Arizona payday loans – Arizona Heli http://arizonaheli.com/ Tue, 21 Jun 2022 17:48:16 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://arizonaheli.com/wp-content/uploads/2021/05/cropped-icon-32x32.png Arizona payday loans – Arizona Heli http://arizonaheli.com/ 32 32 Why McCarthy Law PLC in Scottsdale, AZ is expanding its partnership https://arizonaheli.com/why-mccarthy-law-plc-in-scottsdale-az-is-expanding-its-partnership/ Tue, 21 Jun 2022 17:48:16 +0000 https://arizonaheli.com/why-mccarthy-law-plc-in-scottsdale-az-is-expanding-its-partnership/ Scottsdale, AZ: The road to debt relief can be long and frustrating, which is why McCarthy Law PLC is ready to help clients achieve successful debt settlement much sooner to unlock a brighter future. Accredited firm BBB McCarthy Law PLC is fighting for the little guy by erasing debt and restoring credit. Debt settlement attorneys […]]]>

Scottsdale, AZ: The road to debt relief can be long and frustrating, which is why McCarthy Law PLC is ready to help clients achieve successful debt settlement much sooner to unlock a brighter future. Accredited firm BBB McCarthy Law PLC is fighting for the little guy by erasing debt and restoring credit. Debt settlement attorneys can help clients settle their debts for a fraction of the amount owed, avoid bankruptcy (chapters 7, 13 and more), and ensure they move on with their lives undisturbed by the burden debt. The firm has added attorney Jacob Hippensteel to its growing number of partners.

McCarthy Law PLC has defended numerous clients involved in credit card lawsuits and ensured the protection of their interests. Other areas of interest include resolving credit report errors and employment law issues. Lawyers can correct credit report errors free of charge and protect clients involved in labor disputes. The general counsel and contact person for the firm is Kevin McCarthy.

As solicitor Jacob Hippensteel joins McCarthy Law PLC as a partner, he will retain his designation of Director of Litigation, which involves overseeing litigation. He will also continue to serve the firm’s executive group by providing legal counsel and advice on business matters. Prior to the new appointment, Attorney Jacob served as an associate attorney for six years. While working as a lawyer, he represented clients at various levels of litigation, including Court of Appeals, jury trials and court hearings. During his tenure at McCarthy Law PLC, attorney Jacob earned much acclaim and respect.

Lawyer Jacob received an engraved Breitling Superocean Heritage watch as a token of appreciation upon his induction as a partner. While joining the elite team of debt settlement lawyers, Jacob successfully represented many clients struggling with debts, credit report errors and wrongful dismissals getting a reprieve from the halls of justice. . The attorney is a dedicated member of the National Association for Consumer Advocates and has been on the Southwest Super Lawyer Rising Star list since 2019. He is licensed to practice law in Arizona and several U.S. district courts. With this new partnership, the firm is pleased to take the team sport approach to pursuing justice.

McCarthy Law PLC’s debt settlement process is simple and straightforward. Clients can start the process by requesting a no-obligation phone consultation, speaking with the lawyer about their current situation and discussing practical options. The firm also helps clients resolve issues regarding student loans, mortgage debt, unfair debt collections, SBA loans, credit repair, and payday loans.

To speak to the experienced attorneys at McCarthy Law PLC, call 866-777-0748. The law office is located at 4250 N Drinkwater Blvd Suite #320, Scottsdale, AZ, 85251. Live chat service is also available.

Media Contact

Company Name
McCarthy Law PLC
Contact Name
Kevin McCarthy
Call
866-777-0748
Address
4250 N Drinkwater Blvd Suite #320
Town
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State
A-Z
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Website
https://mccarthylawyer.com/

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FTC Shares 2021 Enforcement Report with CFPB https://arizonaheli.com/ftc-shares-2021-enforcement-report-with-cfpb/ Fri, 10 Jun 2022 15:56:15 +0000 https://arizonaheli.com/ftc-shares-2021-enforcement-report-with-cfpb/ On June 3, the FTC announced that it was submitting its 2021 Annual Financial Law Enforcement Report to the CFPB. The report covers the FTC’s enforcement activities regarding the Truth in Lending Act (TILA), the Consumer Leasing Act (CLA), and the Electronic Fund Transfer Act (EFTA). Highlights of law enforcement issues covered in the report […]]]>

On June 3, the FTC announced that it was submitting its 2021 Annual Financial Law Enforcement Report to the CFPB. The report covers the FTC’s enforcement activities regarding the Truth in Lending Act (TILA), the Consumer Leasing Act (CLA), and the Electronic Fund Transfer Act (EFTA). Highlights of law enforcement issues covered in the report include, among others:

