Power Link Dump: Gas Prices, Commodities, Asset Class Forecasts, & More

Here are some neat links from readers and interweb wanderings. I want to expand on them later as well.

Petrofix: Hedge and cap gas prices
A website that will let you control your cost of gasoline in the near future - for a price. If gas prices rise, they pay you the difference. If they fall, you are out the hedge price. The risk? Well, first I haven’t checked out the prices. Also you pay now, but who knows if the company will be around to fulfill their promises in the future. I’d rather hedge against higher gas by buying an oil ETF or use real options with better liquidity. (Disclosure: I did buy some OIL in my fun portfolio at end of 2008.)

The Great Commodities Debate with Larry Swedroe and Rick Ferri
A long multi-part series on HardAssetsInvestor about the role of commodities within a portfolio. Should you add them to your asset allocation? Swedroe and Ferri flesh out their arguments in a moderated battle, and I still don’t know who wins. However, I am glad I didn’t buy commodities the last two years or so when they were in vogue.

Jeremy Grantham / GMO 7-Year Asset Class Forecasts
Each month, Jeremy Grantham and GMO publishes on the web its predictions of the future return for various asset styles over the next seven years. You must register for free on his site to download them. Grantham has gotten increased publicity recently due to how accurate his previous predictions have been. You can read his 2009 Q1 newsletter “The Last Hurrah and Seven Lean Years” without registration. In the end, he’s just another guy with an opinion, but at least he is forthright about it.

Breakdown: The Credit CARD Act of 2009
Cap of StopBuyingCrap has a nice concise list of the changes to credit card laws coming in February 2010, in case you didn’t feel like reading the entire thing. It will be interesting to see how this shakes out. I think that rumors of annual fees or eliminating grace periods for people who don’t carry balances are just scare tactics by credit card lobbyists. They’ll continue to make money from merchant transaction fees, as always.

Google PowerMeter
An online tool that monitors your home’s power usage in real time. Currently only available in very limited areas where people have the right “smart meters” already installed. Sounds even cooler than my Kill-a-Watt energy meter.

Read more about Power Link Dump: Gas Prices, Commodities, Asset Class Forecasts, & More…

Amazing 16-Year-Old Finds Bernoulli Numbers Relationship

The universal language

Mathematics holds a vital place in a wide variety of fields, including the sciences and finance. Number calculations have proved the viability of countless scientific phenomenon. Money lenders generally need statistical data to evaluate a consumer’s financial situation before granting them a loan (although installment loans are easier to come by). Whatever the field, math leads to results.

According to David Landes of the Swedish news publication The Local, a 16-year-old student named Mohamed Altoumaimi from Falu Frigymnasium high school has achieved a significant accomplishment in the field of mathematics. He has derived a formula with Bernoulli numbers that is normally the territory for only seasoned professional mathematicians. Professors at prestigious Uppsala University have recognized the young man’s accomplishment, and hope to see more from him.

What are Bernoulli numbers?

Bernoulli numbers are “a sequence of rational numbers with deep connections to number theory,” according to Wikipedia. They’re named for the 17th century Swiss mathematician Jacob Bernoulli. There a number of practical applications to number theory, which is sometimes referred to as “pure” math. Such applications include cryptography, cryptanalysis, computer science and numerous uses in physics, such as (reference here): ... click here to read the rest of the article titled "Amazing 16-Year-Old Finds Bernoulli Numbers Relationship"

www.TreasuryHunt.gov | Is Your Cash Out There?

You can use the money

Got any unclaimed money out there? I’m not talking that quick cash loan with your name on it. I don’t mean the pennies from heaven that fall when you implore the universe to “Give me my cash now!” I’m talking about funds owed to you by the government. If you aren’t sure, take a look at www.TreasuryHunt.gov. It could mean money in the bank.

David Bogoslaw reports for Business Week that there are billions of dollars in unclaimed assets in the United States, held by state controllers and the U.S. Treasury. The Bureau of Public Debt goes so far as to say that there is currently more than $16.6 billion in unredeemed, mature U.S. savings bonds that are no longer earning interest - just sitting there doing nothing.

