Uncategorized – Matice Zasovska http://www.maticezasovska.cz/ Wed, 22 Jun 2022 21:50:21 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 http://www.maticezasovska.cz/wp-content/uploads/2021/07/icon-4-150x150.png Uncategorized – Matice Zasovska http://www.maticezasovska.cz/ 32 32 NEW POLL SHOWS SIGNIFICANT MAJORITY OF HOURLY WORKERS FIGHTING HIGH GASOLINE PRICES AND INFLATION http://www.maticezasovska.cz/new-poll-shows-significant-majority-of-hourly-workers-fighting-high-gasoline-prices-and-inflation/ Wed, 22 Jun 2022 17:00:00 +0000 http://www.maticezasovska.cz/new-poll-shows-significant-majority-of-hourly-workers-fighting-high-gasoline-prices-and-inflation/ According to a Harris poll commissioned by DailyPay and financing our future 77% say the stress of managing finances affects their health 22% of hourly workers report using payday loans in 2022 NEW YORK, June 22, 2022 /PRNewswire/ — High inflation and record gas pump prices are making it difficult for many American hourly workers […]]]>

According to a Harris poll commissioned by DailyPay and financing our future

77% say the stress of managing finances affects their health

22% of hourly workers report using payday loans in 2022

NEW YORK, June 22, 2022 /PRNewswire/ — High inflation and record gas pump prices are making it difficult for many American hourly workers to cover expenses and save for the future, according to a new Harris poll of more of 600 hourly workers commissioned by DailyPay and Funding Our Future. These tough economic realities have hit some communities harder than others: Among hourly workers, 39% of women say they save less than a year ago, compared to just 28% of men; and 40% of hourly workers whose household income is less than $100,000 say they save less than last year or not at all, compared to 31% of hourly workers with a household income of $100,000 or more.

The new data shows that hourly workers could be hit the hardest by these challenges, with 81% of hourly workers saying rising gas prices have had a negative effect on their ability to pay for other expenses.

Additionally, the survey shows that 75% of hourly workers have struggled to pay their expenses this year. Groceries (49%), gas (48%), utilities (40%) and rent/mortgage (34%) top the list of expenses they struggle to pay. These challenges are colored by the fact that 35% of all hourly workers report having received no raise in the past year, a figure that rises to 49% for hourly workers in households with incomes less than $50,000 a year.

The struggle to pay for basic necessities also weighs on personal well-being: 77% of hourly workers say the stress of managing their finances has had a negative impact on their health.

“First the immediate economic fallout from the pandemic, now record inflation and high gas prices have reminded us how important financial security and flexibility are for American families,” said Shai Akabas, director of economic policy at the Bipartisan Policy Center, which founded Funding Our Future. “It is crucial that we increase access to tools such as emergency savings accounts and pay-as-you-go that help workers save and weather turbulent times.”

To make ends meet, 22% of hourly workers say they have taken out a personal loan this year, including nearly a third (31%) of those aged 18 to 34.

Looking for a way to help their employees through these difficult times, a growing number of employers are offering pay-as-you-go as a financial wellness benefit. Ten percent of hourly workers say they use an on-demand payment app to cover their bills when they don’t have money.

“Employers have the opportunity to strengthen the bond with their employees and provide them with benefits that can help them through uncertain economic times,” said Jeanniey Walden, chief innovation and marketing officer at DailyPay.

In an independent study conducted by the Aite Novarica Group, 4 out of 5 respondents said that having access to compensation at the request of their employer eliminated their dependence on payday loans or overdraft fees.

To learn more about the survey, click HERE.

Survey method:

This survey was conducted online in United States by The Harris Poll on behalf of Daily Pay and Financing our future of May 24-26, 2022, among 2,032 American adults ages 18 and older, of whom 654 are hourly workers. The sampling precision of Harris online polls are measured using a Bayesian credibility interval. For this study, the sample data is accurate to within +-2.8 percentage points using a 95% confidence level. For full survey methodology, including weighting variables and subgroup sample sizes, please contact [email protected].

Funding Our Future, a coalition of approximately 60 organizations spanning the academic, nonprofit, trade association and corporate sectors, is dedicated to making long-term financial security a reality for households across the country. Funding Our Future seeks to highlight the shortcomings of our existing system, encourage more people to save, advance financial literacy, and promote solutions that ultimately improve the financial security of all Americans as they age. For more information, visit https://fundingourfuture.us/.

