There has been an increased growth in the use of general purpose reloadable prepaid cards and this has been attributed to by the fact that these cards can be used to make purchases conveniently. They can also be used to withdraw money from ATMs and also the card holders can pay their bills using these cards. You can buy the cards online or from a store.
With these cards, you can add cash whenever you want and use that money in buying from retail stores or withdraw it from automated teller machines. The prepaid debit cards serve as bank debit cards but without a checking account.
You do not need to have a checking account with a bank in order to enjoy the services offered by these cards though some prepaid cards today offer online bill pay and also savings accounts. In 2009, American consumers loaded closed to $28.6 billion on to their prepaid cards and this is according to Mercator Advisory Group.
This is pretty a large amount of money and signifies the scale of use of these cards, which otherwise have been criticized by many consumer groups for holding hidden fees for their customers. It is even expected that the consumers using prepaid cards will load an estimated $200 by the end of 2013. This shows that the use of these cards will continue to rise.
From a research conducted by Pew Charitable Trusts, it has revealed interesting aspects about the use of prepaid debit cards. The Pew researchers has revealed that prepaid cards have many service fees imposed and they range from somewhere between 7 to 15 different fees. The most common of these fees are monthly maintenance fees, card acquisition or activation fee, ATM withdrawal and customer service calls.
Though these fees seem small amounts, they can add up to huge sums of money in the long run. According to the Pew research, most consumers use prepaid cards as a way of keeping their spending minimal. The fact that many of these cards do not offer overdraft services means that consumers only have to spend what is in their card.
They are also not covered by the laws that limit consumer liability for unauthorized electronic money transfers and this puts the card holders into money risks. However, despite these risks posed by the cards, they can be essential financial tools for a particular group of people. They can be a good option for those people who do not want a bank account or are limited by some other aspect to get a bank account.
The cards are also useful for parents who would like to give their kids money without giving hard cash or accessing their bank accounts. If you take overdraft facilities frequently, you are also in a better position to gain positively by using these cards since they will make you manage your spending.
They will also avert you the small but recurring fees that you have to pay every time you take an overdraft. However, if you do not pay overdraft fees then your checking account could still be much better than a prepaid card.
A dream vacation does not have to cost an arm and a leg for a family. All that is required is a little bit of advanced planning and it is possible to be able to have a great vacation that is actually economical. By using a mileage reward card it is possible to get great flights to amazing destinations for either a lowered price, or even for free. Many companies offer mileage reward cards, but some are better than others. Capital One offers one of the best mileage cards with their Venture One Rewards Credit Card. They offer 1.25 miles per purchases, and they give a bonus of ten thousand miles after using one thousand dollars within the first three months. Once all of the points are accumulated on the card you can redeem the points for airline tickets, hotels, and also for car rentals. Bank of America also has a great travel rewards card. They offer 1.5 points for every 1 dollar purchase. They also offer 0% APR for the first year and you can use their credit card for all travel including flights, rental cars, and cruises.
Most travel rewards cards work in a similar manner. Once you have used the card for purchases then you have the option of using the points that you earn with the purchases for whatever you would like. Airlines work with the companies to convert your points into mileage.
To find out how many miles you would need, it is important to call the credit card company. For example if you were traveling from the UK to New York about 35,000 miles are needed for an economy flight. You would need to have accumulated at least that many points to be able to get that airline ticket for free. Apart from accumulating the points on your own, there are times when airlines or even the credit card company will offer great deals and you can get extra miles by making certain purchases, making it even easier to get the miles you need to travel.
Taking a vacation is always something that is great, but there is really nothing that could be better than getting a great vacation with a free flight. Quite often people take vacations to beautiful places and the most expensive thing is usually the flight, so if it is possible to get a free flight that would be a huge discount for any dream vacation. In reality using mileage programs to pay for flights is the best thing to do for anyone that travels. All that you are doing is using your mileage card to pay for things you would have bought anyway, but the advantages of using the cards are excellent.
Most people can qualify for a mileage card, so it is really worth it to try to get a good mileage card, because you could be saving yourself thousands of dollars on your next dream vacation. At first look, few cents of savings on something is not that big, but if you make a lot of these small purchases, you will save a significant amount of money.
Companies can borrow money from other legal or natural persons, and can itself provide financial loans. Borrowing money from legal entities that are not bank or other financial institutions, and between natural and legal persons is subject to the loan agreement, which is governed by the Law on Obligations. The parties are legally designated as a lender and borrower. Any legal or natural person can be a lender, as opposed to the loan agreement where the creditor can only be a bank.
