EP:58 The Pre-Paid Pick Pocket

Pre-Paid Gift Cards

Pre-Paid Cards P.O.P.

During the holiday season is by far the time when pre-paid cards and gift cards are given out the most all year long.  Pre-paid Cards and Gift Cards are an easy one shot, quick trick, when  it’s hard to think of something as a gift.  It’s easy to stop in a local Wal-Mart, Walgreen’s and now even the local Dollar Tree and grab one of these pre-paid cards or gift cards on the go.

Convenience comes at a cost, and sometimes it’s a very high cost.  There are too many alternatives to list when it comes to pre-paid cards and gift cards. What’s really crazy is that among the alternatives …buying stock in the very company that sells the pre-paid cards and gifts cards may be the best alternative of all.  A quick look at the stock price of company that sells and markets the Green Dot (NYSE:DOT) card at the local Dollar Tree (NASDAQ:DLTR) reveals the  stock is up around 45% year to date for 2016! With that sort of return on investment, it would be better to give the company stock as a gift instead of the actual pre-paid card. Dang!


Sucker Free Money

Don’t Be a Sucker, Don’t Pay Into Usury. Be Sucker Free.

Stay Sucker Free.
Stay Sucker Free.

Usury is the practice of having or charging notoriously high interest, costs and fees attached to borrowing money.  Federal and local governments try to protect consumers from the worst of the worst when it comes to such practices, but it’s usually after whatever company has already made a really good run and ripped off many people along the way.  In the most conspicuous ways it can be seen in credit card rates, car loan rates, housing loan rates, (sure you’ve heard enough about the housing crisis to feel like an expert on the subject) and short term loans.  Short term loans and fast cash payday loans probably being the most economically damaging of the bunch.  Still, there’s the hidden usurious tactics, yes hidden, such as the 22% fee on money transfers and so on.  Then there’s interest and fees on money that already belongs to you, instead of gaining or receiving interest, secondary financial companies are charging you for your own money.  I know, crAzy RiGht? What kind of Sucker pays to get his or her own money.  Be “Sucker Free”, don’t work for your money and then pay for your own money.


Stop Borrowing -Start Lending

Stop Borrowing -Start Lending

Are You Lending Money, but You’re Not a Bank?

Bankless money lending

Many of us have worked quite hard to elevate our financial profile to the position where we are readily able to take good care, buy most things that move us and reach most relative goals (most).  Many of us can at the very least figure out how we can attain what we want, when and even how.   While not being rich by any definition of the word, we still do pretty ok, so we say.   Here’s what not news, others notice this financial confidence and ability to manage most financial lifestyle events.  They notice you not only buying some things, participating in certain activities, but also maintaining the relative lifestyle and keeping up.  Some folk notice this so much that they may even do what I call bookmark you as a financial “go to” in case things get sticky.  Where they keep you in mind just in case their irresponsible ways of handling money catches up with them, just in case they aren’t able to pay their bills, need money right away to carry them over or even to help get themselves going in their own small business.

They'll borrow, lend, loan, let me hold... you to death.
They’ll borrow, lend, loan, let me hold… you to death.

Problem is, you’re not a bank regardless if they treat you like one.  You probably didn’t tell some of the most financially irresponsible people in the circle of family and friends “hey, if you run low on cash call me”.  But they do anyway, sometimes they pay you back, sometimes they don’t and others times they want to pay you like your Master Card or Visa, paying $10. then $5. then $15.  Like really, is this how I’m gonna get my $150. back???

Other than just making loans that may never get paid back with a guaranteed 0% interest, there’s the new thing “funding” on sites like Go Fund Me and others for all sorts of hair brain ideas.  There’s been a new market built around the short on cash overspending crowd, PayDay Loans, but at the very least they fight to get their money back and balance the risk between borrowers.

Don't be Big Worm, don't chase folks for your money
Don’t be Big Worm, don’t chase folks for your money

So if you must lend money because it’s nice to be nice, you can make some money too because that’s even nicer!  It won’t take becoming a Pay Day Lender and killing people financially, although peer lending is the original Pay Day Lending platform.  However, you can lend money to individuals that are willing to pay back with interest, something like operating your own bank or credit card company.  Of course, there are middle man sites that set this up, but either way, you can get in on the lending for a profit.  The middle man sites work in your favor by qualifying lenders, getting profiles, rating borrowers, giving worthwhile  insight and directions on lending rates to offer, setting up terms and other resources that will make remote personal lending simple and easy.

Some of the most popular sites for personal lending, officially called “peer-to-peer” or peer lending are https://www.prosper.com  and https://www.lendingclub.com .  There are several others of course and you can search them using “peer lending” in the search bar.

So this may your chance to move from friends and family network lender that never gets paid back to start lending and running your own little bank thing online.