About Daily Pay

DailyPay, Inc., powered by its cutting-edge technology platform, is on a mission to create a new financial system. Partnered with some of America’s top employers, including Dollar Tree and Adecco, DailyPay is the recognized benchmark for on-demand payment. With its vast data network, proprietary funding model and connections to over 6,000 banking system endpoints, DailyPay ensures that money is always in the right place at the right time for employers, merchants and financial institutions. DailyPay develops the technology and the mindset to reinvent the way money moves, from the start of work. DailyPay is headquartered in New York Citywith operations based in Minneapolis. For more information, visit www.dailypay.com/press.

CONTACT: [email protected]

SOURCEDailyPay

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Three tips for investing in a recession http://www.maticezasovska.cz/three-tips-for-investing-in-a-recession/ Mon, 20 Jun 2022 17:03:57 +0000 http://www.maticezasovska.cz/three-tips-for-investing-in-a-recession/ Investing is an essential strategy for creating wealth. Everyone you know is talking about mutual funds, stocks, bitcoin, cryptocurrency. And if you’re like me, you have friends who brag about their high returns investing in IPOs (IPOs) and how that extra money they’ve earned helps pay the bills considering of the current high inflation. Today […]]]>

Investing is an essential strategy for creating wealth. Everyone you know is talking about mutual funds, stocks, bitcoin, cryptocurrency. And if you’re like me, you have friends who brag about their high returns investing in IPOs (IPOs) and how that extra money they’ve earned helps pay the bills considering of the current high inflation.

Today more than ever, it is essential that everyone invests intelligently.

We cannot afford to make financial mistakes in an environment of high inflation and rising interest rates because these mistakes will hurt your future financial prosperity.

A US recession is increasingly likely to arrive later this year or early 2023. The contagion from this recession will impact the entire world. I want you to take action and not let your financial situation get worse as the economic outlook gets tougher.

Here are three practical and simple strategies you can consider implementing so that you can financially withstand the impending negative impacts of a recession.

Tip 1: Switch to a high interest savings account

Your emergency fund, that “rainy day” money, should be around three to six months of income. Start building your emergency fund by storing funds each month in a high-interest savings account. Uncertainty is the new normal, and the need for an emergency fund is now greater than ever.

You will need to open a high interest savings account and start depositing money regularly until you have enough funds to replace three to six months of income. Start with what you have, whether it’s $100 or $10,000 a month, and with consistency, you can have the emergency fund and be ready for any “rainy day” that comes your way. .

Tip 2: Get rid of your high-interest debt so you have more money to save and invest

You can start by paying off this credit card with the lowest outstanding balance while making minimum payments on the other credit cards (i.e. if you have multiple credit cards and loans). Gradually work to pay off all credit cards, then you can free up more money to save and invest. To stay disciplined, set up standing orders or automated withdrawals on the credit card account to stay on track.

Other types of high-interest debt are your lines of credit, payday loans, and lease-purchase payments. With rising interest rates, these are all expensive debts because you are paying a lot of money in interest charges to be able to repay the amounts you have borrowed. Use the same principle and pay them back as soon as possible.

Tip 3: Change your investment strategy to focus on quality companies

Start learning about the types of stocks that do well in a recession and choose a group of three to five companies that you know well. These will be the stocks you seek out and add to your portfolio.

As an experienced investment strategist, this is where I can really take you to a place of abundance with investment money. Imagine having passive income each month from dividends or capital gains from your investments. This can certainly go a long way in creating financial security.

Money loves speed. Take action today with these three tips, and you will see a positive financial impact.

I wish you continued financial success!

Keisha Bailey is an experienced investment strategist who teaches people how to earn passive income, build wealth, and save time by investing in stocks. She can be reached at keisha@profitjumpstarter.com

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The key to reducing child poverty? Child tax credits distributed monthly http://www.maticezasovska.cz/the-key-to-reducing-child-poverty-child-tax-credits-distributed-monthly/ Mon, 13 Jun 2022 20:00:00 +0000 http://www.maticezasovska.cz/the-key-to-reducing-child-poverty-child-tax-credits-distributed-monthly/ With last month’s extraordinary 8.3% inflation rate pushing Americans down, rapidly rising costs associated with food, fuel, housing and child care are putting countless families in financial danger. Knowing that the nation would face continued economic pressure from the pandemic, the US government adopted and implemented an ambitious policy agenda last year, which included the […]]]>

With last month’s extraordinary 8.3% inflation rate pushing Americans down, rapidly rising costs associated with food, fuel, housing and child care are putting countless families in financial danger.