  • Car credit and leasing. The report discussed the FTC’s July 2021 settlement with car dealership owners in Arizona and New Mexico (collectively, the “Defendants”) resolving allegations that the Defendants misrepresented consumer information about claims for funding and misrepresented financial terms in advertisements in violation of TILA and CLA (covered by InfoBytes here).
  • payday loan. The report highlighted the FTC’s settlement against a payday loan company for allegedly overcharging consumers millions of dollars, misleading them about the terms of their loans and failing to make required loan disclosures. According to the report, the owners and operators of the settlement entities are prohibited from extending loans or extending credits, almost all debts held by the company will be deemed paid in full and the companies concerned are being liquidated. , the proceeds to be used to provide redress to consumers harmed by the business.
  • Credit Repair and Debt Relief. The report discussed the FTC settlement with operators of a student loan debt relief program, who were accused of falsely promising consumers that the company could reduce or eliminate student loan balances. , illegally charging up-front fees for credit repair services and signing up consumers for high loans. interest loans to pay fees without making required loan disclosures in violation of TILA. The order prohibits the defendants from providing debt relief services and collecting any other payment from consumers who purchased the services, and requires the defendants to return the money to be used to repay consumers.

In addition, the report discussed the FTC’s research and policy efforts and highlighted the work of the FTC’s Military Task Force on military consumer protection issues.

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New Laws, Lenders Improve Access to Affordable Small Loans | Smart Change: Personal Finances https://arizonaheli.com/new-laws-lenders-improve-access-to-affordable-small-loans-smart-change-personal-finances/ Tue, 24 May 2022 07:00:00 +0000 https://arizonaheli.com/new-laws-lenders-improve-access-to-affordable-small-loans-smart-change-personal-finances/ Annie Millerbernd Inflation has particularly affected people who are already struggling to fit gas in their tanks and groceries in their refrigerators. For many, a payday loan may seem like the only way to get the money needed. In recent years, however, as more states impose restrictions on risky short-term lending, new lenders have emerged […]]]>

Annie Millerbernd

Inflation has particularly affected people who are already struggling to fit gas in their tanks and groceries in their refrigerators. For many, a payday loan may seem like the only way to get the money needed.

In recent years, however, as more states impose restrictions on risky short-term lending, new lenders have emerged offering small, lower-cost loans, making it easier than ever before to find an affordable loan that won’t drag you into unmanageable debt. .

In some states, new laws mean better loans

There is currently no federal law for maximum interest rates on small dollar loans; rather, states decide whether or not to cap payday loan rates. Therefore, the cost to borrow a few hundred dollars often depends on where you live.

People also read…

In recent years, four states — Colorado, Hawaii, Ohio and Virginia — have passed laws that effectively reduce the cost of small loans and give borrowers longer repayment terms. A study by The Pew Charitable Trusts published in April found that even under the reforms, payday lenders were still operating, but with more secure loans.

Although some new lenders began doing business in these states once the laws took effect, the main impact was that existing payday lenders consolidated their storefronts and made their loans more affordable, says Alex Horowitz, director of research at Pew.

National banks and local credit unions step in

A bank or credit union may not have been your go-to for a small loan in the past, but it could be today.

Seven major banks have started offering or announced plans to offer small-dollar borrowing options with low annual percentage rates in recent years, Horowitz said, including Bank of America, Wells Fargo and Truist. These loans are available to existing bank customers nationwide, regardless of state interest rate limits.

Banks primarily rely on customers’ bank history rather than their credit scores to determine if they qualify for a small loan. The loans – which start from $100 – are usually repaid in monthly installments at annual interest rates no higher than 36%, the maximum rate an affordable loan can have, according to consumer advocates.

“The fact that banks start offering small loans could disrupt the whole payday loan market,” says Horowitz.

Local credit unions have membership requirements and maintain lower profiles than payday lenders, so they’re often overlooked by people who need cash fast, says Paul Dionne, director of research at Filene, a think tank that aims to help credit unions serve their communities.

But if you can walk to your local credit union, chances are you’ll qualify for membership, he says.

This is because credit unions often serve people who live or work in their communities. These organizations strive to provide financial inclusion by tailoring their products, such as loans, to better meet the needs of their customers, Dionne says.

“Credit unions are getting better at having the best product and not saying no and figuring out what’s the best fit for that person coming in,” he says.

Other Borrowing Options

Even in states where laws seek to ban payday loans altogether, people are able to find alternatives to risky borrowing, says Charla Rios, researcher of low-cost loans and debt at the Center for Responsible Lending.

You may be able to work out a payment plan with your utility company or borrow from a friend or family member, she says. Here are some borrowing options to consider before getting a payday loan.

Payday advance. Some companies, including Walmart and Amazon, are giving their employees early access to a portion of their salary as benefits. It can be an interest-free way to borrow money if your employer offers it, but since the repayment comes from your next paycheck, it’s best to use it sparingly.

Cash advance applications. Apps like Earnin and Dave let you borrow a small amount of money, usually $25 to $200, before payday. They sometimes charge a fee for instant access to your money or ask for voluntary tips. They also take reimbursement from your next paycheck.

