Happy Thanksgiving to Everyone

2010-2011 Mailing List and Article Contributors Wanted

2010-2011 Mailing List: 
The mailing list that was established earlier this year is currently in the process of being updated.  The mailing list consists of former and current clients, and prospective clients for the purpose of receiving updated information on services that may be beneficial to their daily business process through outsourcing (or contracting out) tasks and/or functions.

Business professionals interested in receiving descriptive information should email their contact information to include the following information to officeservices@asstservices.com with “2010-2011 Mailing List” in the subject line.

• Full name
• Title
• Company name
• Complete address
• Contact phone number
• Fax number (if applicable)
• Email address
• Web address (if applicable)
• Indicate if prefer to receive information via email, mail or both.

New information for Assistant Services & Associates is scheduled to go out Wednesday, December 1.  Members of the mailing list also have the opportunity to review the current Policy & Procedure and Fraud Detection Policy that is revised annually and will be available January 4, 2011.

Newsletter:
The “In The Know Headlines” is a business article currently posted on the website.  In the efforts of expanding its existence beyond the web site I am looking for volunteer contributing writers willing to submit articles in the following topics:

• Business and Finance
• Employment 
• Health Care 
• Education
• Calendar that will list health and employment fairs, education opportunities, and business workshops and seminars.

The run of the newsletter will be every two months, with January – February 2011 scheduled for January 4.  Interested individuals should have some experience writing articles of this capacity.  For immediate consideration interested individuals should send a sample article, include their name and title (if they are with a company, but not mandatory), describe their experience in writing articles and email to officeservices@asstservices.com with “Newsletter Contributor” in the subject line.

A final decision will be made by Wednesday, December 15, with all required articles due Monday December 27, no later than Thursday, December 30 for final review.

Best Sites for Researching Business Credit Cards

Recently a reader posted a comment about where to go to find good business credit cards for his business.  It tasked me to research sites out there, including share information on sites I visit regularly, to be able to provide a some information on good business credit cards small businesses can take advantage of to grow their business operation.   Hope this helps.

• Business.com caters to finding credit cards for small businesses, listing resources where you can go to find what’s suitable to the business owner.
• Business Credit Cards is a site that specifically lists a good range of credit cards for both business and personal.  This is one site I frequently go to.  I especially like this site because they list credit cards for all credit history types.  It’s just a matter of choosing the right one suitable for you.  You also have the option of applying for any of the cards depending on your immediate needs and credit worthiness.
• Creditcards.com is also another good resource.  They offer a wide range of credit cards to choose from.   They show the credit cards that offer cash back and airlines miles, as well as provide you the ability to best keep track of the expenses when using these cards.  You can read  articles and tips on credit cards for small business.

There are other resources out there that will detail the best credit cards for businesses.  You should choose the best one based on the best APR, features, and suitable to your business needs. 

Having said that, Capital One is the hottest business card on the market to date.  If I had to recommend a business credit card, that would be the one I would choose.  They offer a good APR, the have a selection to choose from, and good payment options.

7 Hot Careers Through 2018

Learn which careers are expected to experience fast growth and offer plenty of opportunities.

What are your top priorities for a new career?

-Good pay?
-Stability?
-Job security for the foreseeable future?

If a combination of all three is what you’re looking for, you’re in luck. Even in a tough job market, there are plenty of industries and jobs experiencing fast growth through 2018 – and beyond.

You can qualify for many of these jobs quickly with a degree or certificate program. Even better, you may not even have to leave your current job to do it, since many training programs are available online or on a part-time basis.

Are you looking to change careers and you want to know which careers are thriving in today’s job market?  There are hot job opportunities through 2018.

Hot Career #1: Accountant/Auditor

Accountants keep finances in order by taking care of things like overseeing cash flow and filing tax paperwork. Auditors analyze finances to ensure everything is being done according to the law.