Knowing that the nation would face continued economic pressure from the pandemic, the US government adopted and implemented an ambitious policy agenda last year, which included the expanded Child Tax Credit (CTC) program. In just six months, this landmark initiative has dramatically reduced child poverty and injected local economies with an estimated $19 billion per month in additional spending.

One of the main reasons for the success of the child tax credit? Checks are paid into parents’ bank accounts once a month.

This idea is not new. Just look at the country’s most effective anti-poverty program – Social Security – which distributes benefits to recipients throughout the year. We know that Social Security protects older Americans from poverty, but — as columnist Bryce Covert recently pointed out in The New York Times — America has chosen not to prioritize children in the same way.

The fact that CTC payments were distributed monthly as part of the US bailout is key to understanding why this direct cash program worked so well and why 3.7 million more children are living in poverty after the Congress authorized the program to expire at the end of last year. .

New analysis from the Columbia University Center on Poverty and Social Policy proves this point directly, breaking down the anti-poverty benefits of monthly CTC and showing that monthly payments are more effective than an annual lump sum.

When CTC payments are distributed once a year at tax time, child poverty drops significantly by about eleven percentage points or from 22.4% to 11%. However, anti-poverty benefits often decline in May. Compare that to monthly payments – which keep almost a third more children out of poverty each month they are distributed, according to Columbia findings..

According to this report, monthly Child Tax Credit payments could prevent about one in 10 children from experiencing a period of poverty at any time of the year, compared to annual payments, which often alleviate poverty for only one or two months during tax time.

Monthly checks reduce child poverty throughout the year by reducing income volatility, which destabilizes the month-to-month fluctuations in income that affect low-income families the most. Not only do monthly payments reduce the risk of children being persistently poor, they also reduce the risk of children becoming poor throughout the year.

The Columbia data shows what we actually saw in real life when the Child Tax Credit was in effect.

When CTC checks began hitting bank accounts in July 2021, the impact of credit on life was immediately clear. In six weeks, food insufficiency decreased by about a quarter. The improvements were significant among black and Hispanic families, who experience the highest rates of eating difficulties.

As we navigate this “new normal,” we cannot forget this important lesson of the US bailout: monthly cash payments prevent children from falling into poverty. These payments also help families in other valuable ways. Bills come in every month, and monthly CTC checks help buy groceries, pay bills, and pay rent or mortgage on time. In a survey of low-income families, three-quarters of SNAP recipients used their CTC payments on bills, including to avoid utility cuts, evictions and foreclosures. Families across the country have been able to take a breath of fresh air and report feeling less financial stress thanks to the CTC.

Economists are still learning about the long-term impact of the child tax credit on the financial health of American families. However, preliminary data – as well as the real-life experiences of millions of families – show that the monthly CTC payments not only had no discernible negative effect on employment, but supported work and life. entrepreneurial spirit among some parents. Additionally, monthly CTC payments have helped parents reduce their credit card debt and reduce their reliance on payday loans, pawnshops, and even the sale of blood plasma.

Monthly payments have been a key part of CTC’s success, and that model must be maintained if — and when — Congress brings the program back to life.

Christine Hamilton is a postdoctoral fellow at the Center on Poverty and Social Policy at Columbia University School of Social Work.

Natalie Foster is the president and co-founder of the Economic Security Project, a network committed to advancing the conversation about cash benefits and basic income in the United States.

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Personal loan ads on social networks http://www.maticezasovska.cz/personal-loan-ads-on-social-networks/ Sun, 12 Jun 2022 00:07:08 +0000 http://www.maticezasovska.cz/personal-loan-ads-on-social-networks/ The past few years have been difficult for many Americans. Unfortunately, trying to stretch every dollar to buy basic necessities has become the norm. Some might consider a second or third job to pay the bills. This is precisely the type of person that payday loans target. Promising quick cash without telling the full story […]]]>

The past few years have been difficult for many Americans. Unfortunately, trying to stretch every dollar to buy basic necessities has become the norm. Some might consider a second or third job to pay the bills.

