Benjamin

Wednesday, March 25, 2009

South Carolina Seanate Backs Off on Payday Loan Restrictions

Payday loan restrictions too much

South Carolina Capitol Building

Legislators have been laying the smack down on the payday loan industry in South Carolina lately. However, today it appears they might be willing to ease up a bit.

The regulations moving through the Senate included a provision that limits the total amount of a payday loan to 25 percent of the person’s income. A Senate committee today voted to take that provision out.

Most limits intact

The regulations before the Senate still contain most of the original limits they set out to place. Payday loans cannot be given in amounts higher than $500. It also adds a two-day cooling off period, during which a borrower cannot take out another payday loan after paying one off.

No limit to limits?

Some members of the South Carolina Senate say that the payday loan regulations simply don’t go far enough.

“This still needs more work,” said Sue Berkowitz, director of the Appleseed Center for Legal Justice in Columbia.

AARP lobbyist Teresa Arnold agreed that the restrictions at this point are not satisfactory. She said the $500 loan limit is still too high, and accused the Senate of moving backward.

A voice for the payday loan business

Jaime Fulmer, spokesman for payday lender Advance America Cash Advance, spoke out in defense of the payday lending industry. ... click here to read the rest of the article titled "South Carolina Seanate Backs Off on Payday Loan Restrictions"

Can an Installment Loan Help a Struggling Company?

The unemployment rate soars in four states

For those who still have a job, an installment loan may help you pull through the staggering economy. For those who have had to take pay cuts in order to retain their jobs, you are luckier than many. California, South Carolina, Michigan and Rhode Island reported unemployment rates of ten percent or more in January, and economists predict it may reach double digits nationally by the end of the year. In addition, California is forcing state workers to take two unpaid days off per month and is failing to process income tax refunds because of budgetary concerns. The lowest unemployment rate in January was reported by Wyoming at 3.7 percent.

The Effect of Government Bailouts

Though it would seem that relying on the government to bail out companies with lagging sales is a good plan, it's also important to understand the impact these might have. We need only look at the recent situation with AIG—the government stepped in to help and yet they still paid bonuses to top executives, some of whom put the money into offshore bank accounts. This is clear mismanagement of funds that could have been used to rebuild their infrastructure or for the government to help other businesses in need of funding. ... click here to read the rest of the article titled "Can an Installment Loan Help a Struggling Company?"

Durable Goods Orders Up | Are We Buying Again?

Orders for big-ticket items up

Perhaps it was the Obama press conference March 24, in which he revealed that the Federal Reserve may begin buying Treasury securities. But whatever the case, Greg Morcroft of the Wall Street Journal reports that U.S. financial stocks have, for the time being, regained positive footing. This comes in no small part on an increase in orders for durable goods, payday loan funded or not.

The Financial Select Sector SPDR, which tracks financials in the S&P 500, climbed 5.4 percent. Demand for machines and capital goods was up in February, which in turn drove durable goods orders up by 3.4 percent according to the Commerce Department. This uptick in orders for big-ticket items is definitely a positive sign for America’s economy and marks the first monthly increase after six straight months of tumbling numbers.

Have we hit the bottom? This way up!

And economists had expected orders for durable goods to fall 1.2 percent. Ha!

Some of the high risers, thanks to this increase in orders, include the commercial real estate firm CB Richard Ellis Group Inc., which rose 60 percent to $4.81 per share; Bank of America Corp., which went up 10 percent; Fifth Third Bancorp (not responsible for the Fifth Third Burger), whose shares rose 13 percent; and XL Capital Ltd., where shares increased by 10 percent. ... click here to read the rest of the article titled "Durable Goods Orders Up | Are We Buying Again?"

Durable Goods Orders Up | Are We Buying Again?

Orders for big-ticket items up

Have we hit the bottom? This way up!

And economists had expected orders for durable goods to fall 1.2 percent. Ha!

Health Insurers Willing to Cut Down Pre-Existing Premiums

Making deals with Congress

When Congress asked the health insurance industry if it would stop charging higher premiums to customers with pre-existing conditions, it said “sure.”

So maybe it wasn’t quite so simple, but that is what it boiled down to.

Comprehensive health insurance

Congress is examining how it can create a plan that will provide health insurance to all Americans. The health insurance industry is willing to negotiate, as it is staunchly opposed to the creation of a government-run program.

Congress is willing to work with the health insurance companies rather than jump into nationalized health care.

Tighter regulation

Insurers also said they could accept more regulation of benefits, underwriting practices and other activities. What’s in it for them? If they are willing to comply with the regulations, it would make a public program unnecessary.

A government-run program would directly compete with private health insurance companies. That could send private insurers running for installment loans to keep their businesses afloat.

Pre-existing policies

It’s an age-old health insurance industry policy to charge higher premiums for people who have a history of sickness or a pre-existing condition. This new agreement means that health insurance companies could no longer take into account a person’s current health condition or medical history. Essentially, health insurance premiums would become equal opportunity. ... click here to read the rest of the article titled "Health Insurers Willing to Cut Down Pre-Existing Premiums"

Tuesday, March 24, 2009

Daily Links: Free Money Edition

Too many open browser tabs! I’ve found a lot of good stuff lately, and I can’t devote full blog posts to all of it. All the same, I have to close some of these tabs. Here then are a few of the most interesting articles I’ve been collecting on my computer:

Over at Yahoo! Green, Lori Bongiorno has an article about how to find free stuff. “Obviously, seeking out free stuff is great for your budget, but it can also be good for the planet,” she says, linking to over 20 different web sites that let you get something for nothing.

Meanwhile, EcoSalon has a list of 20 fun things to do without spending a dime, including gardening, stargazing, exercising — and sex! This is a great resource for the next time you’re feeling bored.

Erica has some advice on how to negotiate your phone and cable bills to save thousands of dollars. While “thousands of dollars” probably seems like hyperbole to most of us, her step-by-step tips are a great guide to asking for rate reductions.

Finally, here’s another article from Yahoo! Green (which I’d never heard of before today): Jeff Yeager, the ultimate cheapskate, has an easy way to cut your food bill 25%: waste less. This may sound stupid, but from my experience, Yeager’s on the money: “According to government sources, roughly 25% of the food Americans buy goes to waste. That’s about one pound of food, per American, per day.” Yeager has some tips on how to reduce this problem — and save some money.

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Related Articles at Get Rich Slowly:

Knauf Drywall Dangerous to Your Health

Sulfur, other substances corroding metals

Let’s face it. If you’re fortunate enough to have purchased a new home or recently remodeled, life is good. It’s exciting to live in a fresh residence, filled with potential and the space for all-new dreams. Bigger mortgage payments may create the need for personal loans at times, but the joy of having a new home doesn’t fade. However, it would be a shame if toxic gases ruined your fun.

But that may be exactly what Knauf Drywall’s products are doing to new (and not so new) homeowners. Elisabeth Leamy and Susan Rucci report for ABC News (shocker; mainstream news late to the party!) that the Consumer Product Safety Commission is investigating whether drywall made in China may be emitting toxic gases.

Welcome to your new gas trap!

The building boom in the years before the American housing bubble burst brought naturally upped the demand for materials, but cataclysmic events like Hurricanes Katrina and Wilma created shortages. As a cheap alternative, some builders began buying up Chinese drywall. ... click here to read the rest of the article titled "Knauf Drywall Dangerous to Your Health"