Hot factors:

• There were 1.3 million accountant and auditor jobs in 2008…
• And the Department of Labor projects about 279,400 new positions to be added through 2018.
• Changing financial laws, evolving regulations, and more detailed scrutiny of company finances mean fast job growth for accountants.

Training options: 

Bachelor’s degree in accounting
Bachelor’s degree in finance

Median salary: $59,430

[Search for Accounting and Business schools now]

Hot Career #2: Medical Assistant

As a medical assistant in the growing health care field, you’ll work to keep a hospital, clinic, or doctor’s office running smoothly by keeping records and/or taking patients’ vital signs.

[Find Medical Assistant schools near you]

Hot factors:

• Medical assistants held a whopping 483,600 jobs in 2008, and that number is projected to grow…
• In fact, medical assisting is one of the fastest growing jobs out there. The Department of Labor projects a 34 percent growth rate from 2008-2018.
• More health care facilities are employing people who can do administrative as well as clinical work, which means more opportunities for medical assistants with the right training.

Training options:
Associate’s degree in medical assisting
Medical assistant certificate program

Median salary: $28,300

[Search for Medical Assistant training programs]

Hot Career #3: Financial Examiner

As a financial examiner, you’ll make sure that businesses follow financial laws and regulations. After recent financial scandals, there’s lots of demand for workers who can help keep organizations finances in order and follow current regulations.

Why it’s hot:

• This job should grow much faster than average (41 percent more job openings) over the next few years.
• Businesses are increasingly aware of the need to follow financial regulations.
• More government oversight of the financial sector means more jobs.

Training options:
Bachelor’s degree in accounting

Median salary: $70,930

[Find local and online Accounting schools now]

Hot Career #4: Dental Assistant

Dental assistants should find lots of opportunities in this growing field to help patients care for their teeth and help the dentist with paperwork and equipment.

Why it’s hot:

• This in an in-demand job with 36 percent more openings predicted.
• Population growth and increasing dental health for older people will drive the need for dental workers.
• Dental patients are demanding flexible hours, so evening and weekend appointments mean more assistants will be needed.

Training options:
Associate’s degree in dental assisting
Dental assistant certificate

Median salary: $32,380

[Start searching for Dental Assistant schools now]

Hot Career #5: Physical Therapist Assistant

If you want a stable career with rewarding work, this may be just the right fit for you. Assistants help patients recover after an injury or illness. They work directly with patients and perform support tasks like record-keeping.

Why it’s hot:

• As the baby boomers age, there will be more demand for physical therapy to recover from illness and injury.
• Insurance companies are starting to cover more procedures, so more workers will be needed.
• In fact, the Department of Labor expects to see fast growth in job openings for this position.

Training options:
Associate’s degree in physical therapy
Physical therapy certificate

Salary: $46,140

[Search for Patient Care and Therapy schools near you]

Hot Career #6: Registered Nurse

Working in hospitals, clinics, and doctor’s offices to keep patients healthy and treat illnesses and injuries is a job that’s lucrative and fulfilling.

Why it’s hot:

• More emphasis on preventive care and aging baby boomers will drive demand.
• Health care reform means more people will be insured, so more nurses will be needed.
• Half a million new nurses will be needed by 2018.

Training options:
Associate’s degree in nursing
Bachelor’s degree in nursing
Nursing diploma

Median salary: $62,450

[Find Nursing schools near you]

Hot Career #7: Computer Software Engineer, Applications

Designing and creating programs to run on digital devices – from laptops to cell phones – is a booming business. This field is expecting even further growth, especially in the mobile arena.

Hot factors:

• It’s one of the fastest growing careers… and with technology continually evolving, that’s no surprise.
• The Department of Labor predicts a 34 percent increase in jobs between 2008 and 2018.
• They number of new jobs to be created: 175,100.

Training options:
Bachelor’s degree in computer programming
Bachelor’s degree in computer engineering

Median salary: $85,430

All salary data is from the U.S. Department of Labor, May 2008.