This is precisely the type of person that payday loans target. Promising quick cash without telling the full story of loan costs, these ads have been popping up on social media platforms like TikTok.

Read on to find out how these companies are bending the rules and why taking a payday loan is bad.

Here is the backstory

All social media platforms have advertising as it is the main way to generate profit. But some sites are not as strict about ad content as others. For example, TikTok claims to have a policy against “exaggerated performance or promises”.

Yet, there are many payday loan messages that target vulnerable users. According to Media Matters for America, three companies are systematically violating TikTok’s advertising policies by promoting payday loans.

Promising instant cash, posts by Earnin, Brigit and Albert target those in need of quick cash with phrasing such as “living paycheck to paycheck” or always being “broke”. It is unclear how advertising is allowed to be on the platform.

TikTok Payday Loans
Credit: Media Matters for America

But Earnin is no stranger to controversy. The company settled a $12.5 million lawsuit three years ago for deceptive lending practices. Brigit and Albert are also not registered with the Better Business Bureau (BBB), as some users claimed there were unexpected charges or missing deposits.

What can you do about it

It may seem like a lucrative opportunity to get some quick cash in your wallet, but there will always be a catch. The interest rate will be exorbitant, and they don’t call it often. Some advertisements will use words such as “fee” or “tip” without mentioning the interest rate.

According to the Consumer Financial Protection Bureau, a two-week payday loan with a $15 fee to borrow $100 gives you an annual percentage rate of 400%. That’s way more than the typical 30% for a high-interest credit card.

This can leave you in a cycle of debt, but according to the BBB, there are safer alternatives to payday loans:

  • Build a budget with an emergency fund. Create a budget so you know how much money you receive and how much you need to pay your bills. This will help avoid needing a loan in the first place. Then set aside money each month to build an emergency fund. You will be covered even if an unexpected expense or emergency occurs.
  • Get credit advice. Get credit counseling if you find yourself unable to pay your bills or caught in a cycle of debt due to a high-interest loan. The US Department of Justice has a list of agencies for people seeking debt reduction assistance. Also see BBB’s advice on credit counseling for more resources.
  • Shop for loans. Compare interest rates, fees and late fees by reading the fine print before choosing a lender. Pay close attention to interest rates and loan rollover fees. Credit unions are a great place to get a small loan with reasonable interest rates. Even credit card cash advances, which typically have double-digit interest rates, likely have lower interest rates than those offered by a payday lender.
  • Contact your creditors if you cannot pay on time. If you realize you won’t be able to make a payment on time, don’t panic. Contact the creditor directly. Many creditors are willing to work with you to design a payment plan you can afford.

keep reading

These family plans will save you money, even if you’re not family

Check to see if any of these outdated gadgets are selling big bucks on eBay

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Electric vehicle charger standards may require contactless payments http://www.maticezasovska.cz/electric-vehicle-charger-standards-may-require-contactless-payments/ Fri, 10 Jun 2022 17:43:48 +0000 http://www.maticezasovska.cz/electric-vehicle-charger-standards-may-require-contactless-payments/ Public electric vehicle (EV) charging stations installed using funds provided by the federal government’s bipartisan Infrastructure Act (BIL) could be required to include contactless payment methods if proposed standards announced Thursday June 9 are adopted. This is one of the proposed requirements published by the Federal Highway Administration (FHWA) Department of Transportation (DOT) in a […]]]>

Public electric vehicle (EV) charging stations installed using funds provided by the federal government’s bipartisan Infrastructure Act (BIL) could be required to include contactless payment methods if proposed standards announced Thursday June 9 are adopted.

This is one of the proposed requirements published by the Federal Highway Administration (FHWA) Department of Transportation (DOT) in a Notice of Proposed Rulemaking (NPRM).

Other proposed standards for payment methods used at electric vehicle charging stations in the NPRM include contactless payment being accepted from all major debit and credit cards, access and service are not limited by membership or type of payment method, and that plug and charge payment capabilities are mandatory.

