Who are the Predators in the Neighborhood
Envision a lion tracking a defenseless deer, now think of a shark attacking a surfer in the ocean. Are you paralyzed with fear? A predator is an animal that naturally preys on others, or a person or a group that ruthlessly exploits others.
This can apply to some lending institutions. Let’s talk about who they are; they know who you are, and they know what you want to buy. These lenders meet the consumer at times of greatest need.
Problem: Check Cashing places; they charge 3%, that’s $3 dollars for every $100. If you get paid $1000, then they get $30 of your money. If 100 people did the same thing, that’s $3000 a day. Over 1 year’s time that’s more than $1 million. Solution: direct deposit or go to the bank that issued the check. You keep your $30.
Problem: Bill payment services; they charge “only” $1/bill. If you pay for 5 bills after cashing your check, that’s $5 more that you lose (multiply that by 100 people/day/year)
Solution: online bill pay “; it’s free and you can budget your bills in advance.
Rent to Own (Owe)
Problem: You rent a 65 inch 4K TV for “only“ $30 per week with a two-year contract, that’s affordable right? Pull out the handy-dandy calculator. $30/week x 52 weeks x 2 years = $3120
Solution: Walk into Walmart and purchased an RCA 65 inch, 4K, ultra high definition, Roku smart, LED TV. It would cost you $450. You could put it on layaway, after 4 months you will own it with the same $30, and have a manufacturer’s warranty.
Problem: Pawn shops minimize the value of your valuables. Then you pay high installments or a one time fee or you inadvertently transfer ownership.
Solution: Become your own banker and build up in emergency fund ($500-$1000 and if you use it replace it ASAP).
Don’t close your eyes while institutions are taking advantage of you financially.
For those of us who are looking to have the features of a big bank by using a smart phone, it’s available. You can direct deposit possibly use your money before payday, setup checking and savings accounts, use your mobile visa wallet, and get a visa debit card. The good companies have no fees; they get paid directly from visa each time the card is used. You get ATM access, automatic savings, free checks services, and free bill pay. No minimum balance is require