10 Things the HR Department Won’t Tell You

Partner by

Woman’s Day, on Tue Oct 26, 2010 9:23am PDT

By Kimberly Fusaro

If everything’s going smoothly, you probably won’t interact with the folks in human resources much between the day you’re hired and your last day with the company. But every day in between, it’s their responsibility to make sure you’re doing your job well. Which means they know a lot more than you might think. We checked in with human resources experts to see what your current employer is keeping tabs on—and how your next employer could be judging you based on a whole lot more than the résumé you submitted.

 1. Background checks have gone beyond Google.
Before calling in applicants for a job interview, HR will snoop around online to make sure there are no virtual red flags. “Social media ‘stalking’ has become the norm—especially at larger companies,” says Mary Hladio, who worked in human resources for more than 15 years and is currently CEO of leadership group Ember Carriers. “Beyond typing names into a search engine, companies will also employ sophisticated online monitoring platforms that dig even deeper. If there’s something on the Internet you wouldn’t want your boss to see, it’s probably in your best interest to take it down.”

2. Arriving super-early for an interview is almost as bad as arriving late.
Of course, if someone shows up late for an interview, he or she isn’t going to get a callback, says Amy Habedank, human resources manager of Pinnacle Services. But she’s also hesitant to hire someone who shows up an hour early. “It feels like they have no regard for my time,” she says. If you’re headed to a job interview, don’t show up more than 10 minutes before; if you get there with time to spare, catch up on email or listen to relaxing music before heading in.

3. Your physical appearance matters.
“Research suggests that the decision to hire or to deselect a candidate is made within the first 90 seconds of the interview,” says human resources consultant Steve Cohen, author of Mess Management: Lessons from a Corporate Hit Man. That means you must arrive at a job interview in a clean, well-put-together outfit with neat fingernails, smoothed-down hair and fresh breath. Also, think twice about any eccentricities. “Some people might be able to look past pink hair and black nail polish, but it will affect their decision,” says Hladio.

Check out a foolproof outfit that’s perfect for a job interview.

4. Personal hygiene counts, too.
Smelling like cigarette smoke can work against you, as can having body odor. Because both conditions are within an individual’s control, an employee or job candidate who smells bad is viewed as lacking professionalism, Cohen says. Plus, an employee who smells bad is a public relations liability. Most companies won’t tolerate poor personal hygiene in an employee or potential employee.

5. You won’t get hired to work from home if you aren’t a “home professional.”
If you’re applying for a work-from-home position, you need to present yourself as a “home professional” from the get-go. This means that when HR first calls to express interest, there better not be crying babies or barking dogs in the background. “When an applicant has no control over the noise level in her home, it’s a signal that she’s not ready for virtual work,” says Shilonda Downing, who’s in charge of hiring for Virtual Work Team. You’ll also need a quiet home office space if you’re petitioning your current boss for work-from-home hours.

6. Being overweight can work against you.
Even though overweight individuals can be fast on their feet and slim people can be lazy, an interviewer might assume an obese job candidate won’t be able to keep up at a “high-performance” company. Cohen gives the example of a manufacturing company that prided itself on efficiency and speed. Every prospective employee was taken on a walking tour of the large plant before being hired. If the prospect couldn’t keep up with the owner’s fast pace on the facility tour, he or she wouldn’t be hired. If you’re worried your size may be working against you, Cohen suggests emphasizing how adept and resourceful you are.

7. Ageism (illegally) exists.
“People who have seen their 50th birthday are losing jobs to younger people, even though ageism is illegal,” says Dennis Kravetz, head of human resources consulting firm Kravetz Associates. Older employees hoping for a promotion need to be extra-vigilant about staying on top of trends and technology. In a job interview, emphasize what you’ve learned from years of experience and explain how you’ve grown along with your industry.

