Leadpile's Blog» Financial

Tips for Saving Money

Jolene Phipps — Mon, 12 Dec 2011 20:39:32 +0000

As the end of December comes around and the beginning of January nears, people in general start re-evaluating their budget. A popular new years resolution is “saving money”. So if this is a common goal why is it so hard to accomplish?

Due to the economic recession many households are making less then before, making it hard to bank extra money. We also live in a society that thrives on promoting or advertising what you must have! The line between need and want often become crossed and we end up overspending for the month.

So how can we save? The answer lies in each one of us. We don’t have to strive for the moon – to overshoot and miss all together. If we take baby steps we can be successful, and if one month you fall down, don’t let it stop you! Get up and start over again. Here are a few money saving tips that can help you get started:

Set up a separate savings account and actually use it to save money.
Split your direct deposit so that $25.00 out of each paycheck goes into your savings account. (out of sight out of mind)
Save any change that you receive after making a cash purchase. (you will be surprised how fast this adds up)
Plan a monthly budget, start with you needs first i.e. Rent/mortgage, electricity, car payments etc. and then budget in an allotted dollar amount for wants and stick to it.
Write out your grocery list before you go shopping and only get what is on the list

If you start implementing even a couple of these suggestion you will be surprised by what you can save!

Happy Savings!

Payday Loans. . .Good or Evil?

Jolene Phipps — Wed, 16 Nov 2011 14:39:49 +0000

When you hear the words “Payday Loan” what comes to your mind?

Do you think of an industry out there taking advantage of consumers?
Or, do you think about an industry providing people with relief and peace of mind during this financial crisis?

Most people would say answer a. But is that true or do we need to educate ourselves regarding this part of the financial industry? Who are the people that need these payday loans and do they have other options?

According to www.census.gov the official poverty rate in 2010 was 15.1 percent, which was up from 14.3 percent in 2009. In 2010, 46.2 million people were in poverty, which was up from 43.6 million in 2009.

Those are staggering numbers. People are having a hard time making ends meet. From 2009 to 2010 an additional 2.6 million people were at poverty level. Where did they come from? Middle Class families? Low Income families? Who is out there helping them get back on their feet? The banks? With the foreclosures on homes, the increased account fees, overdraft fees and high credit guidelines… what do you think?

What sort of monthly expenses do all of us face? Rent/Mortgage, utility bills, insurance, car payment, food allowance just to name a few. If you are running out of money at the end of the month what would you sacrifice? Your electric bill? Your rent? Your car loan? Or just overdraft your bank account? All of those choices involve late fees or overdraft fees and may incur being harassed by credit agencies or having your electricity turned off, being kicked out of your home or having your vehicle repossessed. None of those sound like viable solutions to me.

According to www.wikipedia.org the definition for a payday loan is “a small, short-term loan that is intended to cover a borrower’s expenses until his or her next payday.” That is truly what a payday loan is there for. Many times you will hear payday opponents talk about high interest fees, but when you research these fees in comparison to bank charges and late fees of missing necessary payments and/or possible repossessions/foreclosures/losing electricity, going hungry etc. – which sounds better to you?

So before we judge the financial institutions giving payday loans or the people receiving such loans – let’s make sure that we look at the situation from all angles, and form an educated decision.

Airline Baggage Fees

matt@leadpile — Mon, 14 Nov 2011 17:32:23 +0000

I’m not much of a frequent air traveler however, when I do travel – I don’t want to spend an extra $240 for bag fees on a roundtrip ticket. Let me put it this way, I booked a ticket with a reputable, “I hope we won’t crash” airline to fly from Phoenix to Fort Lauderdale 3 months ago. I’ll tell you, I walked up to the counter to check in with my fiancé, handed out tickets to ticket agent, she started typing away and processing our tickets. We’re so excited to get on the plane and jet to paradise (no, not Fort Lauderdale… The Bahamas) to check out our where we’re getting married in February and meet out wedding planner and all the fun stuff that comes along with that.