Ensuring the interoperability of charging stations for electric vehicles

“The proposed regulations would include requirements intended to ensure the interoperability of electric vehicle charging stations on the national grid by requiring payment methods to meet industry standards and also requiring that memberships are not required for use,” the FHWA said in the NPRM. “Charging station interoperability is key to ensuring electric vehicle drivers have a consistent payment experience across the country.”

In the NPRM, the FHWA seeks comments on the payment methods currently offered, whether contactless payment options should be required, and whether other payment methods should be required.

“The proposed rule also outlines several requirements aimed at ensuring that payment options are secure, fair and accessible, while ensuring that the rule will accommodate future innovations in payment methods.”

Advocacy for contactless payments

The inclusion of contactless payment methods has been applauded by the Electric Vehicle Charging Network Charging pointone of nine manufacturers, deployers and operators of electric vehicle charging networks that advocate contactless credit and debit card readers.

“We commend the federal government for working to increase access to electric vehicle charging by embracing contactless credit card payment technology and supporting roaming between charging networks,” the vice said. -President of Global Public Policy for ChargePoint. Anne Smart wrote in a statement provided to PYMNTS.

Prior to Thursday’s release of the NPRM, ChargePoint and other industry players were concerned that the National Electric Vehicle Infrastructure (NEVI) formula program, which sets minimum standards for electric vehicle charging infrastructure installed at the he funds provided by BIL did not specify a mode of payment – saying only that those offered must guarantee “safe, convenient and equal access”.

In an April 13 letter to Transportation Secretary Pete Buttigieg and Energy Secretary Jennifer Granholm, nine companies involved in electric vehicle charging networks described the advantages of contactless payments and the disadvantages of card readers. credit cards that physically interact with the card when reading its Magstripe or EMV chip. .

Read more: Companies in the electric vehicle charging network seek contactless payments at charging stations

Build 500,000 EV chargers

The proposed standards are part of the federal government’s plan to build 500,000 EV chargers nationwide under BIL, according to a fact sheet published Thursday, June 9 by the White House.

“Without strict standards, chargers would be less reliable, might not work for all cars, or lack common payment methods,” the White House said in the fact sheet. “The new standards will ensure that anyone can use the network, no matter what car you drive or what state you charge in.”

In the statement provided to PYMNTS, ChargePoint’s Smart said, “ChargePoint has worked with the federal government, states and our partners to ensure the NEVI program is designed and implemented in a way that best meets the needs of drivers in electric vehicles. These draft minimum standards incorporate many of the best practices that we have developed over the past 15 years.

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NEW PYMNTS DATA: THE CUSTOM PURCHASING EXPERIENCE STUDY – MAY 2022

About: PYMNTS’ survey of 2,094 consumers for The Tailored Shopping Experience report, a collaboration with Elastic Path, shows where merchants are succeeding and where they need to up their game to deliver a personalized shopping experience.

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Two in Five Buy Now, Pay Later Borrow Money to Pay Off Debt | Buy now, pay later http://www.maticezasovska.cz/two-in-five-buy-now-pay-later-borrow-money-to-pay-off-debt-buy-now-pay-later/ Wed, 08 Jun 2022 05:01:00 +0000 http://www.maticezasovska.cz/two-in-five-buy-now-pay-later-borrow-money-to-pay-off-debt-buy-now-pay-later/ More than two in five recent buyers who buy now, pay later (BNPL) have used credit cards or other forms of borrowing to pay off what they owed, the charity Citizens Advice says . He said the figures showed buyers were “piling borrowing on borrowing” and stressed the urgent need to regulate BNPL. On Monday, […]]]>

More than two in five recent buyers who buy now, pay later (BNPL) have used credit cards or other forms of borrowing to pay off what they owed, the charity Citizens Advice says .

He said the figures showed buyers were “piling borrowing on borrowing” and stressed the urgent need to regulate BNPL.

On Monday, Apple unveiled a BNPL feature for iPhones, which will initially launch in the US around September and could come to the UK a few months later.

BNPL allows buyers to stagger payments for goods without interest or charges – unless they fail to repay on time, in which case some companies charge late fees. Generally, the cost is divided into weekly, bi-weekly or monthly installments.

Two of the biggest BNPL companies operating in the UK are Klarna and Clearpay, and other big players include Laybuy and Zilch.

This form of credit has seen explosive growth during the coronavirus pandemic, especially among those under 30 and those with tight finances. However, the rate of growth is thought to have slowed in recent months as the cost of living crisis prompted people to cut back on non-essential spending.