8. Your relationship is being monitored if you’re dating a coworker.
“Sometimes people meet their future spouse at the office,” says Cohen. “But mostly, dating coworkers is risky.” Even if dating among colleagues is allowed, a relationship that ends badly is going to affect other people in the office. It gets extra-tricky if a romantic relationship between a supervisor and his or her subordinate sours. “Human resources is watching behavior that could turn litigious,” warns former human resources executive J.T. O’Donnell, founder of Careerealism.com.

9. Your Internet usage is probably being documented.
Don’t assume there’s any level of confidentiality when it comes to company technology, whether it’s email, voicemail or indiscriminate use of the Internet, Cohen says. “In a situation where an employee’s integrity or credibility is in question, there will always be an audit of her computer usage.” That means your boss probably isn’t randomly checking to see how often you log on to Facebook. But if he’s looking for a reason to fire you, your computer records could provide easy ammunition.

10. Your good and bad behavior matter—but the bad matters more.
“Promotions have favoritism built in,” says Hladio. Good behavior and positive experiences have a “shelf life” of three to six months. You need to continually impress your employer in order to stand out as an exceptional employee. Bad behavior and negative experiences, on the other hand, can linger in an employer’s mind for years.

Original article appeared on WomansDay.com

Exciting Changes for Assistant Services & Associates

Hi, Everyone.

For a lot of you who don’t know and are just now tuning in, Assistant Services & Associates has been making a lot of new and exciting changes both the website and to the overall business operation.  These changes are exciting because they are attracting more prospective clients which have lead to meeting, networking, and working with some great businesses.

Because some inquiries are international, my hope is to further expand in its global relationships in being able to offer services that can be beneficial to international clients who find the services much needed.

Here’s what else is going on:

Adding & Updating Services:  One of the most exciting things this year has been the ability to add new services to the current list of services already offered.  This has proved to be a win-win for both myself and for the client.  It’s an opportunity to taylor services to meet specific needs on specific parameters, and being flexible to the point to where the client walks away very much satisfied is important.

A mailing service has been added to offer to clients who have a mailing project but do not have in-house staff to facilitate the project and oversee it’s completion.  Too, the Research services has been added back into the list of services offering internet research.

Pricing:  The pricing structure has been slightly adjusted to better explain how the rates are offered.  Removing the flat fee rate from the rate structure was necessary as it was not meeting the dynamics of how the services were offered, delivered, and proved to be too problematic at the end of some projects in terms of how they were invoiced.  Keeping the rate structure at the Standard Hourly Rate and offering three levels of Retainer Plans seems to work better and are easily explanable to interested prospects.

Advertising:  Assistant Services & Associates is now offering advertising opportunities.  While this is new, this service is still in beta format to see how well it will do.  For information on what’s available in advertising, you can visit the Advertisements section of the website.

Resource Guide:  The 3rd Edition of “Outsourcing:  The Guide to What You Should Know Before Choosing to Outsource” is a guide for anyone who is unfamiliar with how the concept of outsourcing (or contracting out) is applied to the day-to-day business processes and is either interested in outsourcing various functions of their business, or they are looking to be refreshed in the do’s and don’ts of outsourcing.

The Guide provides helpful information in how the decision process is and should be handled, and offers information on when outsourcing can be too much for one business (when outsourcing is too much), and can at some point disrupt the flow of business.

Outsourcing can be a cost effective method but should be approached cautiously and with an understanding of what and who is to be involved.

This is a helpful resource guide and is probably what most outsourcing vendors do not want you to know about.  Assistant Services & Associates is doing its part to bring back quality outsourcing to the business community where business professional are deserving of quality services.

The Guide can be purchased for $35 plus $3.95 for shipping per copy.  Send checks or money orders to, and payable to:

Assistant Services & Associates
PO Box 191984
Los Angeles, CA  90019

If you are ordering more than five copies, please email Assistant Services & Associates for shipping rates.

Going Forward:  As we get ready to enter a new year, I am appreciative to those whom I’ve had the pleasure of meeting and working with this year.  I hope to bring new services and work with new clients, building strong business relationships in 2011.