With www.TreasuryHunt.gov, you can put bonds to work that may be waiting for you. They can work at filling your wallet with cash. All you need is the original bond owner’s Social Security number. Most people don’t realize that even if the original bond holder is deceased, heirs can still redeem. Find documents at www.TreasuryHunt.gov that establish the relationship. A will or estate agreement will be necessary here, and you absolutely don’t want to provide false information. Doing so can expose you to perjury charges, according to the Treasury.

Piles and piles of money out there

Did you know that at the close of 2008, over $32 billion in unclaimed money in twiddling its thumbs in state treasuries across America? Nebraska Treasurer and National Association of Unclaimed Property Administrators (NAUPA) President Shane Osborn points out that such unclaimed money might include final paychecks employees never collected, retail gift certificates, forgotten bank accounts, overlooked stocks and bonds hidden away, consumer product rebate checks and utility deposits. ... click here to read the rest of the article titled "www.TreasuryHunt.gov | Is Your Cash Out There?"

June 2009 Calendar Printable, Don't Waste Money on Calendars

Didn’t think of printable June 2009 calendar

I don’t know why it never occurred to me to Google search “June 2009 calendar printable.” You see, I have been thinking for a while that I need to buy a calendar. You know, one of the old-fashioned, paper ones as opposed to the one that lives in my computer or phone.

I’ve been thinking about buying a calendar so I cam stick it up on the wall in my apartment so my “significant other” and I can both see it. That way, maybe I won’t have to repeatedly remind him about every event.

That’s a pretty big “maybe,” but still, it’s a good example of the fact that some old technology really is just more functional and convenient than any electronic device. The Internet has made infinite activities — such as getting quick payday loans — immeasurably easier, but sometimes you just need a calendar.

Didn’t want to spring for it

So, this need for a calendar started nagging at me as summer was suddenly upon us and the event invitations started rolling in. Weddings. Rallies. Parties. Camping trips. I really wanted to have all that stuff up on the wall where I could see it every day.

However, I thought, it’s already May. If I buy a calendar I’ll be wasting five whole months worth of paper, not to mention paying for a whole calendar and only using a little more than half of it.

The solution: new technology

That brings us up to today, when I saw the term “June 2009 calendar printable” in Google Trends.” The only thing I could thing was “Duh!” ... click here to read the rest of the article titled "June 2009 Calendar Printable, Don't Waste Money on Calendars"

One time, I went canoeing with my friend

He decided that he wanted to do all the work so I just laid back and let him. Why would I work unless it was absolutely necessary? I am kind of lazy like that. While we were out there, it started to rain. That is never a good thing. I hate the rain. We tried desperately to get back quickly. On our way back, the canoe tipped and we fell into the water. Luckily we were already drenched from the rain too much to care about falling into the lake. All in all, it was pretty fun until the disaster that happened. We all learn from our mistakes.

I remember that in high school we weren’t allowed to wear bandannas

All of the staff thought that it meant the person wearing it was in a gang. I tried to wear one for a band program once. The whole idea of the program was that we were in jail. We were supposed to dress up in orange jumpsuits and do our hair as if we were just in jail. When I wore a bandanna, I got sent to the principal's office along with a couple other people in it. They were mad at us for our bandannas but not the costumes that implied we were in jail. Sometimes things are so messed up in this world of ours.

I realized today that there are about a million Beethoven movies.

I was watching one on the TV with a friend. I wasn't sure which one it was. Then the title was announced as Beethoven's fifth. I can't even believe they made that many movies about a dog. Why would anybody be that interested in a dog and the things he does? I know dogs can be amazing animals. I know that people love their dogs very much, but why would anyone be that interesting in a movie about what a dog does? I just don't understand it I guess. It's just one of the many mysteries in life.

What Ever Happened to Hobos?

