Chandlery sales – Tysbvi http://tysbvi.com/ Fri, 18 Nov 2022 17:03:06 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://tysbvi.com/wp-content/uploads/2021/10/icon-2021-10-18T084030.182-120x120.png Chandlery sales – Tysbvi http://tysbvi.com/ 32 32 Studies show gains versus hunger lost with tax credit ending – The 74 https://tysbvi.com/studies-show-gains-versus-hunger-lost-with-tax-credit-ending-the-74/ Fri, 18 Nov 2022 17:03:06 +0000 https://tysbvi.com/studies-show-gains-versus-hunger-lost-with-tax-credit-ending-the-74/ Support The 74’s end of year campaign. Each donation will be matched dollar for dollar. An article in the Journal of the American Medical Association in October confirmed previous research that food insecurity increased significantly after the monthly Federal Child Tax Credits expired on January 15, 2022. The study looked at the period between January […]]]>

Support The 74’s end of year campaign. Each donation will be matched dollar for dollar.

An article in the Journal of the American Medical Association in October confirmed previous research that food insecurity increased significantly after the monthly Federal Child Tax Credits expired on January 15, 2022.

The study looked at the period between January and July of this year in a series of national surveys and found an almost 25% increase in food inadequacy, affecting black, Hispanic and Indigenous families the most.

The article published October 21 in JAMA, “Association between expiration of child tax credit advance payments and food insufficiency in US householdsinvolved a cross-sectional study of repeated surveys of a nationally representative sample of 592,044 US households.

“The results of this study suggest that loss of monthly payments (child tax credit) was associated with an increased prevalence of households with children in the United States reporting sometimes or often not having enough to eat, a condition associated with adverse health effects across the lifespan,” the paper concludes.

Monthly American Rescue Plan Act (ARPA) Child Advance Tax Credit (CTC) payments were administered to more than 35 million households with children in the United States between July and December 2021. Figures from the Center on Budget and Policy Priorities show that the credits benefited about 2.37 million children in Ohio. Tax credits were associated with a substantial decrease in food insufficiency, according to the study.

Under ARPA, three major changes to the credit have been enacted for the 2021 tax year: an expansion of eligibility to include families with very low or no income; an increase in credit amounts from a maximum credit of $2,000 per child per year previously to $3,000 per child 6-17 per year and $3,600 per child under 6 per year; and provision for half of the loan in the form of a monthly advance between July and December 2021.

As a result of these changes, about 92% of families with children were eligible to receive $250 to $300 per month per child between July and December 2021, according to the study. National data shows that parents report spending monthly CTC payments on food, utilities, rent, clothing and education costs, according to the article.

These monthly payments expired in January 2022 after the US Congress failed to extend the policy.

In a series of surveys conducted by researchers just before the CTC expired, the unadjusted household food insufficiency was 12.7% among households with children.

In late January and early February 2022, following the first missed monthly CTC payment, 13.6% of households with children reported food insufficiency, rising to 16% in late June and early July 2022.

“Given the well-documented associations between the inability to afford food and poor health outcomes across the lifespan, Congress should consider prompt action to reinstate this policy,” the JAMA article recommended.

These latest findings mirror previous research done by the nonpartisan National Research Group at the Brookings Institution and published in April 2022 in a report titled “The impacts of the 2021 child tax credit expansion on employment, nutrition, and the financial well-being of families.

Brookings researchers said the temporary tax credit expansion “has unprecedented reach” and lifted 3.7 million children out of poverty by December 2021.

“The expanded CTC significantly improved food security and healthy eating among eligible people,” Brookings found.

Moreover, according to this study, about 70% of CTC recipients who were negatively affected by inflation said that the payments helped them better manage rising prices.

Besides increasing food security, other areas Brookings said tax credits help families include statistically significant declines in credit card debt compared to those who were not eligible; reducing reliance on expensive financial services such as payday loans and pawnbrokers, as well as reducing blood plasma sales rates; increased capacity to manage emergency expenses and strengthened family emergency funds; and a significant drop in evictions.

Brookings also found that credit enabled families of color to make significant investments in their children’s long-term educational outcomes. Black, Hispanic and non-white households were more likely to use the credit for child care and education expenses, Brookings found.

South Dakota Projector is part of States Newsroom, a network of news outlets supported by grants and a coalition of donors as a 501c(3) public charity. South Dakota Searchlight maintains editorial independence. Contact editor Seth Tupper with any questions: info@southdakotasearchlight.com. Follow South Dakota Searchlight on Facebook and Twitter.