Having said that, I invite you to visit the website.  Browse around and if there are services you feel can assist your business in its daily processes, whether on a long- or short-term basis, feel free to email me at officeservices@asstservices.com.

Stay blessed…

15 Times When You Shouldn’t Use Your Credit Card

By Marcia Frellick

Tuesday, October 5, 2010
Article provided by

There are plenty of reasons to use a credit card — convenience, accountability and safety among them — but when is it better just to step away from the swiper?

There are many out there who would say that there’s never a good time to use a credit card, and that cash, debit or anything else would be a better choice. While forgoing credit for good may or may not be realistic, there are some times when it is best to just leave the card in your wallet or purse. Here are some times when you should never use your card:

1. After midnight. Paraphrasing Eric Clapton, after midnight tends to be when people let it all hang out — even financially. “After midnight is the time you get into more trouble rather than making a sound financial decision. If you’re at a club or casino, just go home,” says Michael McAuliffe, president of Family Credit Management in Chicago. Put the card away and take another look in the morning.

2. When you’re near your credit limit. “You don’t want to be even within a couple hundred of your limit or your credit score will go down,” says Mary Ellen Nicol, counselor with CredAbility in Atlanta. If you’re getting too close to your credit limit, ask your credit card company to raise your limit, switch to a card with a lower balance or find another way to pay.

3. When considering an extended warranty at the car dealership. You can probably get a better deal if you roll the warranty cost into the car loan. Even though you may have a slightly higher monthly car payment that way, wrapping it into a secured loan likely still beats paying high interest for it on your credit card, says David Johnson, bankruptcy counseling director at ClearPoint Credit Counseling Solutions in Los Angeles.

4. If you get a notice that your rate will go up: “That’s basically a notice that you should stop using your card,” says Lauren Bowne, a staff attorney with Consumers Union. Although the Credit CARD Act of 2009 says that credit card companies have to give you 45 days’ notice before your rate goes up, there’s a quirk in the law. The new rate actually applies to purchases starting on the 14th day after you get the notice. This is the time to negotiate with your credit card company to plead for the old rate, switch to a different company with a lower interest rate or put yourself on a credit fast.

5. If you’re paying off one card with another, and it’s a habit: “If you’re swapping your debt every six months, that’s going to show up on your credit report,” Bowne says. If it’s a one-time thing, consider whether the offer is too good to be true. “Transfer fees have gone up at least a percent on average in the last year,” Bowne says. “We’re talking about 4 percent of your debt you’re going to pay up front just to transfer the debt.” Be clear on the rate you will pay after the promotional rate ends. It could be higher than the rate you’re trying to escape from, she warns.

6. At a flea market: “It used to be that you always had to have a wad of cash. Now, through the magic of technology, some guy selling rickety, old wagon wheels can take your credit card,” Williams says. This is the kind of purchase where convenience doesn’t outweigh the risk, she says. Bring the cash.

7. If you think you’re building your credit history: David Beddoe, counselor with American Financial Solutions in Seattle, says he hears that a lot. While your credit score goes up if you pay off the purchases you make, putting items on a credit card without paying them off will have the opposite effect on your score, he says.

8. If you can’t pay for half of the purchase with cash on hand: Say you need new tires, Nicol says. If you don’t have half the money right now to pay for the repairs, wait until you do. Then charge the purchase, pay off half right away and make a plan to pay the rest in one to two months. In the case of tires, you probably knew you needed them months ago and that would have been the time to plan ahead for the expense, she says. Check out public transportation or reduce your driving and save until you can afford at least half.

9. When it’s all about the rewards points: Rewards points “should be nowhere in the equation for making that decision or not making it,” says Michael McAuliffe, president of Family Credit Management in Chicago. “Base your decision on the merits of the purchase.” Otherwise, you will tend to overspend. If you want to finance a vacation, skip the coffee or dessert or find cheaper parking and put away $5 a day for a year, he says.