Back to the counter, the agent asked “will you be checking any bags today?” Yes, we have 4 bags… She then got a huge smile on her face, rubbed hands together and said, “How would you like to pay for your bag fees, credit card or…? (I swear she stared drooling out of the side of her mouth like she just got back from the dentist getting a cavity filled) I cut her off and said, “what bag fees”? Sir, to check your bags on this flight its $120, how would you like to pay for that?

I had a heart attack fell on the floor, starting convulsing… After I recovered from said heart attack, I calmed myself down, talked it out with my fiancé a bit, sucked it up and put the $120 on my credit card.

Now, we’re on the plane, I’ve started drinking already, granted it was only 10AM, but I needed something to help with the pain..

Our trip was great, had a fabulous time on the beach, relaxing for 6 days, enjoying the sunshine and each others company..

…Now the trip is over. Not yet ready to get back to reality, but will be nice to be home however.

We’re all set, packed up, called a cab to get us from the hotel.. Got to the airport, walked up to the ticket counter gave the very nice lady our tickets, she asked us, “Will you be checking any bags with us today?” Yes, we will be checking 4 bags today.

The next words out of her mouth were the most unexpected words I would hear, “That will be $120 or your bag fees, how would you like to pay for those today?”

Holy $*@#$% I feel another heart attack coming on… I said to the lady behind the counter, I already paid for those in Phoenix. No Sir, I’m sorry, you only paid your bag fees for one way. WHAT!!!!! Are you kidding me?? I have to pay another $120 for bag fees??

Yes, that’s correct sir, how would you like to pay for that today?

At this point, I’m so frustrated I stared laughing in fear that I was going to do something stupid at the airport and end up in jail.

I gave her my credit card, ONCE AGAIN!!! She ran the card and said, “thank you sir, I hope you have a wonderful flight”. YEAH, WHATEVER LADY!!!

So after all of this, we were sitting on the plane, I said to my fiancé you know what, “we just paid $900 for roundtrip tickets that should have only cost us $650.

Again, I started drinking again, to ease the pain…

I have two words for every airline out there that charges bag fees… CON ARTIST!!

You may have to take out a PayDay Loan to pay your bag fees….

If you have a choice in choosing an airline that flies to your destination, I would recommend Southwest Airlines for your travels…

I hope you enjoyed this story. I still haven’t recovered from this completely. If anyone has recommendations on how to get through this, feel free to respond.

Safe travels everyone…

Payday Loans In Washington In Question

Mari Woods Holt — Wed, 27 Apr 2011 03:07:47 +0000

It seems that a lot of people in the state of Washington are concerned over the internet lending industry, but my worries are that they are not doing enough research before applying for an online payday loan. Just as in Washington,there are businesses all around the internet that are not legitimate. It is the job of consumers to educate yourself if you are providing your personal information to a website. There are numerous legitimate websites out there (including Leadpile’s) that allow a consumer to securely request a payday loan. If you are a consumer and needing that extra short term cash, do your homework on the website you are filling out your information and make sure you are completing an online form that is secure. If there are issues in WA, there are potentially issues all over the US, but a lot of this lies with the consumers and knowing what you are doing. Knowledge is power for consumers!

Congress Passes 2011 Budget Bill

Monica Vo — Fri, 15 Apr 2011 17:56:48 +0000

After months of haggling, the bill to cut $38.5 billion in the 2011 budget was passed. The House voted 260 – 167 with the house following 81 – 19 on the deal.

Programs that will see the largest reductions include the Environmental Protection Agency, which saw a $1.6 billion cut along with the high-speed rail projects, which had a $2.9 billion cut. Funding for building and repairing federal buildings were cut by $1 billion.

Others affected include funding for community health programs, food aid for poor women and children, emergency first responders and the National Endowment for the Arts. Measures that would have affected new health-care law and funding for Planned Parenthood of America were dropped.

Both sides agree $4 trillion needs to be cut from the deficit over the next 10 – 12 years. While there is still a lot of disagreement between the two parties as to how to lower the deficit, the 2012 budget plans will likely prove to be an even bigger battle.