Ok, this is totally random, but the other day I was thinking about how I dressed up as a hobo for Halloween when I was a kid. I wore a tweed cap, an old blazer of my dad’s which I think I was allowed to tear up a little, and his old, raggedy boots. I also smeared eye shadow on my face to look like beard stubble, and carried a bandanna on a stick, which I used to stash the candy I collected. If you look at the Wikipedia entry for hobo, you’ll see exactly the look I was going for. Except I also wore a pair of large plastic ears, I guess just to increase the pathos!

Now, a hobo is not exactly just a poor, homeless person. The term has slightly more romantic connotations, as hobos were known for riding railroad cars all over the country, and they had all these cool slang words and code symbols to help each other out. But still… hobos are poor and homeless.

So do kids still think it’s fun to play hobo, or to dress up as one on Halloween? But certainly no kid ever says “hey, I think I’ll be a grungy homeless person for Halloween,” right? Nowadays it seems like they all want to be something far more glamorous, and the life of a poor, itinerant person is no longer romanticized. But I don’t have kids, so I may be wrong… what do you think?

Read more about What Ever Happened to Hobos?…

Don’t Be a Loser and Wait Too Long

No matter how careful and diligent you are with your finances, something important will eventually be forgotten. It could be a bill payment, or it could simply be overpaying for an impulse purchase. For me, it was investing for my retirement.

You heard it correctly. I failed to invest in a retirement account this year.

As you know, I quit my job several months ago. While I did transfer my 401k to an IRA and continued to manage my finances through my taxable accounts, I did not setup a retirement account now that 401k isn’t an option anymore.

At first, I thought about the different options (simple IRA, SEP IRA etc), and the complications delayed the decision. Then, it was the market downturn in February that pushed it back a few more weeks. After, the market upturn got me busy managing my much bigger taxable investment portfolio. Oh I needed to make sure I find the right stock broker, and that I pick the right type of account. I also need to make sure I put in the right amount every month, because too much money means I can’t use it as a down payment, while too little means I’m not taking advantage. Then..

Wait a minute… You know what these are? Excuses! Why does anything I said above change the fact that I needed to invest in a retirement account. Perhaps it’s beneficial to find the perfect amount to contribute every month, and it’s probably good to find the best stock broker to maximize the benefits. However, if investing immediately is better than waiting regardless of the choices that I make, isn’t it better to “just do it” already?

A Little Lesson Over Here

Regular readers know that I’m a huge believer in taking action. In fact, it’s more beneficial even if you end up making mistakes. Here’s an example. Let’s say you need to get from point A to B and the earlier you get to your destination, the better. If you start right away but end up taking one year to get to your destination, isn’t it better than spending one year to plan the route that takes one month?

Back to My Investment Procrastination

There’s really no point in beating myself about what’s already happened since the future is much more important. The good news is that even though I missed a few months of contributions, I can catch up by putting in a bigger lump sum. Sure, I already missed a good chunk of gains that my contributions would’ve had but in the big picture where I will be contributing for the next 30+ years, it’s not that bad.

What I Will Do:

• Open an SEP IRA account (TradeKing is a good choice and may not be the absolute cheapest like others. However, I feel better with them because of the lack of bad publicity.)
• Contribute $500 a month to the account and invest regularly
• Monitor the Pros and Cons of using this broker and see if I need to change brokers

I may end up not liking TradeKing, or find a better stock broker for this type of retirement account. I may find that the contribution is too high (or too low) for my needs. I might even find out that SEP IRA isn’t the best choice for my circumstances. However, what I won’t (and shouldn’t) do is wait around because investing in an account is always better than waiting.

You can always wait for the boat with the perfect route, but don’t wait so long that the entire trip ends up being meaningless.