10. When you think prices may drop: “For many things in our society, we’re starting to see deflation. If you think it’s going to cost less in three months, why start paying interest on it today?” McAuliffe says.

11. To buy something from a website with an obscure foreign extension: Don’t charge online if you don’t know who you are dealing with, says Catherine Williams, vice president of financial literacy for Money Management International. “While you always have protection under the Fair Credit Billing Act, the damage that can be done during that 30 days (until you see it on your bill) is just crazy.” Study the website — watch for suspicious wording — to make sure it is legitimate.

12. If you don’t have a plan for paying it off: “We always recommend paying a purchase off in no more than three months. Without a game plan, you’re playing credit card roulette. That’s when people get into trouble,” says Kathy Virgallito, a regional director for Apprisen Financial advocates.

13. If you’re charging things that you used to pay cash for: That’s a red flag that you’re getting overextended, Virgallito says. You need to review your credit card statements and identify where the budget issues are. If you’re suddenly having more car repairs or travel expenses to visit a sick relative, you may need to create a specific savings account for those things rather than relying on credit, she says.

14. When you feel that you’ll save money by purchasing something you want rather than need. Beddoe gives the example of someone saying, “If I buy this 60-inch TV right now, I can save $200 on it.” If you never planned to get that TV in the first place, it’s hardly a savings, says Beddoe.

15. When the temptation for a big impulse buy strikes: “We instituted the 24-hour rule at our house,” Williams says. “Anything over a certain dollar amount that isn’t food, we have to wait 24 hours to buy. Had we not observed that …I would have a fire engine red wicker chair. It would have been so cute on the Fourth of July for about 20 minutes.”

Article found at Yahoo! Finance.

The 3-Day Hold Policy in Full Effect

Next time you go to make a check deposit at your financial institution, don’t get mad at the representative who politely tells you, after agreeing to make the deposit into your account, “I’m sorry, but we have to put a 3-day hold on your check deposit.”  They’re not being mean, or trying to upset the rest of your day.  They are simply working to enforce recently heightened policies in the fight against fraud.

I spoke with a representative at LA Health Care Federal Credit Union who stated when I had gone to make a large check deposit, “we had to change our policies because we’ve been hit with a lot of fraud.”  She gave me other alternatives to having full access to the cash, but that would have meant going to pay check cashing fees which I really did not want to have to do.  Getting annoyed really wasn’t the right way to handle the situation, it wasn’t like I needed the cash to go out on a major shopping spree.  After all I had to look at it as them as working to secure the privacy and protection of my accounts.

The 3-day check hold is not a new policy. In fact it’s been around for decades.  It used to be that you could sweet talk a representative who knew you and knew you had good standing accounts, and the hold could get released with no problems.  Or if there was an error on the banks end  that was proven, as a courtesy to the customer (and as an apologetic effort), they would release the hold to avoid any bad blood between them and their valued customer.

Today are there is an increased number of financial scams that thousands of consumers have  gotten caught in, schemes promising financial freedom, which were simply fraudulent attempts to steal from  you and the financial institutions.  They usually involve Western Union transactions where you a check or cashier check from resource, and you cash it and keep a percentage, forwarding the rest to another resource via Western Union.  There are documented cases where lawsuits have been filed and money collected to cover the loss.  Although, the individuals who were caught in the bogus financial scheme never regain what they’ve loss and find themselves repaying the financial institutions for the cost of recovering what they lost.

If a 3-day hold is place on your check deposit, it’s simply an opportunity for your financial institution to contact you in case there’s a problem with your deposit, you have an opportunity to fix it before things become worse than just receiving a phone call.

Detecting a bogus payment instruments is simple and requires very little effort.  Cashier checks have watermark features and are cut with specific measurements.  If you receive a cashier check and the cut is wrong, the paper is too thin and flimsy, and there is no present watermark or where to sign or that specific information that is usually on a bank drawn cashier check, call the bank right away to verify your suspicions.  In most cases you will be asked to turn over all information you have pertaining to that document.