“Buy now, pay later.” For necessary expenses, a “buy now, pay later” loan allows you to purchase an item with partial payment only. You pay the balance in equal installments, usually over the next six weeks. This type of financing can be interest-free if you pay the full balance on time.

Low interest installment loans. Depending on your credit score and income, you may qualify for an installment loan with an APR below 36%. These loans have amounts ranging from $1,000 to $100,000 and are repaid over longer terms, usually two to seven years. Online lenders who offer bad credit loans often pre-qualify you for a loan using soft credit, allowing you to compare loans without affecting your credit score.

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Americans are in a bad mood, but that hasn’t dampened their spending: splurging on retailers, especially some retailers https://arizonaheli.com/americans-are-in-a-bad-mood-but-that-hasnt-dampened-their-spending-splurging-on-retailers-especially-some-retailers/ Tue, 17 May 2022 07:00:00 +0000 https://arizonaheli.com/americans-are-in-a-bad-mood-but-that-hasnt-dampened-their-spending-splurging-on-retailers-especially-some-retailers/ Retail therapy in bars and restaurants, cannabis stores and e-commerce? Other retailers not so lucky. By Wolf Richter for WOLF STREET. Retail sales jumped 0.9% in April from March, after jumping 1.4% in March from February, to $678 billion, and rose 8.2% from to a year ago, seasonally adjusted, the Commerce Department reported today. Retail […]]]>

Retail therapy in bars and restaurants, cannabis stores and e-commerce? Other retailers not so lucky.

By Wolf Richter for WOLF STREET.

Retail sales jumped 0.9% in April from March, after jumping 1.4% in March from February, to $678 billion, and rose 8.2% from to a year ago, seasonally adjusted, the Commerce Department reported today. Retail sales are only sales of goods and not of services. And we’ve been seeing for months now a widespread shift in consumer spending from goods to services, where spending had crashed during the pandemic but is now rising.

These retail sales today confirm this trend: despite the shift in spending towards services, consumers are still spending huge amounts on goods, and retail sales growth is close to the rate of inflation, with growth “ real” (adjusted for inflation) trending downwards. , because expenditure on services, corrected for inflation, largely compensates for it.

Consumers are in a bad mood, but that hasn’t dampened their spending.

Rampant inflation has outstripped income growth for many Americans, and they are also shifting their spending toward services. And yet, retail sales continued to rise, including online sales. What’s fascinating, in terms of the changes, is that there’s a big boom in bars and restaurants, and miscellaneous stores, which prominently include cannabis retailers – where sales have far exceeded the inflation rate.

This surge in sales comes even as consumer sentiment in May fell to its lowest level in a decade, according to the University of Michigan Consumer Sentiment Survey. Overall sentiment was battered by worries about runaway inflation that has spread to all sectors of the economy and is hitting consumers daily (data via St. Louis Fed and Consumer Survey from the University of Michigan):

Retail therapy? It’s as if consumers are trying to overcome their grief and anger over inflation with classic retail therapy to feel better – and they’re doing it in bars and restaurants, specialty stores that include shops of cannabis and with e-commerce. Other retailers are not so lucky.

Sales at dealerships of new and used vehicles and parts, the largest category of retailers, rose 2.2% in April from March to $132 billion, seasonally adjusted, but down 1.7% from a year ago. Used vehicle prices began to decline month over month, although they remain much higher than a year ago, while new vehicle prices continued to climb at a steady pace. record as new vehicle dealerships have terribly low inventories. And retail dollar sales are the result of this mix:

E-commerce sales and other “non-store retailers” rose 2.1% seasonally adjusted in April from March, to $107 billion, and rose 12.7% year-over-year. It is the second largest category of retailers and includes the e-commerce operations of traditional brick-and-mortar retailers, such as Walmart:

Food and Beverage Stores: Sales fell 0.2% for the month to $77 billion, seasonally adjusted, but still rose 7.1% year-over-year, driven entirely by price increases :

Food services and drinking places: The sales of these bars, restaurants, cafes, cafeterias, etc. jumped 2.0% for the seasonally adjusted month to a record $84 billion, and 19.8% year-over-year. This growth rate is nearly thrice the CPI inflation rate for “food outside the home” (7.2%), which indicates that people are going out to splurge and have fun and perhaps stifle their bad mood with the appropriate cash, and they spend heroic sums to do this.

General Merchandise Stores: Sales were essentially flat for the month at $57 billion, seasonally adjusted, and were up just 0.8% from the stimulus fueled in April a year ago. Walmart and Costco are in this category, but not major stores.

Service stations: Sales fell 2.7% for the month, due to lower gasoline prices, to $62 billion, seasonally adjusted. Year-over-year sales were still up 36.9%, fueled entirely by soaring gasoline prices year-over-year.