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Related Articles at Personal Finance Blog by Money Ning:

• Do Not Wait and Start Saving Immediately
• Still a bull tone!
• Patience Will Keep Us from Spending Unnecessary Money
• The Mistake of Waiting Till The Last Minute
• Money Mailbox Friday - Letter from the Citations Department

Read more of Don't Be a Loser and Wait Too Long…

Swine Flu’s Vicious Trap:

Barely had the world recovered from the clutches of dangerous bird flu, it’s now facing a new menace- Swine Flu or H1N1 influenza. It has been just about a couple of weeks since the first Swine Flu case was reported in Mexico. Many countries have been kept on a high alert as within a short span of time, the vicious trap of Swine Flu has managed to spread across more than 21 countries with around 1490 cases being reported, and has claimed more than 100 lives. I think that the extent of its danger can be measured from the fact that the Swine Flu alert level from the WHO continues to remain at Phase Five.

Kevin Trudeau's Books Deemed Fraud | Save Your Money

Kevin Trudeau’s ups and downs

You may have seen an infomercial for any number of Kevin Trudeau products. He has hawked several books, including “Natural Cures ‘They’ Don’t Want You to Know About.”

Kevin Trudeau’s books have made it onto the best-sellers list as consumers seeking help hit up payday lenders so they could buy the books as soon as possible. Unfortunately for Kevin Trudeau, a couple of his books have also been labeled fraud by consumer agencies, and he has been fined tens of millions of  dollars for violating an agreement to refrain from being in any way involved with more infomercials.

Kevin Trudeau history

Let’s take a look at the beginning of Kevin Trudeau’s career. In 1991 Kevin Trudeau was convicted of credit card fraud. Christopher Pascale of suite101.com reports that after Kevin Trudeau completed his sentence, he and his former cell mate “started an illegal pyramid scheme based around the concept of multi-level marketing, selling vitamins.”

This began Kevin Trudeau’s stint in selling “health care” products.

The many products of Kevin Trudeau

In thousands of hours of infomercials, Kevin Trudeau sold products to cure hair loss and to cure addiction. He advertised books on improving your memory and released best-selling “The Weight Loss  Cure ‘They’ Don’t Want You to Know About.’ That’s when Trudeau’s Troubles Part II began. ... click here to read the rest of the article titled "Kevin Trudeau's Books Deemed Fraud | Save Your Money"

Cookies are the best treats

Think about it, I don’t know a single person who doesn’t like cookies. They come in so many flavors, shapes, and sizes. Your cookie options are unlimited. The best all time cookie has to be good old fashioned chocolate chip. They’re classic and always tasty, as long as you don’t burn them. The best part of the cookie is making them from scratch. They taste so much better when homemade and it’s a blast making them, especially with little kids. And the best part of homemaking cookies is eating the cookie dough while there’s a batch in the oven. There is nothing better than homemade cookie dough. Now I have to go make some cookies. All this talk about them is making me hungry.

Business Credit Cards | Are you Victim of Advanta Freeze?

Business credit cards to be shut off

On Saturday, up to 1 million business credit cards through Advanta Bank Corp. will be shut down, frozen, terminated, however you want to put it.

What is the owner of an Advanta business credit card to do? There are a couple of things you should find out before you panic.

Business credit cards without personal guarantee

If you set up your Advanta business credit card as business credit without personal guarantee, that means you won’t have to dip into your personal bank account to pay you Advanta credit card bill.

The process of setting up business credit cards without personal guarantee is pretty involved, it’s not like getting fast payday loans. However, if you complete the process your personal finances will remain intact even if your business goes bankrupt.

Sudden credit freeze

With little to no warning, Advanta plans to shut down nearly 1 million business credit card accounts on Saturday.

Advanta sent notifications to customers via snail mail, the company says. However, because of “postal problems,” customers will likely receive notice that they can no longer use their Advanta business card on or before the day their accounts are frozen. Read the full story here. ... click here to read the rest of the article titled "Business Credit Cards | Are you Victim of Advanta Freeze?"