A survey was conducted for Citizens Advice in March of 2,288 people in the UK who had used BNPL in the previous 12 months.

More than two in five respondents (42%) said they use some type of loan to fund their repayments, with credit cards being by far the most popular option. Others included overdrafts, borrowing from friends and family, personal loans and payday loans.

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Young buyers were the most likely to borrow to repay their BNPL purchases. The charity found that 51% of 18-34 year olds had borrowed money to pay off BNPL debts.

The government has said the BNPL is to be regulated by the Financial Conduct Authority, although this is unlikely to happen before the end of this year or in 2023. Citizens Advice wants this regulation to include affordability checks by all participating companies and clearer information when making online payments.

Millie Harris, debt counselor at Citizens Advice East Devon, said using credit cards and other types of borrowing for repayments “just relies on one debt to pay off another”.

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Initiative to cap interest rates on payday loans submits signatures for Michigan ballot – Ballotpedia News http://www.maticezasovska.cz/initiative-to-cap-interest-rates-on-payday-loans-submits-signatures-for-michigan-ballot-ballotpedia-news/ Mon, 06 Jun 2022 16:02:05 +0000 http://www.maticezasovska.cz/initiative-to-cap-interest-rates-on-payday-loans-submits-signatures-for-michigan-ballot-ballotpedia-news/ On June 1, the Michiganders for Fair Lending campaign submitted signatures for a ballot initiative that would appear on the November ballot. The initiative would introduce a 36% annual interest cap on payday loans. Michiganders for Fair Lending argues that the typical payday loan carries an annual rate of 370% and that high interest rates […]]]>

On June 1, the Michiganders for Fair Lending campaign submitted signatures for a ballot initiative that would appear on the November ballot.

The initiative would introduce a 36% annual interest cap on payday loans. Michiganders for Fair Lending argues that the typical payday loan carries an annual rate of 370% and that high interest rates can be financially detrimental to Michiganders. According to the Center of Responsible Lending, 18 states, plus the District of Columbia, cap annual interest at 36%.

“Payday lenders have used the lure of quick money for too long to prey on vulnerable Michiganders,” said campaign spokesman Josh Hovey, “These extreme interest rate loans are designed to trap people in an endless cycle of debt, and we’re giving voters a chance this fall to fix that.

Of the 10 initiative campaigns in Michigan, the Michiganders for Fair Lending campaign was the only one to meet the June 1 signature submission deadline.

The campaign said that of the 575,000 signatures collected during the petition process, they submitted 405,265 signatures. In Michigan, 340,047 signatures are required in 2022 to qualify an indirectly initiated state law for the ballot. This number is determined by calculating 8% of the votes cast for Governor in the last gubernatorial election.

The measure is a State law of indirect initiative. Of the 21 states that allow state-initiated statuses, nine states, including Michigan, use an indirect process for citizen-initiated statuses. In Michigan, citizen-initiated laws that receive enough valid signatures are sent to the Legislative Assembly, which then has 40 days to enact the initiative into law. The governor cannot veto indirect initiatives approved by lawmakers. If the legislature does not approve the initiative, then it appears on the next general election ballot.

The other nine initiative campaigns that did not submit signatures on time could appear on the ballot in the next election cycle.

Currently, there is another measure on the Michigan ballot — a constitutional amendment returned by the legislature, which would change the term limits of state lawmakers.

Since 1996, 26 citizen-initiated measures have been submitted to Michigan voters for approval. Of the 26, 8 (31%) were approved and 18 (69%) were rejected.

Further reading:

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Ignore Tom Brady and Matt Damon on Crypto and Celebrities on Money in General http://www.maticezasovska.cz/ignore-tom-brady-and-matt-damon-on-crypto-and-celebrities-on-money-in-general/ Thu, 02 Jun 2022 12:00:00 +0000 http://www.maticezasovska.cz/ignore-tom-brady-and-matt-damon-on-crypto-and-celebrities-on-money-in-general/ Amid the current crypto crash, a lot of people are a little miffed at celebrities who have bought this stuff out. Gwyneth Paltrow, Tom Brady, Reese Witherspoon, and even Larry David were all happy to help with cryptocurrency mainstreaming in recent months, only to shut up now that things have gotten a little rough. For […]]]>

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

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

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

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

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

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

Celebrities = $$$

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

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

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

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

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

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

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

Probably don’t listen to celebrities talking about money

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

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

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

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

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

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

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

Except, of course, the people who lost.