Stores of building materials, supplies and garden equipment: Sales were roughly flat for the month at $43 billion, for a year-over-year gain of 1.7% from Stimulus Miracle April:

Clothing and accessories stores: Sales increased 0.8% for the month and 8.0% year over year to $26 billion, seasonally adjusted:

Miscellaneous in-store retailers (including cannabis stores): Sales rose 4.0% for the month to a record $15.9 billion (seasonally adjusted) and were up 19% from a year ago. This category tracks specialty stores, including cannabis stores that have become one of the hottest trends in brick-and-mortar retail as part of the black market emerges:

Department stores: sales rose 1.1% for the month, to $11.5 billion, and were up 2.9% from a year ago. Price increases compensated for volume decreases. From the peak in 2000, sales were down 42% as this store format fell out of favor with Americans, causing thousands of stores to close and many bankruptcies:

Furniture and home furnishings stores: Sales rose 0.7% for the month (seasonally adjusted) and, at $12 billion, were up just 0.8% year-over-year, despite price increases:

Sporting goods, hobby, book and music stores: Sales fell 0.5% for the month to $8.9 billion (seasonally adjusted), and were down 5.4% year over year:

Electronics and appliance stores: Sales rose 1.0% for the month to $7.8 billion, seasonally adjusted, but fell 5.2% year-over-year. This segment only covers sales at specialty electronics and appliance stores, such as Best Buy or Apple stores. Electronics and appliances is a large business that is spread across many types of retailers, such as general merchandise and e-commerce retailers, and sales of electronics and appliances at these retailers are included in their segments (above).

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Stripping Wealth on Purpose: The Impact of Predatory Lenders in Memphis – Non Profit News https://arizonaheli.com/stripping-wealth-on-purpose-the-impact-of-predatory-lenders-in-memphis-non-profit-news/ Wed, 11 May 2022 13:14:08 +0000 https://arizonaheli.com/stripping-wealth-on-purpose-the-impact-of-predatory-lenders-in-memphis-non-profit-news/ Photo by Avel Chuklanov on Unsplash Memphis, according to the 2020 census, is home to approximately 633,000 people, 64.5% of whom are African American. As a new report from the Black Clergy Collaborative of Memphis (BCCM) and the Hope Policy Institute, the policy arm of Hope Credit Union, a Delta-based community development financial institution (CDFI), […]]]>
Photo by Avel Chuklanov on Unsplash

Memphis, according to the 2020 census, is home to approximately 633,000 people, 64.5% of whom are African American. As a new report from the Black Clergy Collaborative of Memphis (BCCM) and the Hope Policy Institute, the policy arm of Hope Credit Union, a Delta-based community development financial institution (CDFI), shows, Memphis is also home to an astounding 114 storefronts. predatory lenders. That’s more than one showcase for 6,000 people.

Those 114 storefronts, the report’s authors point out, represent “more than double the number of Starbucks and McDonalds combined” in the entire city (2). This is just one of the conclusions of the two organisations’ new report, entitled High-Cost Debt Traps Widen Racial Wealth Gap in Memphis, which examines at the micro level how the daily extraction of wealth from black Americans occurs in the city of Memphis, Tennessee.

Memphis, as census data also shows, is tied as the second poorest major city in the nation (500,000 or more), with a poverty rate of 24.6% in 2020. active working-class and especially black neighborhoods, predatory interest rates reinforce this poverty. In Memphis, 45% of black households and more than 50% of Latinx households are unbanked or underbanked, compared to 15% of white households (6). People without full banking services are of course most likely to turn to other sources of finance, including predatory lenders.

Memphis in Context: The National Reach of Predatory Lending

To NPQ we have written regularly about the racial wealth gap. Often the focus is on how to build BIPOC wealth. But no one should lose sight of the fact that BIPOC’s wealth is being stripped from communities every day. As Jeremie Greer of Liberation in a Generation wrote in Refuge Strength earlier this year: “The racial wealth gap is a systemic problem, not a product of the personal choices of black people. And no matter how many wealth-creating opportunities we create for black people and other people of color, those efforts will never be effective if we leave the processes of wealth stripping intact.

One of the processes described by Greer is predatory lending – loans with three-digit interest rates. According to an article published by the Federal Reserve Bank of St. Louis, “payday lending” is a $9 billion market. As economist Jeannette Bennett writes, on average “the typical $375 loan will incur $520 in fees due to repeated borrowing.” If check cashers and related businesses are added, the size of the predatory lending industry is even greater. One estimate puts the number at $19.1 billion. Black and Latino families are disproportionately affected. And as a recent study by University of Houston law professor Jim Hawkins and recent law school graduate Tiffany Penner published in the Emory Law Review documents, marketing is biased to attract borrowers of color.

In their paper, Hawkins and Penner found that in Houston, “while African Americans make up only 15.6% of auto title lender customers and 23% of payday lender customers, 34.8% of photographs on the websites of these lenders represent African Americans”. They add that 77.3% of ads in physical locations they surveyed targeted borrowers of color.