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Credit card balances, burden, delinquencies and collections in the third quarter: consumers are still in good shape with their cards https://tysbvi.com/credit-card-balances-burden-delinquencies-and-collections-in-the-third-quarter-consumers-are-still-in-good-shape-with-their-cards/ Tue, 15 Nov 2022 22:41:15 +0000 https://tysbvi.com/credit-card-balances-burden-delinquencies-and-collections-in-the-third-quarter-consumers-are-still-in-good-shape-with-their-cards/ Credit cards are primarily a payment method, paid monthly. The importance of borrowings has diminished over the years. By Wolf Richter for WOLF STREET. Credit card balances include balances that accrue interest and balances that are paid in full by the due date such that no interest accrues. Many Americans use credit cards only as […]]]>

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

By Wolf Richter for WOLF STREET.

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

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

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

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

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

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

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

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

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

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

Decrease in the amount of credit card debt.

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

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

Debt burden as a percentage of disposable income.

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

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

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

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

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

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

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

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Is a payday advance from a bank better than a personal loan? https://tysbvi.com/is-a-payday-advance-from-a-bank-better-than-a-personal-loan/ Sat, 12 Nov 2022 12:32:34 +0000 https://tysbvi.com/is-a-payday-advance-from-a-bank-better-than-a-personal-loan/ Image source: Getty Images We’ve all come across an unexpected expense from time to time. Key points 60% of Americans couldn’t cover a $400 emergency expense without going into debt. If you need cash fast and your bank offers payday advances, it might be worth looking into. A personal loan has other advantages, however, such […]]]>

Image source: Getty Images

We’ve all come across an unexpected expense from time to time.


Key points

  • 60% of Americans couldn’t cover a $400 emergency expense without going into debt.
  • If you need cash fast and your bank offers payday advances, it might be worth looking into.
  • A personal loan has other advantages, however, such as a higher borrowing limit and a lower interest rate.

Many of us have been there. You had a car accident, and now you have to pay the mechanic to fix it. This unexpected expense will cost you a few hundred dollars, and like 60% of Americans, you are not able to cover it with your savings. Moreover, you only have money left for the bare necessities in your current account, and your next payday is several days away. What should you do?

You have a few options in this situation. Read on to learn more about bank payday advances versus personal loans, and how to decide which is right for you.

What is a salary advance?

A payday advance loan from a bank or box is called a small loan. These are loans of an amount generally between $100 and $1,000, granted by a bank to account holders. The intention is to give consumers an alternative to predatory payday loans (see below) when they are in a financial bind. If your bank offers them, you’ll get the money you need quickly and pay it back from your next paycheck via direct deposit, or over a period of weeks or months. You will have to pay a fee (either a fixed dollar amount or a small percentage of what you borrow) and interest for the service.

You may soon hear more about payday advances; a Bloomberg Law report in early October 2022 noted that federal regulators want banks to be able to offer them, but banks need more guidance from regulatory agencies moving forward. Personal loans, on the other hand, are already reliably available for your emergency borrowing needs.

What is a personal loan?

A Personal loan is a fairly easy way to borrow a lump sum of money. They usually come with lower interest rates than many other quick cash solutions, like credit cards or payday loans (and certainly lower than payday loans). However, if your credit is not in top shape, you may not be eligible for the best personal loan rates available.

Personal loans are generally in the amount of $1,000 to $100,000, and can often be funded fairly quickly after your application is approved. In some cases you can get the money the same day or the next day. Is there another way to borrow money quickly? Yes, but you probably want to stay away.

Try to avoid payday loans

Although it may seem counterintuitive (after all, there’s “payday” in the name), it’s a good idea to avoid payday loans. And depending on where you live, they may be illegal in your area; they have been banned in 13 states and the District of Columbia. Payday loans are small, short-term loans of $500 or less, usually with a very high interest rate.

As of 2022, typical payday loan rates range from 28% to 1,950%. These loans often trick consumers in a cycle of debt from which they cannot easily escape. Can’t repay your loan on your next payday? That’s fine, the lender will turn it into a new payday loan for you! How nice of them. Your best choice is probably a payday loan or a personal loan.

How do you choose?

There are a few things to consider when choosing between a payday advance and a personal loan.

How much money do you need?

A payday advance loan, if you can get one from your bank or credit union, is probably best for borrowing smaller amounts. If your auto repair bill is $350, but the smallest personal loan amount you can take out is $1,000, that’s not ideal. If your surprise expense is larger, you’ll likely get a better interest rate with a personal loan (plus payday advances from your bank may be capped at $500).

How fast do you need it?