Unlike the loan agreement (approved by banks and other financial institutions), with the loan agreement, interest is or may not be contracted, except for trade agreements where the borrower owes interest, even though it was not contracted (art. 500 of the Obligations Act ).
Loans between companies
Cash loan can be arranged without interest or with particular interest. The tax treatment of such transactions depends primarily on the tax status of the person of the borrower and the lender and on whether they are residents or non-residents of the country.
Loans between company’s residents
If one of the related persons has a privileged tax status and is taxed according to tax rates that are lower than the prescribed rates (based on the use of certain tax breaks), the person has the right to transfer tax losses from previous tax periods. Discount rate and the amount of 7% per annul applies for 2012 and onward – until the announcement of the new rates.
Loans between company’s residents and non-residents
Company’s residents and non-residents who are unrelated persons, apply market interest rates, while company’s residents and non-residents who are considered as related persons apply discount rate. Credit services are not subject to VAT- thus it is not required to pay VAT as compensation for the service of financing on the agreed interest.
Is it profitable to give the worker a loan? Loan agreement between the employer and employee must be arranged at minimum interest of 3% per annul. More favorable interest rates, when loans are lower than 3%, are the convenience of the employer and the difference between the contracted rate and lower interest rates of 3% per annul is represented in salary.
Is it profitable to give the worker a loan?
Loan agreement between the employer and employee must be arranged at minimum interest of 3% per annul. More favorable interest rates, when loans are lower than 3%, are the convenience of the employer and the difference between the contracted rate and lower interest rates of 3% per annul is represented in salary.
Loans to owners of the Company
The Company may grant a financial loan to individuals who are not their employees, but not the owners of shares in that company. In doing so, it is necessary to take few things into account before approving the loan: the provisions relating to credit of the employee; the minimum interest rate is 3% per annul; if a member of the company (the owner) is not an employee in your company, then a loan can be approved; interest-free or an interest rate lower than 3% is considered as hidden profit payment (withdrawals of assets and the use of services by members of companies for private purposes.
The Company may enter into a loan agreement with persons – owners of companies or citizens who are not connected with the company owner. Natural persons (citizens) cannot lend any money to enterprises.
Payday lenders are working outside of the law, and no regulation covers their business. That said, I can continue talking about payday loans, things you will not read in their advertisements.
Some jurisdictions try to limit APR ( annual percentage rate ) of these lenders, but lack of regulation makes it impossible to track every lender there is. That is why other jurisdictions go a step further and outlaw this type of lending, but as long as there are people desperate enough to ask for this kind of loan, there will be a lender available. Some USA jurisdictions tried to limit APR of short term lenders to around 40 percent, but that was proven unsuccessful. For example, a payday lender will borrow you 100 dollars on 14 days, and when that comes you will have to pay back 115 dollars, which makes the interest rate over 400 percent. Many thought that payday lending will not prosper as much is it did due to high risk that lender has. But risk to lender is rather small, taking into consideration how many loans he gives and how much of the interest he gets back.
Basic process of payday lending is simple. Lenders gives the borrower money and the borrower has to pay it back in a period agreed between them ( originally it was on next payday ) with interest they also agreed. Some lenders will ask for verification of some kind of income borrower has, but that is not standardized process for many lenders will not ask any information, but basic personal data so they know hot to contact you.
A lot of changed in payday lending business with introduction of online financing. Before online financing postdated cheques were written on the day of taking a loan, and they would become valid on next payday of the borrower. But ,now a lot of payday lending is done online with online lenders. In this case borrower completes an application to get loan online or via fax. After this he receives his loan over direct deposit to the bank account he provided.
Repayment is automatically withdrawn from that same account on the date that is specified ( payday or different date depending on the date specified in the application ). I will avoid going deeper into onli9ne lending and practices and frauds that are present there. That topic deserves its own article or two and I will not try to squeeze it in here.
Whenever you see an advert of payday loan, you will notice that the face of that advertisement is a young female ( between 24 and 44 years old ) and it will say that their loan is a good way to pay off unexpected things. But in reality only those that are not able to take a bank loan ( those that earn less than 40 000 dollars a year ) will take this kind of loan, and they will do that to pay everyday expenses. Important thing to note is that in general those that take these loans end up taking them at least 5 times in a year.