How predatory lending extracts wealth from communities

Predatory lenders go by many names, with payday loans, car title loans, and flex loans being the most common. Whatever their name, they have in common three-digit interest rates and coercive repayment mechanisms. In their report, Hope Policy Institute and BCCM describe how these lending mechanisms work:

Payday Loans: In Memphis, under Tennessee state law, a borrower can charge an annual percentage rate (APR) of 460% on a two-week loan. Some states allow even higher interest rates; Texas has the highest in the nation, with an APR of 664%.

What does 460% translate to bi-weekly? In fact, this equates to a fee of just over $17.50 per $100 borrowed. As the report’s authors explain, “Payday lenders gain access to a borrower’s bank account by requiring a post-dated paper check or Electronic Banking Authorization (ACH) as part of the loan transaction. This means that the day a borrower receives their income – whether it’s their paycheck, stimulus check, or Social Security check – the payday lender is first in line for repayment” ( 8). These loans can – and of course are regularly – rolled over for a certain price; more than 75% of payday lenders’ fees are generated by people who borrow for 10 consecutive periods of two weeks or more.

Car title loans: These are not guaranteed by a paycheck, but by a vehicle. According to the report’s authors, a typical loan of $300 will incur fees of $66 for 30 days, an effective APR of 267%. Like payday loans, these loans are typically rolled over, according to national data, an average of eight times. In Tennessee, in 2019, the most recent year for which data is available, 45% of car title loans issued that year defaulted and more than 11,000 cars were repossessed (9). Notably, 2019 was, relatively speaking, a good year for car title borrowers in Tennessee. In the six-year period from 2014 to 2019, title lending companies repossessed more than 101,000 cars statewide, an average of nearly 17,000 repossessions per year.

Flexible loans: These were created in Tennessee in 2014 and act like an open-ended line of credit that can be secured by a paycheck or a car. While payday loans are capped at $500, flexible loans allow you to borrow up to $4,000.  Tennessee state law sets the interest rate for flexible loans at 24%; however, borrowers must also pay daily port charges, or “usual charges,” of up to 255%, resulting in an effective combined annual rate of 279% (9).

The geography of lending

As noted above, the marketing efforts of predatory lenders are aimed at attracting borrowers of color. What’s more, when you look at a map of Memphis’ 114 predatory lending storefronts, it’s clear that the location of these storefronts is anything but random, with almost all located in neighborhoods heavily populated by people of color.

In addition to tracing the geography of storefront physical location, the report’s authors also trace the geography of storefront ownership. As the report details, 74 of the 114 storefronts are owned by companies headquartered outside of Tennessee, 52 of which are owned by just two companies: Ace Cash Express (Populus Finance Group) of Texas and Title Max (TMX). Financing) of Georgia. This means that more than half of the profits generated by payday lenders, title companies and flex lenders are extracted entirely from the Memphis community and instead end up in the hands of out-of-state investors and managers.

Political solutions

There are many complex issues regarding economic policy. However, the end of three-digit interest rates is not one of them. As BCCM President Reverend J. Lawrence Turner puts it in the report, which he co-authored, the impact of charging interest of up to 460% on loans serves to “effectively entrap workers poor in webs of long-term debt” (7).

It should be noted that today’s predatory lending is a relatively recent development. As Pew Charitable Trusts has documented, although it may appear payday lenders have always been with us, this is not the case. Beginning in 1916, and for many decades, states limited monthly interest rates to 3.5%; annual APR ratings ranged from state to state from 18 to 42 percent. This changed with consumer protection deregulation in the 1970s and 1980s. As Pew puts it, “As this deregulation continued, some state legislatures sought to act in kind for lenders based in the state by allowing deferred presentment transactions (loans made against a post-dated check) and three-digit APRs. These developments set the stage for state-licensed payday loan shops to flourish.

Even today, only 18 states and the District of Columbia cap loans at annual rates of 36% or less. They include many Northeastern states (Vermont, New Hampshire, Massachusetts, Connecticut, New York, New Jersey, Pennsylvania, and Maryland). But many others have also taken action. For example, in the South, Arkansas, West Virginia, North Carolina and Georgia have passed similar laws. In the West and Midwest, similar laws exist in Illinois, Montana, South Dakota, Nebraska, Colorado, and Arizona. A recent American banker The article adds that similar legislation is currently being debated in four other states: Michigan, Minnesota, New Mexico and Rhode Island. There is also pending federal legislation introduced by Sen. Sherrod Brown (D-OH) that would create a 36% maximum rate nationwide.

The report’s authors add that even if the Senate blocks legislative action, the federal Consumer Financial Protection Bureau could use its regulatory authority to act. “The CFPB,” the authors insist, “has the ability to enact new rules that ensure high-cost lenders, like those in Memphis, don’t endlessly trap people in cycles of unaffordable debt like they currently doing” (7).