If you can wait a few days and have good credit, you may be better off with a personal loan – again, because of interest rates. That said, if your bank offers payday advance loans, they might approve you fairly quickly if you’re an existing customer in good standing. It has already registered you and can access your finances in the form of your bank account(s). Plus, your bank can easily send the money you borrow directly to your account.

How long do you need to pay it back?

This is where a personal loan probably has the advantage. You will have more time to repay a personal loan (months to years) than a payday loan (weeks to months). But again, a lot depends on the amount of money you need to borrow.

Payday advance loans and personal loans have their place, and if you ever get into trouble and need to borrow a relatively small amount of money, both are worth considering. However, it is definitely in your best interest to avoid payday loans.

The Ascent’s Best Personal Loans for 2022

Our team of independent experts have pored over the fine print to find the select personal loans that offer competitive rates and low fees. Start by reviewing The Ascent’s best personal loans for 2022.

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Lefsetz Letter » Blog Archive » Takeoff https://tysbvi.com/lefsetz-letter-blog-archive-takeoff/ Wed, 02 Nov 2022 20:56:18 +0000 https://tysbvi.com/lefsetz-letter-blog-archive-takeoff/ If this guy was white… Most people have no idea what’s going on behind the discs. Despite the bluster, the silver flash, the real life of these rappers is not depicted. They are in danger. In an underground economy. It’s the rock and roll of old. A cash business, but much more dangerous. Not that […]]]>

If this guy was white…

Most people have no idea what’s going on behind the discs. Despite the bluster, the silver flash, the real life of these rappers is not depicted.

They are in danger.

In an underground economy.

It’s the rock and roll of old. A cash business, but much more dangerous.

Not that I knew that much until I read Joe Coscarelli’s book, “Rap Capital: An Atlanta Story”: https://amzn.to/3Ns7PMl and spoke to him for the podcast: https ://bit.ly/3haAadK

First, we have a huge incarceration problem in America, which disproportionately targets black men. It’s amazing how many of these eventually famous rappers go in and out of prison. And if you think racism is outdated, you need to be on the Supreme Court. There are places in Georgia where rappers are on their toes due to notorious white police crackdowns on petty crimes.

As for the pay…

Everything looks simple from the outside. There are record company royalties and concerts. But it’s much more complicated than that. There’s tons of cash gigs the IRS not only misses rich CEOs but also rappers, who themselves are sometimes incredibly rich because of this economy, where you show up at a club to rap for follow and… you can do several concerts per night. That’s another amazing thing about Coscarelli’s book, how rich some of these rappers are.

Not that a career is guaranteed. It’s one thing to have a hit, it’s another to maintain it.

And it’s not just the underground economy that’s involved, but also the Fortune 500. They know that rappers have the most credibility, not to mention popularity, with the target audience, so they go into business with them. . It used to be that you had to have a certain number of visits before companies called you, but now they’re involved from the start.

And so many acts are disposable. And find themselves where they come from. Never mind the fact that many do not.

And while rockers and old swaggers are still trying to figure out the internet, it was embraced by the hip-hop community right from the start. Rappers knew that you had to give to receive, like a drug dealer. They knew it was about getting the big money, not the little one. Ergonomic Mixtapes. These recordings endeared them to an audience that bonded with them. There was a lot of money on the road, if you had fans.

And cultural.

And, culture involves a lot of posturing and violence.

And white people and the mainstream media might report it, but they don’t denounce it.

It’s taken for granted that rappers get shot. Why?

Well, we could go to the source and ask why black people don’t have more opportunities. Coscarelli writes about college graduates who end up doing manual labor. But affirmative action is taboo, because someone might gain an advantage that has been incorporated into a majority group. I mean you have to attack the problem at some point.

And let’s be clear, it’s not what you learn at Harvard or Yale, it’s the people you meet, who are part of your network. JD Vance was a hick until he went to Yale Law School, built relationships, worked with Peter Thiel, and ended up writing a twisted book he used as a platform to run for Senate from Ohio. Where is the concomitant advantage for blacks?

Believe me, the upper middle class knows all the tricks. But even the middle class has no idea, that the best educational institutions are blind to need, and if you can get in and you’re broke, you don’t have to pay a dime.

America’s information deficit, right there.

So think of all the people who profit from rapping. White-run labels, TV and streaming companies, the aforementioned Fortune 500, but none of them lift a finger to counter the violence in the culture, they don’t even bother to speak out against it.

This is racism incarnate.

As for George Floyd… All the companies that have supported black people… that was then and this is now, the end result is far from major, it’s the same as ever.

