for those with high-interest credit cards or a payday loan. The goal is to save money otherwise spent on interest.

The highest monthly payment method is to pay off your highest monthly debt payment first while making minimum payments on everything else. Pay off the bill with the highest monthly debt and roll that payment into your next highest monthly debt payment. “This can work well for someone who is cash tight as they struggle to get rid of their highest payout. This finally frees up that money to start using it for other purposes.

The “Debty Downer” method means paying off any debt you have that makes you angry every time you see it. You pay that first while making minimum payments on everything else. Then re-evaluate those strategies again and find the next best one to pay. “It can work well for someone who is in debt from a divorce, medical surgery, or any other debt that brings up bad feelings. Paying it back allows them to put this behind them and move on with their lives,” she says.

GET LOWER INTEREST RATES ON DEBT

Sometimes the high interest rates and the amount of debt can be overwhelming. As we learned last month, gasoline prices sometimes double overnight. Sometimes $100 spent on groceries only buys $85 worth of food. Todd Christensen, financial advisor approved by the AFCPE and author of Everyday money for everyday people, says that if debt begins to overwhelm you, contact your lender or credit card company and try to negotiate a better interest rate. This will allow more of your monthly payment to go toward the balance owing. You can also contact a non-profit credit counseling agency.

“Each credit card statement contains such a recommendation for consumers having problems with their debts,” he says. “Credit counseling agencies work with your current creditors to lower their interest rates and get you out of debt in five years or less. Because they work out new agreements with your creditors, you don’t suffer the negative effects of other tougher options.

Beware of for-profit debt settlement companies. “They suggest they can get you out of 50% of your debt. Unfortunately, the process also leads to an even worse credit score, further jeopardizing security clearances,” he says. They can also charge exorbitant fees, which compounds your problems.

Debt consolidation loans and balance transfer offers can also be dangerous, as they are not debt elimination strategies. Rather, they are reshuffling of debts. “Too many consumers take out such loans and lines of credit to pay off their credit cards only to find that they haven’t addressed the reasons they got into debt in the first place. Many continue to overspend and find that they pushed their original credit cards to their limits in a year or two, doubling their debt and financial problems,” says Christensen.

No matter what you do, do Something. “Doing nothing is not an option,” says Christensen. “The creditors have not forgotten the debts you owe them. Many wait until a month or two before the statute of limitations expires to seek judgment against you in court, with which they can seek to garnish your wages. If you end up in court, you will need an experienced lawyer.

BANKRUPTCY IS AN OPTION

Bankruptcy should be your option of last resort, but it is an option, especially if you have insurmountable debt. “It’s better than missing payments and being delinquent,” says Ashley Morgan, who adds that she’s brought clients into her law firm specifically because of concerns raised during early investigations. security clearance. “Often, we file for bankruptcy — both in Chapter 7 and Chapter 13 — to help individuals deal with their debts and obtain or maintain their security clearances. Bankruptcy is often considered better than having an unpaid debt that you cannot pay.

A Chapter 7 bankruptcy usually takes three to four months. “It eliminates a lot of debt and gives someone a quick fresh start,” she explains. Alternatively, a court may offer a Chapter 13 bankruptcy, which is generally a three to five year payment plan. “It helps to consolidate someone’s debts into one payment and settle them in a reasonable way. Once the payment plan is in place, investigators often confirm that payments are made on time. »

Debt can be terrifying when money is tight, and money is getting tighter than ever. Take stock of your debts, watch your spending, reduce your interest rates when possible, and establish a repayment plan. Getting your financial affairs in order is perhaps the most important thing you can do right now to preserve your security clearance and weather the economic challenges ahead.

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