Anti-Wrinkle Eye Cream

The eyes are the reflectors of the mind. Eyes are also the ventilator to the soul. Therefore watching the eyes, it can be said easily whether the guy is healthy or not. A person's age can be guessed to watch the fine lines and wrinkles on the skin of the eyes. A good and much qualitative anti wrinkle eye cream will help persons to remove the deep scratches and wrinkles from the skin around the eyes. In addition, algae is a natural anti-wrinkle component which can also remove the wrinkles from the skin texture of the eyes. Nano-lipid component can also be applied to the skin. However creams which contain adequate amount of the CoQ10 are much efficient and effective to the betterment of the condition of the skin texture. Coenzyme 10 which is a well known antioxidant can bring charisma and luster to the skin surface around the eyes. Eyederma™, Z. Bigatti ReStoration Eye Return™ including Okusil™ are much standard and qualitative medications for the removal of the wrin kles from the skin of eyes.

Mint Map: Real Estate By State

We don’t recommend you try to time the housing market but, if you’re in the market for a new home, it helps to pay attention to its cyclical nature. When times are hard, prices drop and the market becomes more attractive. When more people get in, prices naturally rise. While there are still deals to be had, this map shows that some of the regions that were hit hardest by the housing crisis in 2007 and 2008 have begun to bounce back in early 2009 with increased sales numbers. With sale prices of homes plummeting as much as 50% in some regions, more people have been jumping into the market with hopes of getting a great deal, especially with 30 year fixed rates falling below 5% for the first time in recent memory. The metropolitan areas that are highlighted are those with the highest percentage of change in median sales prices, for better or worse. The highest percentage increases in home sales are in areas where prices have dropped the most over the past year, wh ich is an encouraging sign as bargain hunters see new opportunities. Further, the decrease in prices and attractive housing credits have finally made it possible for many first-time homebuyers to afford a home in the once red-hot areas like Orange County, Phoenix, and Las Vegas. While there are only six states that have experienced increases in sales volume in the past year, most of those positive changes have been drastic. Arizona has seen a 50% jump, California over 80% and Nevada an impressive 117% increase from 2008. Depending on where you live, the housing market may be in either a boom or bust cycle. Let us know in the comments how real estate is looking in your hometown, whether it is on the map or not.

Click to enlarge the map below:

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Today I painted my nieces room

She turned six and it was her birthday present. We painted it purple and pink. Those happen to be her two favorite colors. We painted the whole room a light pink. After painting that, we painted a couple squares of purple. The purple was magnetic paint. I had never heard of it before but use it now in my nieces bedrooms. It makes the wall magnetic so that kids can put magnets on their wall. It is much easier than putting a whole bunch of holes in the wall. We put pink and purple butterflies in the corners of everything. She really loves it and I am proud of my work.

I am not really a fan of candles

I know some people really are, but I just don't understand them. My dad really likes to buy candles. Whenever I am buying presents for him I always get him candles. My mom really likes candles too but isn't as obsessed as my dad is. I don't like the smells of most candles. It might be better than the smell of some people's bedrooms or homes but are still annoying. They just give rooms this really fake fruity smell. Most candles smell awful anyway. There are only an occasional few that actually smell good. I'm glad I don't have to deal with it.

Advanta Customers Beware: Credit Line is About to be Cut Off

Advanta to shut down credit without notice

Earlier this month, Advanta Bank Corp. announced that it will be shutting down customer’s credit lines on June 10. However, on Friday Advanta changed the cutoff date to May 30, which is Saturday.

To make matters worse, The Consumerist reports that an Advanta representative says that because of “postal problems,” customers will not receive notice that their credit lines are being shut down until the end of the month.

Left in the dark

News media have reported on the impending credit cutoff, but Advanta Bank Corp. has not contacted customers through any means other than the “snail mail” that will reportedly not reach card holders until their credit is already shut down.

Advanta mainly supplies credit cards to small businesses. As I am sure small business owners know, there are no easy loans out there right now. Advanta customers who were planning to rely on credit from Advanta Bank Corp. to keep their businesses going will find themselves in a tough situation.

How many will be affected?

Advanta says that it will freeze nearly 1 million accounts May 30. Advanta Bank Corp says it has lost $76 million because of customers defaulting on payments.