So if a white rapper had been shot, there would have been front-page stories about his family, their devastation. And there would be investigative articles in the media asking how this could happen. How this honest citizen of good family got suffocated. Yeah, they were coating the background of the deceased, were they reading an obituary where they said the person was an arrogant punk?

And all the government leaders would come together and talk about action.

Meanwhile, where are the stories about Takeoff’s family? Where is the deep dive into his past life?

AND WHERE IS THE OUTRAGE!

We can start with gun control… But it seems to go the other way. I would think twice before moving to Texas, where anyone can carry a gun without a license. Rave me about the supposed economic benefits all day long, they don’t mean much when you’re dead.

The truth is that white people and the mainstream community don’t care if another black person dies. Just one less mouth to feed. Yeah, that’s how they see it, that black people are taking it, always wanting more, the government has to stop supporting them.

While they’re at it, why don’t they take out all that money the government disproportionately gives to red states, huh?

And an advanced society watches over those at the bottom of the economic ladder. In most western countries. But welfare was stifled under the Clinton administration and the idea that black women just have babies and are supported by the government is wrong. You think someone should take your money, that you should pay less tax, but when there’s a natural disaster, you want federal help right away.

Yes, there must be a scapegoat. And blacks are number one.

Even if their schools are not up to standard. The right says that you have to choose the school, close the bad schools, only there is not enough room in the good schools for all the disadvantaged! And in truth, it is only a ruse to advance the cause of religious schools, which are not free, and if you are not a believer…

And don’t equate every rapper with Kanye. They’re not that rich and they’re not that crazy. They are just trying to survive.

So we have to take the guns off the streets. Enough of throwing our hands in the air. When your kid gets shot, you go crazy, and someone else’s kid?

And how about a denigration of violence. Why are gangs and violence portrayed as cool? A lot of kids join gangs not because they’re cool, but just to survive. And since the police are ineffective, the gangs and others take the law into their own hands. And since opportunities are scarce, kids sell drugs, for that quick cash, I mean how long are they going to live anyway?

That’s what amazed me in “Hoop Dreams”. They threw a big birthday party for the player because living to be eighteen is such a feat. Do we feel the same as white people? That just staying alive is something to celebrate?

And often they find the perpetrators and lock them up, but that’s not really a deterrent, because they don’t think they have much of a future to begin with. And honor and image are everything, as if we were living in the feudal past.

All those talent agencies and apparel companies can drop Kanye like he’s hot, but how about dropping those involved in violence. Believe me, if you take away the few opportunities, it will change the culture.

As for clubs and strippers and making it rain…

Everyone can choose how they want to live their life but we flood these great athletes with money that they have no education on how to spend and then they blow it up and end up broke and eventually dead with CTE. But gamers are disposable, just like rappers. Hell, most NFL players don’t even have guaranteed contracts! Get hurt and you’re out. We don’t care about you. Life is hard. Meanwhile, the bad actor billionaire owner continues to rape and plunder not only in business, but also in his personal life.

It’s a way to demonstrate your status, by earning money and spending it.

Now, in truth, on TikTok there are all these videos that talk about money, about the economics of buying a new car, about investing. Maybe newcomers will see them, but we don’t even teach economic skills in school, because if we did, salespeople couldn’t laugh at these customers. Dollar stores, payday loans… They’re obnoxious, but if you’re broke, sometimes you don’t have a choice.

Somehow, America has flipped, and it’s white people who are at a disadvantage. What’s a poor boy to do? Don’t play in a rock and roll band, BUT BECOME A RAPPER! It is one of the few potentially well-paying jobs for an underprivileged youth, other than drug dealing.

But we demonize these people, because we take advantage of their backs.

Come on, black people are way above their weight when it comes to culture. And, unfortunately, this culture of gun violence impacts not only them, but also white people, BECAUSE IT’S SEEN TO BE COOL!

Let me tell you, when you’re dead, nothing is cool. Finito. It’s finish. The challenge is to stay alive. Shit, the government should give a million dollars to every rapper who hits 40. Better yet, a guaranteed income for all, including blacks.

But no one wants to PAY FOR IT! I don’t understand, you want to live in Venezuela? I’ve been there, the wealthy people live in the hills in houses surrounded by concrete walls topped with barbed wire.

You think you are immune, but you are not. We live in a big society. And you are part of it, and you are vulnerable. If you don’t take care of your siblings, raise them, it will impact you negatively.

But then you have all those executives who say they’ve made their billions and don’t recognize that without customers they’d have NOTHING!

Consumers are kings. But that’s not how our society sees it. We worship the rich and criticize the poor, ignoring what goes on in their brains.