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

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

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New laws and more affordable lenders could shake up the payday loan market http://www.maticezasovska.cz/new-laws-and-more-affordable-lenders-could-shake-up-the-payday-loan-market/ Tue, 31 May 2022 09:01:00 +0000 http://www.maticezasovska.cz/new-laws-and-more-affordable-lenders-could-shake-up-the-payday-loan-market/ Inflation has particularly affected people who are already struggling to fit gas in their tanks and groceries in their refrigerators. For many, a payday loan may seem like the only way to get the money needed. In recent years, however, as more states impose restrictions on risky short-term lending, new lenders have emerged offering small, […]]]>

Inflation has particularly affected people who are already struggling to fit gas in their tanks and groceries in their refrigerators. For many, a payday loan may seem like the only way to get the money needed.

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

In some states, new laws mean better loans

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

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

Also Read: More US Subprime Borrowers Are Missing Their Loans

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

National banks and local credit unions step in

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

Seven major banks have started offering or announced plans to offer small-dollar borrowing options with low annual percentage rates in recent years, Horowitz says, including Bank of America BAC,
+0.95%,
Wells Fargo WFC,
+0.64%
and Truist TFC,
+1.49%.
These loans are available to existing bank customers nationwide, regardless of state interest rate limits.

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

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

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

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

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

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

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

Other Borrowing Options

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

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

Payday advance. Some companies, including Walmart WMT,
+1.97%
and Amazon AMZN,
+3.66%,
allow their employees to access a portion of their paycheck earlier as benefits. It can be an interest-free way to borrow money if your employer offers it, but since the repayment comes from your next paycheck, it’s best to use it sparingly.

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

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

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

More from NerdWallet

Annie Millerbernd writes for NerdWallet. Email: amillerbernd@nerdwallet.com.

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Parking meter deal gets even worse for Chicago ratepayers, annual audit says http://www.maticezasovska.cz/parking-meter-deal-gets-even-worse-for-chicago-ratepayers-annual-audit-says/ Thu, 26 May 2022 23:00:00 +0000 http://www.maticezasovska.cz/parking-meter-deal-gets-even-worse-for-chicago-ratepayers-annual-audit-says/ In their failed bid to blockade Bally’s $1.7 billion River West casino, downtown city council members warned the deal was rushed — just like the one that privatized Chicago’s parking meters — and that it would end up being “even worse” for taxpayers. This dire prediction is hard to imagine, given the results of the […]]]>

In their failed bid to blockade Bally’s $1.7 billion River West casino, downtown city council members warned the deal was rushed — just like the one that privatized Chicago’s parking meters — and that it would end up being “even worse” for taxpayers.

This dire prediction is hard to imagine, given the results of the latest parking meter audit by accounting giant KPMG.

It shows Chicago’s parking meter revenue is nearly back to pre-pandemic levels. After dropping to $91.6 million in 2020, they jumped to $136.2 million last year.

The increase stems from the recovery of Chicago’s economy and hundreds of new metered spaces in Montrose Harbor and on busy neighborhood streets created as part of Mayor Lori Lightfoot’s 2021 budget.

With 61 years remaining on the 75-year lease, Chicago Parking Meters LLC has now recovered its entire $1.16 billion investment and $502.5 million more.

Private investors as far away as Abu Dhabi would have done even better had they not brought in a new investor and borrowed $22 million at 15% to weather the pandemic. This loan was fully repaid last year.

Additionally, four city-owned underground parking garages brought in $22 million, up 37.5% from $16.2 million last year.

Thanks to higher traffic and a further increase in tolls, the privatized Chicago Skyway generated $114.3 million. This represents a 34.7% increase in revenue and far more than Skyway’s $92 million in annual revenue in 2019, the year before the lockdown closed.

Not a penny of that revenue eased the burden on Chicago taxpayers, who had to absorb a $76.5 million increase in the city’s property tax after a $94 million property tax hike the last year.

Parking meters, downtown garages and the Skyway were all dumped by then-Mayor Richard M. Daley, who used the money to avoid raising property taxes while the pension funds of city ​​employees sank deeper into the hole.

