How to Help the unbanked Save MoneyWritten by Ethel Robinson
The first and most basic step to financial wealth is having a checking or saving account. This sets stage for future endeavors, such as investing, homebuying, etc. Many people are unable or locked out to do this due to past bank situations. Some mistrust financial institution and hide their money around house. Others use money orders or cash for method of payment. This group of population is often referred to as unbanked. There are thousands upon thousands of people in arena. Some banks see this as a problem. These individual or families are potential customers, which mean more accounts, which means more money made by institution. Suppose there are 10,000- 15,000 individuals in a city without checking accounts. At a potential eight dollars per account, per month, can add up to a hefty sum year after year. And depending on profitability or bank this can be big business. While banks see unbanked as a problem, check cashing and payday loan companies see it as a windfall. These operations take advantage of an already bad situation making it worst, charging outrageous fees. Bringing in bucks. Many of these companies are located in low income areas and prey heavily on minorities. One way a person can save on fees from a check cashing business or to help in his every day business transactions is purchase a prepaid debit card. These cards can be used like a credit card. One would load money on card when needed. The difference is when using your debit or prepaid card you are using your own money. With a credit card you are using someone else money, accruing interest and a bill. These cards have Visa and Mastercard logo and can be used anywhere these cards are accepted nationwide or internationally. A person without a checking or saving account, can have his employer deposit money to card, eliminating need for a check cashing, saving money. Not only will it save employee, it can save employer money in check cost. Another way a person can save money, is by transferring money to others that have same type card for a minimal fee. Many minorities send money home weekly to families. With minimal transfer fee, more money can be sent home for family. Some cards charge as little as $2.45 per transfer.
| | Different Ways Of Dealing With Debt.Written by Www.creditandyou.com
Bills, creditors, debt collectors. Are you yearning for days when all you had to worry about was money in your piggy bank? If so, you are far from alone. Whether its illness, loss of a job, or simple overspending, it happens to best of us. But that doesn’t mean your financial situation needs to go from bad to worse.Steps You Can Take To Regain Control When Finances Get Out Of Hand... Developing A Budget: Start by doing a realistic assessment of how much money comes in and how much your spend. List income sources, “fixed” expenses (mortgage or rent, car, insurance) and expenses that vary (entertainment, clothing, recreation). Don’t leave anything out, no matter how trivial it seems. Obviously, necessities are your first priority. Then you can prioritize rest. The bottom line Is, that unless there’s money to cover, you’re going to have to cut back on spending. Contacting Your Creditors: Many creditors will work with you if you let them know you are having trouble making ends meet. Tell them why it’s difficult for you and try to work out a modified payment plan that reduces your payments to a more manageable level. Don’t let them give up on you – get to them before they resort to collection agency action. Dealing With Debt Collectors: Nobody wants to deal with bill collector – least of all you! But, should it happen, be sure you know rules. The Fair Debt Collection Practices Act is law that dictates how and when a debt collector may contact you ... A debt collector may not call you before 8a.m. or after 9p.m ... or at work if collector knows that your employer doesn’t approve of calls. Collectors may not harass you, make false statements, or use unfair practices when they try to collect a debt. Debt collectors must honor a written request from you to stop further contact. Bankruptcy: Personal bankruptcy is generally considered debt management tool of last resort because results are long-lasting and far-reaching. A bankruptcy stays on your credit report for 10 years, making it difficult to acquire credit, buy a home, get life insurance or sometimes even get a job. Learn more about bankruptcy
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