And when it comes to hip-hop, it’s all about creativity. You don’t get to the top by accident. So why can’t we recognize it, except in award shows that nobody watches anyway?

Certainly, everything fades almost instantly these days. But in the aftermath of Takeoff’s death, I haven’t seen any official elected commentary on it. I didn’t see any outcry. At best, there was a shrug.

And that’s not right.

Something has to give. And if you don’t fix the underlying problem, it will affect you.

Come on, is anyone outraged that this guy was shot?

I suppose not.

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How to prepare for a recession if you are -2- https://tysbvi.com/how-to-prepare-for-a-recession-if-you-are-2/ Sun, 30 Oct 2022 13:52:00 +0000 https://tysbvi.com/how-to-prepare-for-a-recession-if-you-are-2/ People should also be aware of the risks of “old-school predatory lending,” Williamson added, including payday loans, auto-title lenders and rent-to-own businesses. Payday lenders in particular tend to settle in communities of color, Williamson said, and are marketed as easy ways to get money. Often these loans come with high rates. “They have an established […]]]>

People should also be aware of the risks of “old-school predatory lending,” Williamson added, including payday loans, auto-title lenders and rent-to-own businesses. Payday lenders in particular tend to settle in communities of color, Williamson said, and are marketed as easy ways to get money. Often these loans come with high rates.

“They have an established presence in the community, and in many ways low-income consumers need to look beyond that to determine if there are other, more sustainable ways to get a small loan,” said Williamson.

When credit becomes harder to come by during a recession as lenders limit borrowing, people will be tempted to turn to abusive products and worse terms because it seems like whatever is available, Friedline said.

Credit card issuers previously reduced credit limits during the COVID-19 pandemic and the Great Recession, a measure that may help them avoid losses from consumers unable to repay debts, according to a June report from Consumer Financial Protection Bureau. However, these discounts can dramatically increase usage, or consumers maxing out their cards, which in turn can lower credit scores and make it even more difficult to borrow.

“People on low incomes are short on money, so you may know you’re being scammed, but what other options do you have?” Friedlin said.

Still, she said to watch out for promises of “a new product you’ve never heard of before that’s positioned as something that’s really going to help you,” like payday advances offered by an employer, which may come with a fee. and have worried some consumer advocates.

Given these vulnerabilities, Friedline added, policymakers could put in place more regulations and consumer protections, like interest rate caps on small loans. “The exploitation that we think is likely to happen doesn’t have to happen,” she said.

Of course, not all forms of support are scams. There are government programs that will help cover or reduce utility bills, for example. Consumers can sign up for Federal Trade Commission email alerts to stay up to date on money-saving tips and scammers taking money.

People can contact the Consumer Financial Protection Bureau with complaints about financial services, Friedline noted. The agency also offers several guides for those looking to buy a home, maintain their financial health in emergencies and disasters, or plan for retirement.

Collins, of the University of Wisconsin-Madison, noted that it helps to keep an open dialogue with family members about the financial situation. It’s normal to feel stressed about your budget, but there’s no point in ignoring the problems.

“The more people can talk about this stuff, whether it’s virtually or with friends and families or others — just so it’s less taboo — that’s important,” Collins said.

-Emma Ockerman

 

(END) Dow Jones Newswire

10-30-22 0952ET

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

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What to do if you’re stuck with a payday loan | Opinion https://tysbvi.com/what-to-do-if-youre-stuck-with-a-payday-loan-opinion/ Fri, 28 Oct 2022 10:46:38 +0000 https://tysbvi.com/what-to-do-if-youre-stuck-with-a-payday-loan-opinion/ By Jessica Love Have you ever had your car or truck stuck in the mud; and the harder you try to get out, the deeper your tires sink? I have. So, I know from experience: unless you have the luxury of waiting for things to dry, you’re going to need some help – a push […]]]>

By Jessica Love

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

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

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

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

Now imagine that the vehicle you are thinking of represents your family’s financial health and the process of “no more blocking” as a result of choosing the option to solve your short-term problem yourself – instead of asking for money. help or not to think of you had other options – represents a payday loan.

The “solution” then becomes a bigger problem to solve than the original problem.

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

Consumer rights are worthless without enforcement | Opinion

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

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

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

What if there was another route?

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

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

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

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

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

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

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

Jessica Love is Executive Director of Prosperity Indiana, a statewide membership organization for individuals and organizations that strengthen Hoosier communities. She wrote this commentary for the Indiana Capital Chronicle, a sister site to the Pennsylvania Capital-Star, where he first appeared.