Advanta says shutting off credit lines will be a step toward cutting its losses and preserving its capital. Despite the fact that Advanta customers will have their credit lines terminated without prior warning, they are still expected to pay their debts. ... click here to read the rest of the article titled "Advanta Customers Beware: Credit Line is About to be Cut Off"

5/25 Only: Old Navy Flag T-Shirts 2 for $5

As you celebrate and observe this Memorial Day, here is a quick deal. Old Navy’s popular Flag t-shirts are Buy 1 Get 1 Free today, May 25th, making then 2 for $5. Only in stores. All colors, all sizes. Outfit the family for cheap? More Old Navy coupons here.

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Frugal Living is Great Edition

I feel better and better about being frugal as I age. I’m no longer questioning why I don’t feel like wasting money whenever I go out. I no longer feel weird for not needing to splurge and I’m no longer wondering why I am different.

Why should I?

At a young age, I’m:

• Debt Free
• Have an Emergency Fund for the Rainy Day
• Satisfied and Happy
• Looking Forward for Everyday

Don’t let anyone tell you frugal living isn’t the way to go.  I’m glad I’m different.

PF Articles to Enjoy Today

Happy belated BDay to David @ My Two Dollars! He talks about not wanting any gifts on this post, but perhaps he wouldn’t say no to a link to his site?

The Smarter Wallet chimes in on the secrets to being a millionaire. While not everyone will become one by reading it, the article will sure help you become more successful!

Squawkfox has done it again - A huge list of 41 bloggers’ best money advice all in one article!

Not All ETFs and Index funds are Low Cost, says ABC. I couldn’t agree more. No matter what the description says, you absolutely need to do your research or else you are probably missing out.

What do you think of the new credit card bill signed by president Obama? Is it universally good like the politics claim it is?

I really liked the Morningstar memberships (especially when there’s a free option). Find out what they are at Investing School.

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Related Articles at Personal Finance Blog by Money Ning:

• What Drives You to Be Frugal
• Frugal Living
• Inheriting Generations of Frugal Living
• Influence Others to Save Is An Effective Frugal Tip
• How to Reassure Yourself that Frugal Living Make Sense

Read more of Frugal Living is Great Edition…

I wonder why cats and dogs don't get along most of the time.

I know you can train them to like each other or at least get each one to get used to being around the other. But why don’t they just naturally get along? I know it sounds like a silly question but it really got me thinking. Maybe it’s because they’re such separate species. Dogs seem to have this aggressive instinct to be the pack leader and defend themselves and cats seem to have an almost opposite instinct of survival at all costs. It would be interesting to get inside a cat’s or dog’s mind and see what they are thinking of.

Laughing at everything she did

Today I was watching my one year old niece and just laughing at everything she did. We have a shoe basket by the front door and when people come over they take off their shoes and put them by the basket. We don’t ask or demand that they do, I guess they just figure that they should be polite or whatever. Anyway, my one year old walks over and tried to put on her aunt’s flip flops. It was hilarious to watch. It took her close to five minutes to first figure out how to put them on and then close to ten to figure out how to walk with them on. She was falling and tripping all over the place. Good thing she was laughing too. Everyone in the room was in hysteric

Corn dogs are disgusting!

They’re just a hot dog on a stick surrounded by a layer of cornbread. Hot dogs are disgusting enough by themselves so who thought that wrapping them in cornbread would make them tasty? Whenever I have to eat a corn dog I either drown it in a combination of ketchup and spicy mustard or I take off the bread and eat just the hot dog. My kids love them though and they are pretty dang cheap for a whole box of them. They make a really easy and cheap lunch so maybe they’re not so bad after all.

Flashlights are so cool.

You just turn them on and you can see in the dark, almost like it’s daylight. They’re also portable so they’re easy to take places like night hiking, or discovering deep dark places like extinct lava tubes or caves. They’re a must for first aid kits or just to have around the house in case your power goes out. What’s amazing is there are flashlights that you can wind so you won’t ever have to worry about the batteries being mysteriously dead or running out of batteries. Growing up we always had a small flashlight by our bed in case an earthquake happened and the power went out. I’m going to do the same for my family.