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Houston Investors and Mentors Name 9 Most Promising Energy Startups at Rice Alliance Event https://arizonaheli.com/houston-investors-and-mentors-name-9-most-promising-energy-startups-at-rice-alliance-event/ Wed, 04 May 2022 07:00:00 +0000 https://arizonaheli.com/houston-investors-and-mentors-name-9-most-promising-energy-startups-at-rice-alliance-event/ Kelly Avant hasn’t really charted a linear career path. After majoring in gender studies, volunteering with the Peace Corps, and even attending law school, she identified a way to make a bigger impact: venture capital. “VC is a great way to shape the future in a more positive way, because you can literally wire money […]]]>

Kelly Avant hasn’t really charted a linear career path. After majoring in gender studies, volunteering with the Peace Corps, and even attending law school, she identified a way to make a bigger impact: venture capital.

“VC is a great way to shape the future in a more positive way, because you can literally wire money to the most innovative thinkers, who are building solutions to the world’s problems,” Avant told InnovationMap.

Avant joined the Mercury Fund team last year as an MBA associate before joining full-time as an investment associate. Now, having completed her MBA from Rice University this month, Avant tells InnovationMap why she’s excited about this new career in Q&A investing.

InnovationMap: From law school and the Peace Corps, what inspired you to start a career in the venture capital world?

Kelly Front: I got an MBA from Rice University, started looking for an investment company in my freshman year, and the summer after my freshman year, I was basically working a full-time internship at Mercury . But I love telling people about my undergraduate degree in gender studies and rhetoric from a small ski college in Colorado. If you come across anyone else in venture capital with a degree in gender studies, please get in touch, but I think I might be the only one. I’ll spare you what I thought — and said — of business students, but I’ve really come full circle.

I always thought I would work in a non-profit space, but after serving in Cambodia with the Peace Corps, working for the National Domestic Violence Hotline, and briefly attending Emory Law School with the intention of becoming a lawyer for civil rights. I found this time and again the root of the problem was a lack of resources. The world’s problems were not going to be solved with my idealism alone.

The problem with operating as a nonprofit in capitalism is that you always pander to donor interests. The NFL was a key sponsor of the National Domestic Violence Hotline. The United States has a complicated relationship, to put it lightly, with Cambodia and Vietnam. It became quite clear that the donor/nonprofit relationship often put the wrong party in charge. I was, and still am, very interested in alternative funding for nonprofit organizations. I became convinced that the most exciting companies build solutions to the world’s problems while making a profit, which allows them to survive to have a lasting positive impact.

VC is a great way to shape the future in a more positive way because you can literally wire money to the most innovative thinkers, who are crafting solutions to the world’s problems.

IM: What companies are you passionate about?

KA: There are some super interesting founders that I have come into direct contact with. To name a few: CiviTech, DonateStock and Polco.

I am very proud to work on mercury investments like Houston’s Topl, which has built an extremely lightweight and energy-efficient Blockchain that tracks ethical supply chains from the initial interaction.
I’m also excited about Mercury’s investment in Zirtue, which enables relationship-based peer-to-peer lending to address the massive problem of predatory payday lending.

We have so many awesome founders in our portfolio. The best part of working in VC is meeting passionate innovators every day. I’m excited to go to work every day and help them create better solutions.

IM: Why are you so passionate about diversity and inclusion at Mercury?

KA: I love working with exciting, highly skilled and super smart people. This category includes so many people who have historically been excluded. As a member of Mercury’s investment team, I have a voice, and I have an obligation to use that voice to praise the best people in the Halls of Influence.

IM: With your new role, what are you focusing on the most?

KA: In my new role, I identify and research high potential investments. We are building an educational series on Mercury to lift the veil on VC. We want to facilitate a series that gives all founders the foundational skills to successfully complete venture capital due diligence and have the ability to build the next innovative companies. My goal is ultimately to produce the best possible returns for our investors, and we can’t achieve that goal unless we develop resources to meet the best founders and help them grow.

——

This conversation has been edited for brevity and clarity.

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How to optimize your savings and prepare for your retirement | Smart Change: Personal Finances https://arizonaheli.com/how-to-optimize-your-savings-and-prepare-for-your-retirement-smart-change-personal-finances/ Sat, 30 Apr 2022 07:00:00 +0000 https://arizonaheli.com/how-to-optimize-your-savings-and-prepare-for-your-retirement-smart-change-personal-finances/ (Ryan Sze) At the risk of stating the obvious, you need money to make money. What is less obvious is or and in what Ordered to save and invest. After all, everything from tax-efficient retirement accounts to your cousin’s new start-up business seems like a place to put your hard-earned money. However, just because you […]]]>

(Ryan Sze)

At the risk of stating the obvious, you need money to make money. What is less obvious is or and in what Ordered to save and invest. After all, everything from tax-efficient retirement accounts to your cousin’s new start-up business seems like a place to put your hard-earned money.