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Record number of Americans have bank accounts, government says https://tysbvi.com/record-number-of-americans-have-bank-accounts-government-says/ Tue, 25 Oct 2022 15:02:00 +0000 https://tysbvi.com/record-number-of-americans-have-bank-accounts-government-says/ By KEN SWEET, AP Business Writer NEW YORK (AP) — The number of Americans without bank accounts fell to a record low last year as the proliferation of online-only banks and an improving economy bring more Americans in the traditional financial system. A new report from the Federal Deposit Insurance Corp. published on Tuesday revealed […]]]>

By KEN SWEET, AP Business Writer

NEW YORK (AP) — The number of Americans without bank accounts fell to a record low last year as the proliferation of online-only banks and an improving economy bring more Americans in the traditional financial system.

A new report from the Federal Deposit Insurance Corp. published on Tuesday revealed that 4.5% of Americans – representing about 5.9 million households – did not have a bank account in 2021. This is the lowest level since the FDIC began tracking data in 2009 and down 5.4% Americans in 2019 survey data.

The decline in unbanked households can be partly attributed to the coronavirus pandemic. States and the federal government handed out trillions of dollars in stimulus to Americans after COVID-19 shut down the US economy in March 2020. Benefit programs largely needed a bank account to send funds quickly to people affected.

“During the pandemic, consumers opened bank accounts to quickly and securely access relief funds and other benefits,” Acting FDIC Chairman Martin J. Gruenberg said in a statement. .

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But the FDIC attributed most of the improvement to the strength of the economy in 2021, as restrictions related to the coronavirus pandemic largely expired and the unemployment rate was low.

Black and Hispanic households remain much more likely to not have a bank account, though those numbers are improving. About 11.3% of black households do not have a bank account, up from 13.8% two years earlier. Among Hispanic households, that figure fell from 12.2% to 9.3%.

The top reasons someone would choose to be unbanked were unchanged from previous surveys. One in five unbanked households said not having enough money to maintain an account was the main reason they went without one – a sign that being unbanked remains a problem in their lives. economic inclusion.

Other households had privacy and trust issues with banks. Large companies like Amazon have tracked consumer data through credit card usage for some time, but banks also profit from this data.

Americans outside the traditional financial system face many hurdles with their day-to-day finances, which is why policymakers are pushing so hard to get unbanked households to open a savings or checking account. Cash check services, utility payment services, rent payments without a bank account often come with fees, money that someone with a bank account would not be subject to.

There has also been a growing number of businesses that no longer accept cash as a form of payment, an issue that several state legislatures have begun to address.

Some states and cities required cash to be accepted before the COVID-19 pandemic, such as New Jersey, Massachusetts, San Francisco and Philadelphia. However, at least seven states have passed such bills since the pandemic began, mostly in response to the growing number of contactless businesses following CDC recommendations to limit cash use for fear of spreading the virus.

Delaware, New York, Oregon, Arizona, Colorado, Connecticut and Rhode Island have all passed bills requiring businesses to accept cash, according to data from the National Conference of State Legislatures. More than a dozen states have introduced cash-mandated bills since 2020. At least three bills in the Republican-majority states of Florida, Mississippi and North Dakota have died in committee, along with two bills in New Hampshire and Wisconsin, mostly held by Democrats.

In Ohio, State Sen. Louis Blessing III, Township of R-Colerain, introduced a bill in the 2021 legislative session that would open businesses to lawsuits if they don’t accept cash as a means. of payment. Blessing cited protecting immigrant and poor communities as a driver of the bill, as well as protecting the data privacy of consumers and older people, who are more likely to use cash.

The bill is still pending in the Ohio legislature.

“I think if this bill went to a vote, every Democrat in the state would vote yes,” said Blessing, who was voted down mostly by his Republican counterparts in the Republican-held state.

The survey also revealed that the percentage of so-called underbanked households – those who have a bank account but still use expensive financial services like check cashing, pawnshops, salary and remittances – also declined.

The FDIC also found that about half of all US households used a non-bank payment service such as CashApp, Venmo, or PayPal in 2021.

AP Ohio Statehouse Reporter Samantha Hendrickson contributed to this report from Columbus, Ohio.

Copyright 2022 The Associated press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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WeDevelopment Federal Credit Union aims to stop predatory banks https://tysbvi.com/wedevelopment-federal-credit-union-aims-to-stop-predatory-banks/ Sat, 22 Oct 2022 18:11:00 +0000 https://tysbvi.com/wedevelopment-federal-credit-union-aims-to-stop-predatory-banks/ KANSAS CITY, Mo. — A project that was first discussed in 2007 came to fruition on Saturday. A ribbon-cutting ceremony was held at WeDevelopment Federal Credit Union, located at 31st and Prospect in Kansas City, Missouri. Dozens of community members and local leaders celebrated the new credit union which aims to help KC’s most financially […]]]>

KANSAS CITY, Mo. — A project that was first discussed in 2007 came to fruition on Saturday.