Memorial Day Sales | Save Some Money This Weekend

Memorial Day and its many traditions

Everyone has an opinion about what constitutes summer fun.

Like many holidays, Memorial Day has morphed somewhat from its original. The day now is marked by several traditions that don’t really have much to do with honoring fallen soldiers.

Many people view Memorial Day, and the weekend preceding it, as a celebration of the imminent summer. Barbecues, picnics, camping, boating an hiking are the appropriate way to welcome summer, according to many. But some say “as seasons change, so must your wardrobe.” And voila, the tradition of Memorial Day Sales was born.

Stock up for summer

Of course, you can get many things besides clothing on sale during Memorial Day weekend. If you’re thinking “I need to spend my cash now!” you’ll have endless opportunities. In fact, if you are not into all of that sunshine and natures, you can take advantage of many Memorial Day sales without leaving your computer.

MemorialDaySales.us/shop is a great resource for finding Memorial Day sales online. If you want a lengthy list of Memorial Day sales, visit that site. Here are some highlights.

Today only

Some of the places holding Memorial Day sales are actually holding sales today and only today. Overstock.com is offering 10 percent off of health and beauty items today in its “Select Spring Clearance” sale.

Altrec.com is offering up to 60 percent off on summer footwear through the end of the day, and 15 percent off Mammut gear. Wine.com is offering a “summer stock-up” deal; it’s 10 percent off when you buy 12 bottles. ... click here to read the rest of the article titled "Memorial Day Sales | Save Some Money This Weekend"

Ohio Payday Lenders Close in Wake of Regulations

Payday loans a tough business

Last year, the Ohio payday lending industry and its advocates fought to get harsh restrictions in the state overturned, but the policies stayed put.

This year, more than a third of the payday loan businesses in the state have closed down, much to the dismay of their former customers.

Regulated out of business

Ohio law places a cap on fees that payday lenders can charge, and it limits residents to four per year. Businesses warned that these laws would shut them down, and now that has become a reality.

Chron.com says:

There were about 1,600 retail locations across Ohio when the new interest rules went into effect last year, state officials said. About 960 remain, and those are under fire from critics who want to enact even tougher rules beyond the 28 percent cap on interest.

Struggling to survive

Payday lending in Ohio used to bring in a decent amount of business in Ohio. At least that’s what this guy said:

“The change has been a tremendous blow to the company,” said Ted Saunders, chief executive of Columbus-based CheckSmart. “I’ve closed 10 or 15 stores, and I’ve got more on the watch list. We were on a growth spurt until this happened.”

Words from payday loan users

Payday loan company owners aren’t the only people who object to the harsh restrictions and subsequent shutdowns. Some payday loan customers talked to Chron.com:

Some customers still say that payday loans are best for their needs.

“Are you going to loan me $200 for two weeks for $30? I don’t think so,” said Linda Coleman, 28, a machine operator and nursing student from suburban Colerain Township. ... click here to read the rest of the article titled "Ohio Payday Lenders Close in Wake of Regulations"

Feeling Flush

I’m not sure why, but I’ve built up quite a cushion in my Chase savings account– just over $12,000 as I’m writing this. This is despite having made an extra mortgage payment of $2,000 just recently, and some transfers to other accounts. I use this Chase account to receive my direct deposit pay, and transfer money into my checking account to pay bills. I wondered if I’d made a mistake and forgotten to pay a bill, but apparently I’m all caught up!
The problem is that this cash is barely earning any interest. I think it’s time to start shopping for some mutual funds again, and also transfer some money to my other savings account at FNBO, which earns more interest. I suppose I could also make another additional principal payment on my mortgage. In any case, not being able to decide what to do with over $10,000 is a nice problem to have!

Read more about Feeling Flush…