However, just because you can investing in certain things does not mean that you should. If you want to maximize your long-term wealth, you can’t allocate your dollars haphazardly. You need a plan — a systematic way to control your savings and investments. While these rules don’t have to be hard and fast, they can serve as good rules to follow.

Image source: Getty Images.

Start by tackling any high-interest debt

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Before investing a penny, first think about eliminating all your high-interest debt. Prioritize paying off your credit cards, payday loans, and other types of debt with double-digit interest rates. (However, debts with relatively low interest rates, such as mortgages and car loans, can be kept.)

There are two advantages to this strategy. For starters, reducing those heavy debts can help you sleep better at night. But it’s also good for your financial well-being since you effectively recoup the interest you would otherwise have had to pay.

Second, build an emergency fund

Now that your high-interest debt is gone, it’s time to establish an emergency fund. Also known as a rainy day fund, this cash reserve will act as a financial cushion if you ever lose your job, need medical attention, or experience another type of emergency.

In general, try to set aside at least 6 months of expenses, although you can always err on the side of caution and save a little more. For best results, house your emergency fund in a high-yield savings account or money market fund, like this one from Vanguard. Federal Money Market Fund (NASDAQMUTFUND: VMFXX).

However, don’t worry too much about maximizing yield here. Even if your money is just gathering dust, that’s okay. In fact, that’s arguably the point – to have a stable, easily accessible supply of cash on hand when you need it most.

Then contribute to your retirement accounts

Now that your short-term financial needs are met, it’s time to save and invest for the long term in a tax-efficient way.

On the retirement front, you can contribute to a traditional or Roth Individual Retirement Account (IRA). With a traditional IRA, your initial contribution is tax deductible – and the money, once inside the account, is compounded on a tax-deferred basis. Upon withdrawal, the income is taxed as ordinary income.

On the other hand, Roth IRA contributions are not tax deductible. However, funds inside the account become tax-exempt and you are not taxed on earnings or withdrawals.

In 2022, you can contribute up to a total of $6,000 (plus an additional $1,000 if you’re 50 or older) to either type of IRA, though Roth contributions are subject to additional income restrictions. To be eligible, single filers must have a modified adjusted gross income (MAGI) of less than $144,000, and married filers’ combined MAGI must not exceed $214,000.

If your employer offers a 401(k), you can also use that. In 2022, you can contribute up to $20,500 combined (or up to $27,000 if you’re 50 or older) into traditional or Roth 401(k).

401(k) contribution limits are in addition to IRA limits, so you can potentially save $6,000 (up to $7,000) in your IRA and $20,500 (up to $27,000) in your 401(k) in the same year. Of course, that’s a lot of money, so don’t worry if you can’t hit those limits – but if you can, that’s great! Instead, try to at least maximize your employer match if possible.

Then consider other tax-efficient savings accounts

Retirement accounts aren’t the only ones with built-in tax benefits. If you have a Health Savings Account (HSA) or have established a 529 College Savings Plan for a child, consider contributing to these investment accounts as well.

HSAs must be associated with a high-deductible health plan (HDHP) and are subject to annual contribution limits. In 2022, individuals can save up to $3,650, while families are limited to $7,300. People 55 and older can make an additional “catch-up” contribution of $1,000.

What does this mean to you

Finally, if you have money left over after maximizing all your tax-advantaged accounts, you might consider saving and investing in a taxable brokerage account. Or, maybe you can indulge a little – you decide!

Either way, the message is simple: save in a strategic, tax-efficient order that maximizes your short- and long-term financial well-being.

Save enough for now so you can cover your bills, pay off debts, and weather the tough times, as well as save enough for retirement, medical bills, your child’s education, and other important expenses that may arise. occur in the future.

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Wisconsin is paying for a practice that some say is legalized loan sharking https://arizonaheli.com/wisconsin-is-paying-for-a-practice-that-some-say-is-legalized-loan-sharking/ Fri, 29 Apr 2022 21:50:00 +0000 https://arizonaheli.com/wisconsin-is-paying-for-a-practice-that-some-say-is-legalized-loan-sharking/ MILWAUKEE — A new study shows that Wisconsin residents pay some of the highest rates in the nation for payday loans. There are payday loan companies all over the country. There are approximately 23,000 of these lenders open right now. That’s almost double the number of McDonald’s open across the country. A man we spoke […]]]>

MILWAUKEE — A new study shows that Wisconsin residents pay some of the highest rates in the nation for payday loans.

There are payday loan companies all over the country. There are approximately 23,000 of these lenders open right now. That’s almost double the number of McDonald’s open across the country.

A man we spoke to in Milwaukee, who only used his first name, Trey, said he prefers using these types of businesses over banks. Although he does not get any loans from them.