Of these three agreements, the parking meter lease was the biggest political nightmare for the two mayors who inherited it and for the members of Council who approved it with lightning speed.

There have been steep increases in outgoing rates, including parking downtown, from $3 per hour in 2008 to $6.50 per hour in 2013. It is now $7 per hour.

Motorists were so infuriated by the rate hikes that they vandalized and boycotted meters, leading to a dramatic drop in street parking. Revenues eventually recovered — until the pandemic.

After the privatization of the parking meters, the tariffs were increased.

Tyler LaRivière/Sun-Times

The latest audit once again proves how attractive the deal was for private investors.

Although Chicago Parking Meters LLC lost a third of its annual revenue in 2020, the system still generated enough money that year to distribute a $13 million distribution to investors.

Total revenue was well above the $23.8 million in meter payments in 2008, the year before CPM took over the system. Indeed, the mayor and city council, fearful of risking a political backlash by raising parking meter rates themselves, opted to offload the meters instead of directly hiring LAZ Parking to administer a city-owned system with a new technology.

Investors recouped an additional $6.7 million through a contractual provision requiring the city to reimburse investors for each space taken out of service.

This includes temporary street closures for special events, sewer repairs and other construction projects and street closures that have allowed restaurants and bars to serve more customers outdoors when indoor capacity was restricted or even prohibited.

In the full 12 years since the meters were privatized, the city has paid out $78.8 million in “regularization” payments, as they are called.

That’s even after then-Mayor Rahm Emanuel changed the fine print in 2013, reducing the city’s liability by increasing the hours and days motorists pay for parking.

Taking into account the recently announced figure for 2021, private investors have already extracted $2.1 billion from the deal, in part by refinancing three times. The last $1.2 billion refinancing was completed in 2019.

Now that parking revenue is back to normal, the company should end up earning at least six times more than what investors put in over the life of the deal.

The results of the latest audits were provided to the Chicago Sun-Times by attorney Clint Krislov. As director of the Center for Open Government Law Clinic at IIT Chicago-Kent, Krislov has reviewed dozens of transactions and provides an annual analysis of each year’s results.

“Those three deals turned out to be like payday loans. They were so myopic. They took the cash quickly, ignoring the fact that they were burdening the city with horribly structured, underpriced deals that will cost the city for decades to come,” Krislov said Thursday.

“The city should have hired a parking operator to update the technology and operate the system for the city. If they had done that and gotten a better price for all three assets, Chicago today would have between $3 billion and $4 billion more than it has from those three deals together.

Scott Burnham, a spokesman for Chicago Parking Meters LLC, declined to comment on the audit.

Although the parking meter lease is the deal Council members and their constituents love to hate, Krislov once again argued that it “pales in comparison” to the Skyway deal.

A decade after investors gave the city more than $1.83 billion to lease the Skyway for 99 years, the rights to operate the privatized highway and escalating tolls have been sold to a consortium of three regimes. Canadian pensions for $1 billion more than the original price.

“Canadian pension funds spent $2 billion to buy the Skyway and it’s doing well. It would have worked well for the city if the city had just hired an operator to run the Skyway,” and collect the growing tolls for the city, Krislov said.

Krislov tried to have the meter and garage offerings declared illegal on the grounds that the city cannot legally sell on public roads.

He further claimed that the garage deal both limits development in the Loop and subjects the city to giant penalties, such as the $62 million the city spent to compensate the owners of the Millennium Park and Grant garages. Park after the city cleared the Aqua Building, 225 N Columbus Drive, to open a competing garage.

Both lawsuits were dropped after the Emanuel administration defended the deals.

As mayor-elect Lori Lightfoot has promised to take a fresh look at the parking meter deal and try to find a way to break the lease, shorten it or sweeten the sour terms for taxpayers.

She called it a “burr under your saddle” that “keeps rubbing and rubbing,” but her administration did nothing to remove it.

“We know they’re the ones who call when the phone doesn’t ring, as they say,” Krislov joked, paraphrasing a Randy Travis song.

Getting serious, Krislov said he would have been more than happy to team up with mayor to “fight this thing”.

“If the city administration had said, ‘This is not a legal agreement. The city can’t agree to sell the right of way to private parties in this type of deal, “we might have gotten the city out of it,” he said.

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