A ribbon-cutting ceremony was held at WeDevelopment Federal Credit Union, located at 31st and Prospect in Kansas City, Missouri.

Dozens of community members and local leaders celebrated the new credit union which aims to help KC’s most financially challenged areas.

“I think it shows persistence, you don’t change the world all at once, sometimes these things are tough,” said KCMO Mayor Quinton Lucas.

Gwendolyn Washington, CEO of WeDevelopment, told KSHB 41 that the credit union will help prevent people from getting into predatory lending companies, especially since the poverty rate near the location is around 30. %.

“When you have people on fixed incomes or who don’t make a lot of money, their emergencies might just be a $500 loan, that’s why they go to payday loans, but when they can go to a financial institution like WeDevelopment and they can take out a $500 loan with less than 20% interest, you know that’s where they need to come,” Washington said.

With priorities set on expanding access to banking services while educating members on how best to manage their finances, Mayor Lucas said the credit union is just the start of a better community. and safer.

“You see more businesses filling that intersection,” he said. “I think what you’re going to see is more people going back to the core of our city, more people developing, and in the long run a place that in 10 to 15 years looks very different. Having a lot more stores, having a lot more business and a lot less crime.”

There is still work to be done, but the credit union is scheduled to open to the community on December 5.

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CFPB Funding Mechanism Violates Constitution, Says Fifth Circuit (1) https://tysbvi.com/cfpb-funding-mechanism-violates-constitution-says-fifth-circuit-1/ Wed, 19 Oct 2022 23:45:18 +0000 https://tysbvi.com/cfpb-funding-mechanism-violates-constitution-says-fifth-circuit-1/ Independent funding of the Consumer Financial Protection Bureau through the Federal Reserve violates the Constitution’s separation of powers clause, the Fifth Circuit has said. Constitutional flaws found by the United States Court of Appeals for the Fifth Circuit in its decision on Wednesday also struck down the remaining parts of the CFPB’s restrictions on lenders […]]]>

Independent funding of the Consumer Financial Protection Bureau through the Federal Reserve violates the Constitution’s separation of powers clause, the Fifth Circuit has said.

Constitutional flaws found by the United States Court of Appeals for the Fifth Circuit in its decision on Wednesday also struck down the remaining parts of the CFPB’s restrictions on lenders offering payday loans, auto titles and other loans. short term at high interest rate.

“The Bureau’s perpetually self-directed, double-insulated funding structure goes one step further than that enjoyed by the other proposed agencies,” Judge Cory T. Wilson wrote for the three-judge appeals court panel.

The decision was a victory for payday lenders who had tried to remove a CFPB rule that would restrict their ability to access customers’ bank accounts and other measures. It also adds another headache for an agency that only recently dismissed a constitutional challenge to its leadership structure.

If the CFPB fails to overturn the Fifth Circuit’s decision on a likely appeal, the agency could face a massive fight in Congress for funding and potential placement on Congressional appropriations, particularly if the Republicans take over one or both houses of Congress in the upcoming midterm elections.

A CFPB spokesperson said there was “nothing new or unusual” about the CFPB’s funding mechanism, noting that the Federal Reserve System and programs like Medicare and Social Security are funded. outside of the credit allocation process.

“The CFPB will continue to carry out its vital work enforcing the nation’s laws and protecting American consumers,” the CFPB spokesperson said.

The Community Financial Services Association of America, the payday loan industry group leading the litigation over the rule, did not immediately respond to a request for comment.

Congress created the CFPB in 2010 in the Dodd-Frank Act, the legislative response to the 2008 financial crisis. only for cause and by providing independent funding through the Fed rather than through the Congressional appropriations process.

In June 2020, the Supreme Court ruled in Seila Law vs. CFPB that protections against removal for cause were unconstitutional and made the director of the CFPB an at-will employee of the president.

The High Court did not address the issue of funding. But other circuit courts had found that the bureau’s funding mechanism met constitutional requirements.

But the Fifth Circuit board found that CFPB funding was unique among federal regulatory agencies, including those funded without appropriations. The Fed, which is partly funded by assessments charged to banks, must return those funds beyond a prescribed limit to the Treasury Department.

The payday loan rule invalidated by Wednesday’s decision was finalized in 2020 after Kathy Kraninger, the Trump-era CFPB director, approved it.