Payday Loans-A Perfect Option For Many

Mari Woods Holt — Wed, 30 Mar 2011 16:19:22 +0000

There is a lot os scrutiny on payday loans and what their purpose is. However, many turn to these short term loans because they have no other option. These loans are overly scrutinized as bad for a consumer because their listed APR, which really is not applicable to a short term loan that does not last a year. The Missourian pointed up some positive benefits to the payday loans. For instance, “Research from the Federal Reserve Board indicates that such loans are not “predatory.” Rather, by supplying credit where otherwise there would be none, they help borrowers by enabling them to avoid less-desirable alternatives, such as fees associated with bounced checks, late bill payments and utility reconnections.” If the Federal Reserve Board understands there is value added to these types of loans, why are so many politicians and consumers looking down on payday loans as a “bad” option? Have they never had a reason to get a short term loan for some unexpected expense???? Probably not….

Canada Payday Loan Leads

Mari Woods Holt — Wed, 23 Mar 2011 20:41:22 +0000

Leadpile is looking for additional Canada payday lenders and also publishers that can help us generate additional US and Canada payday loan traffic. If you are working in this industry, please reach out to us and we can get you up and going ASAP! Some of the main specifics we are looking for in the Canada payday loan leads are:
1. Customers that are employed
2. Customers that have a checking account
3. Customers that have direct deposit
4. Preferably customers that live in the providences of British Columbia, Alberta or Ontario

Do Consumers Really Need A Checking Account?

Mari Woods Holt — Wed, 02 Mar 2011 21:59:40 +0000

There are many out there that are considered the “unbanked” consumer, and I wonder if it is because they choose to be that way or they are not able to obtain a bank account? However, is there a scenario where more people should become “unbanked” because the cost of having a traditional checking account for instance is a lot higher than other alternatives? Some say that the better alternative for those that carry very low balances on their checking account is to have a pre paid credit card. This often times works just like a checking account, however the fees related to this type of account are far less than maintaining a checking account. Reuters.com reports that the average person who has to maintain a checking account pays between $218 and $314 a year, whereas a person with a pre paid credit card is paying between $76 and $261. For someone that is maintaining such a small balance that amount of difference is a BIG deal.
Bottom line- traditional banks are not your only option with regards to paying your bills and maintaining your money. Look at online banks and other options like pre paid credit cards and compare the fees they charge to maintain your own money.

Possible Changes With MS Payday Lending Laws

Mari Woods Holt — Wed, 19 Jan 2011 20:17:06 +0000

Sounds like there might be some talk in Mississippi to potentially try and make some changes to the payday loan process. As we all know these short term loans are a necessity for many individuals, however some states are trying to incorporate stricter laws for the lenders. This is what appears to be trying to happen in MS. The proposed amendment would allow all consumers at least 28 days to pay on loans of $201 to $500. On loans of $200 or less, the $21.95 fee would be reduced to $20, and consumers would have up to 21 days to pay. The positive thing that this particular house banking committee chairman said was they are trying to help the consumers, but not get to a point where they are trying to put a legitimate business out of business (the lender). This seems to be something that more states should focus on. How can we continue to make sure the consumers are protected, but also allow them to get these short term loans…. and not put the lenders out of business. We all know consumers need these loans and some never expect they will be one that is in dire need of a short term payday loan, but for those situations where needed these loans must remain available to consumers. In order for loans to remain available to the consumers, we must also protect the lenders that are extending these loans. Stay tuned to see what happens with this MS amendment.

Tax Season – Are You Ready?

Natasha Aronov — Mon, 17 Jan 2011 16:24:32 +0000

Tax season is creeping up on us again.. and as we get closer, something to think about it how you would prepare for an audit.

According to WalletPop, the IRS is ramping up the number of audits in an attempt to close the gap between the taxes it believes it should have collected and what was actually collected. In 2001, the tax gap was $250 billion.

There are 2 types of audits, paper and people. A paper audit is most common – if the IRS thinks you made a mistake, they were notify you that they have recalculated your tax , they may also ask you to send additional documentation to back up claims you may have made. A audit in person is less common and are generally triggered by something very out of the ordinary on your return. Typically with an in person audit, the IRS will set up a time to meet with you and let you know ahead of time what documents they need to review.

A list of frequently asked tax audit questions can be found here: http://www.walletpop.com/2011/01/03/tax-audit-frequently-asked-questions/