In today’s unstable economy, consumers can’t be too careful when keeping an eye on the bottom line of every dollar they work hard to earn.  Safeguarding incomes comes with no limitations, so it shouldn’t be any surprise that banks and credit unions are changing or have changed their policies for the benefit of protecting their customers.  They are continuing to take one more step  towards winning the war against fraud.

American Express Cancels Accounts

Before recent credit card regulations were put into place, credit card holders were discovering that their credit card companies were cancelling their account, some without out warning. 

American Express is one such company who has recently become known for cancelling their card members mostly for carrying too high balances, their inability to pay on time and in full, and poor payment history over time – depending on the type of card they had.  In addition to being cancelled, customers are still on the hook for whatever remaining balance on the account at the time of the cancellation.

Case in point:  Belinda had paid her Amex card account at a local payment Amex center in West Hollywood.  The payment was posted immediately.  A few days, and after verifying the payment has posted, she went to the grocery market.  Her bill totale just over $100 (she paid $275 on her Amex account).  When she swiped her card the purchase was declined.  Thinking it was an error, she had the checker swipe it again, then enter it manually — still the purchase was declined.  An immediate call to their customer service line revealled that her account had been closed.  She had not received any written correspondence prior to her making the payment that was in jeopardy of losing her account that she had relied on for so many years.  Even after she had verified the payment, there was no indication that her account was closing.  The customer service rep she spoke to was adamant in their decision stating she’s a high-risk customer who has had too many problems with making payments on her account.

This is just one way American Express and other credit card companies are targeting card holders that fall into this “high-risk” factor due to a poor payment history regardless if they’ve made the payment.  The rise in credit card delinquencies can push the charge-off rate sky high. 

In 2009 American Express offered customers a $300 incentive to  customers to close their account.  Even customers with a stellar payment history, who enrolled to receive the incentive in the form of a prepaid card, would automatically have their account closed.  The offer is also a stark contrast to previous incentives, like frequent flyer miles and cash-back deals, offered by card issuers to encourage consumers to open an account.

The problem with the incentive deal is that customers who have struggled to keep their account current did not have the opportunity to receive the incentive.  To be valid to receive the prepaid card, only those customers who received a mailing with a registration code from the company and was advertised as a way for people to “simplify your finances.”  It wasn’t immediately clear what kind of balances the company is targeting with the deal or how many people will receive the offer.  Which was the very point I was making.  Not everyone received such a mailing advertising the offer.  Some were just cancelled without warning.  And the company also warned consumers may lose rewards points by enrolling in the offer.

With the unemployment rate seeming to still be on the rise, and the workforce still slow to recover, credit cards will continue to take a hit unless cardholders can find ways to maintain some sort of income that will keep from destroying their credit rating.

American Express remains the hardest credit card on the market to date to obtain.  Frankly, I would never want to be a cardholder.

The Darker Side of Payday Loans

Everyone gets into a tight financial bind at one time or another.  The question is what they do to solve the problem.  Payday loans have been popping up all over the place offering — what they call — affordable percentage rates.  The bottom line is depending on where you go, you are paying $35 to $60, if not more, in fees alone per roll over of the loan.  Though it is stated that the percentage rate cannot be more than 36%, you still end up paying 500% – 700% a year in annual percentage rates.

Who applies for payday loans?  The typical customer may be someone who is short on cash, living on limited funds, or may have an unexpected expense.  Payday loans can range from $75 to as high as $5,000, and the means to repay these loans must be immediately available otherwise you run into a whole new set of problems.  

Payday lenders target:

• younger consumers with limited understanding of finances
• consumers who are deeply in debt
• consumers who are struggling to meet their day-to-day financial obligations
• those who have a history of using high-risk lenders

This includes elderly men and women who are living on limited means.