The Trump-era version of the rule removed strict underwriting provisions that were originally put in place in 2017 by former CFPB director Richard Cordray.

The CFPB is expected to request an en banc review of the decision to the Fifth Circuit. The Supreme Court could also hear it at some point given the federal agency’s structural challenges.

Judges Don R. Willett and Kurt Engelhardt joined Wilson in the opinion.

The deal is Community Financial Services Association of America vs. CFPB5th Cir., No. 21-50826, notice 10/19/22.

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US bank earnings show consumer finances ‘do not show high risk’ https://tysbvi.com/us-bank-earnings-show-consumer-finances-do-not-show-high-risk/ Tue, 18 Oct 2022 00:11:00 +0000 https://tysbvi.com/us-bank-earnings-show-consumer-finances-do-not-show-high-risk/ By Andrew Keshner Prices continue to soar as September inflation data came in higher than expected earlier this week Despite all the worries about pinching inflation and the possibility of a recession, just-released big bank earnings reports indicate that the wallets of many ordinary Americans are generally holding up as they do facing higher prices […]]]>

By Andrew Keshner

Prices continue to soar as September inflation data came in higher than expected earlier this week

Despite all the worries about pinching inflation and the possibility of a recession, just-released big bank earnings reports indicate that the wallets of many ordinary Americans are generally holding up as they do facing higher prices – for now.

Stock markets ended Monday on a rosy note, after starting with a dip and rebounding with a surge following September inflation data that came in hotter than expected.

Comments on third-quarter earnings calls this month from executives at JPMorgan Chase & Co. (JPM), Wells Fargo (WFC) and Citibank (C) suggested consumers still had their own rebound despite the pressure. The optimistic words, however, were cut with a dose of caution.

It’s a reminder that assessing someone’s financial health is a tricky mix of moods and also dollars and cents. Also on Friday, consumer sentiment remained gloomy but improved slightly according to the University of Michigan consumer sentiment measure and data showed retail sales flat in September.

After JPMorgan’s third-quarter earnings and revenue beat estimates, an analyst on the call asked if there were any “cracks” emerging, including for people working in the banking industry. detail.

There’s high inflation, rising interest rates, higher mortgage rates, questions about fuel prices and more, CEO Jamie Dimon said.

“It’s not a crack in the current numbers. It’s entirely predictable that it will weigh on future numbers,” said the banker, who expressed potential fears of a recession. For now though, “balance sheets are very good for consumers,” he noted at one point.

At Wells Fargo, CEO Charlie Scharf noted that average deposit balances declined from the second quarter to the third quarter, but are still above pre-pandemic levels. There is a segment of customers who are seeing their balances “decline steadily” and their balances are now below pre-pandemic levels, he said.

“It’s important to note that this is still a small percentage of our total customer base,” he said. “Overall, our consumer deposit customer health metrics, including cash flow, payroll and overdraft trends, continue to show no elevated risk concerns,” he said. declared.

Wells Fargo posted stronger-than-expected third-quarter revenue to counter the loss in analysts’ earnings estimates.

Challenges await the UK and Europe, Citi CEO Jane Fraser said, speaking hours after British Prime Minister Liz Truss sacked her Chancellor of the Exchequer on Friday.

“The U.S. economy, however, remains relatively resilient. So while we see signs of an economic slowdown, consumers and businesses remain healthy,” Fraser noted.

“Supply chain constraints are easing, the labor market remains strong, so it’s all about what it takes to really get a grip on persistently high underlying inflation,” she added. . Citi earnings exceed profit targets

Of course, the numbers and takeaways that appear on a major bank’s earnings call are just a snapshot of people’s financial situations. Indeed, inflation rates at their highest level in four decades have become a key political issue in the midterm elections which will take place in less than a month.

It should also be noted that there are whole sections of people who do not have a bank account or who use the services of a bank very little. Most Americans are “fully banked,” meaning they have a bank account and don’t use alternative financial services such as payday loans, according to Federal Reserve analysis.

But an estimated 13% are “underbanked” and another 5% are unbanked. Without access to traditional banking services, these consumers — who typically have lower incomes and are black and Hispanic — are using services such as check cashing services and payday lenders, according to Fed data.

Black, Hispanic and Native American families have been especially grappling with the toll of inflation, research and polls show

The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite closed Monday. Shares of JP Morgan, Well Fargo and Citi rose on Monday.

Wells Fargo shares are down about 9% year-to-date, while JPMorgan and Citigroup shares are down about 30% and 28%, respectively, over the same period.

-Andrew Keshner

 

(END) Dow Jones Newswire

10-17-22 2011ET

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

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