Why avoid payday loans?  In an article I recently read on About.com in the Financial Planning section, it quoted “payday loans are the beginning of a vicious and very expensive cycle that they find difficult if not impossible to get out of.”  This is true in every case being.  The lenders of these payday loans, also known as “check advance loans,” “postdated check loans,” or “deferred-deposit check loans,” make them attractive, appearing to be the best solution to being without cash for a short period of time, or until your next payday, yet they do not tell you that once you are unable to pay they become your worse nightmare.  Read on.

Assistant Services & Associates spoke to a manager of a check cashing chain in 2005 where they specialize in all areas of check cashing including payday loans.  When asked what she felt about payday loans and how the company she worked for handled them she reluctantly stated, “I feel sorry for some of the customers who come in and apply for a payday loan.”  She went on to say, “for some, payday loans is their only alternative, for others it’s because they don’t know how to manage their money and are just irresponsible.”  She was asked if she would ever get or rely on a payday loan to solve whatever financial emergency she faced and she was quick to say “No! Payday loans aren’t for me.”  She concluded. 

Another individual was queried in a phone conversation, and she stated, “I’d rather take my chances being in the poor house before I go the route of a payday loan.” 

What fees are associated with payday loans?  To get a clear understanding of how payday loans work and the fees associated with them, here’s an example:  Robin was $200 short of having enough money to pay her bills, so she borrowed it from a payday lender who charged her $60 for up to 15 days.  Her plan was to repay the money when she received her next paycheck in two weeks.  When the time came, she still didn’t have enough money to pay off the amount she borrowed plus the $60 fee, so she paid an additional $60 fee and rolled her payday loan over for another two weeks.  The cycle continued, and at the end of six months she had paid $720 in fees and still owed the original $200.  Her hopes of getting out from under this black cloud are slim.

At ACE Check Cashing, on a $230 loan, you will end up paying $427.80 in fees and will still owe the original amount of the loan.  At Payday Express, on a $300 loan you will be paying $600 just in fees, and will still owe the original amount of the loan.  200cash.com will advance you $200 for up to 15 days for a fee of $60. You can get up to four 15-day extensions for $60 each (for a total of $240 in fees).  If the fees cause you to have insufficient funds in your bank account, you’ll be charged a $25 returned check fee by the company in addition to your bank’s returned check fee.  Does it sound like it’s really worth the hassle?

The amount of money you pay in fees per year can be put towards something more useful like a vacation, school supplies for the kids, household needs, other bills.  But, as in the example, there are many who fall short on cash for some reason or another, hence as to why payday loans were started to begin with.

Payday loans are deceptive.  They don’t tell you the bottom line.  They lure you in with promises to help solve your immediate cash emergency.  And since you’re forced to turn over a postdated check, you may be harassed, threatened, or subjected to collection practices. The payday lender may deposit the check before the date you agreed on, causing your check to bounce and forcing you to pay more fees. Because people who use payday lenders are usually in desperate financial situations already, they may have trouble repaying the original loan and they continue to extend it until they’ve paid more in fees than the amount of their original loan.

The high rates of payday loans make it difficult for many borrowers to repay the loan because they are already in a desperate financial state. They keep extending the loan and end up paying more in fees than they originally borrowed, putting them in worse financial shape than when they started.

Can I prevent financial emergencies?  You can prevent facing financial difficulties and emergencies by taking a close look at your income and expenses.  Track where your money goes and find ways to save.  Saving only takes small amounts in a number of different areas to add up to enough to build a small savings account that you can turn to in a bind instead of turning to high-rate lenders like payday loan companies.

Read your bank and credit card statements regularly.  Be sure to keep your credit card payments current to avoid additional fees.  Make sure any household bills you’re paying such as utilities are paid on time to avoid being 1-2 months behind.  This can add up and ultimately create unnecessary problems.

Budgeting101 provides easy-to-read articles about getting motivated in establishing a budget.  They also provides simple steps for setting up a budget, sample budget worksheets, ideas for finding ways to cut costs and save money, and more.