Nati Harnik/AP

In this photo from Friday, Feb. 17, 2017, an unidentified person leaves the storefront of the EZ Money Check Cashing store in Omaha, Neb. (AP Photo/Nati Harnik)

“The banks, they want answers. They don’t want answers. They give you what you ask for,” Trey said.

Screenshot 2022-04-29 at 15:47.18.png

ATM4

Trey, who did not give his last name, says he regularly uses a check cashing store because he doesn’t like dealing with banks.

Another man we spoke to, who didn’t want to go on camera, says he got a payday loan and would never get one again because the interest was exorbitant.

Wisconsin does not cap the amount of interest a payday lender can charge.

Only these 18 states cap payday loans at an interest rate of 36% or less:
Arkansas
Arizona
Colorado
Connecticut
Georgia
Hawaii
Maryland
Massachusetts
Montana
Nebraska
New Hampshire
New Jersey
New York
North Carolina
Pennsylvania
South Dakota
Vermont
West Virginia
washington d.c.

In Wisconsin, the average person who borrows from a payday loan store typically pays hundreds of dollars in fees.

Pew Charitable Trusts found that if someone borrows $500 from a payday lender, the average cost to borrow that money is $395 in fees. That’s an interest rate of 338 percent. The average credit card interest rate is 16%.

On top of that, one in four people typically re-borrow on the same payday loan at least nine times, according to the Consumer Financial Protection Bureau.

andre jacque.jpeg

Wisconsin Department of Administration

“It’s always at such an exorbitant level that you take on subsequent loans and really create this cycle. This debt trap that people can never get out of from below, and that’s predatory lending, purely and simply,” said Republican state senator André Jacque.

He introduced a bill this year to cap the amount of interest payday lenders could charge at 36%. But this bill was not passed before the end of the session.

The Wisconsin Bankers Association is one of the groups advocating against caps for payday lenders. The president and general manager of the association Rose Oswald Poels says they are against any type of interest rate cap. Even though they say they would like to see more regulation on the industry as a whole.

state capital

UniversalImagesGroupUniversalImagesGroup

State Capitol, Madison, Wisconsin. (Photo by: Universal Images Group via Getty Images)

“We just don’t want to cap interest rates on loans. I don’t think it’s in anyone’s interest to arbitrarily set interest rates on the loan,” Poels said.

Jacque says if banks and credit unions can deal with regulations, why not payday lenders?

“A lot of people have been hurt by predatory lending, and this is, I think, an easy way to make sure it doesn’t affect more of our citizens,” Jacque said.

He plans to reintroduce legislation to regulate payday lenders next year. In the meantime, he encourages people who need a quick loan to check with a bank or credit union first and find out what fees you might pay if you got a short-term loan. .

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The data speak volumes in support of the monthly child tax credit https://arizonaheli.com/the-data-speak-volumes-in-support-of-the-monthly-child-tax-credit/ Thu, 28 Apr 2022 11:00:01 +0000 https://arizonaheli.com/the-data-speak-volumes-in-support-of-the-monthly-child-tax-credit/ Last year’s pandemic relief package, America’s Bailout, may have held the key to a long-term strategy to end child poverty in America. Studies over the past year have found significant evidence that one policy extension effectively reduces hardship, boosts families’ financial security and supports mothers in the workplace: the Monthly Child Tax Credit . In […]]]>

Last year’s pandemic relief package, America’s Bailout, may have held the key to a long-term strategy to end child poverty in America. Studies over the past year have found significant evidence that one policy extension effectively reduces hardship, boosts families’ financial security and supports mothers in the workplace: the Monthly Child Tax Credit .

In a recently published study, my colleagues and I surveyed some 1,200 parents who received the Child Tax Credit in monthly installments from July to December 2021. We also surveyed a control group of Americans with income levels similar in order to draw conclusions about the benefits that receiving a monthly tax cut could bring to a wide range of areas, including work, health, and financial stability.

We found that families were more financially secure, more likely to work, and better equipped to make healthy choices thanks to monthly child tax credit payments. The wide range of observed benefits for families, coupled with the policy’s established cost-effectiveness, make it a prime candidate for long-term use to strengthen American households.

Our study found that families used the Monthly Child Tax Credit to cover routine expenses that families would be expected to face regularly on a monthly basis. Groceries, paying rent, and clothing were among the most common uses. In addition to covering these expenses, families receiving the CTC were less likely to be evicted from their homes. They were also able to pay off credit card debt, save for emergency funds, and forgo other sources of income like selling blood plasma and payday loans.

As observed by the Census Bureau, hunger in households receiving the Monthly Child Tax Credit was reduced by 24% after the first payment in July 2021. Our own observations reveal that not only were fewer families suffering from hunger, but that families were also equipped to prepare healthier foods. choices. Recipient households were more likely to increase their consumption of fruit, as well as meat and protein intake, and more likely to report an increased ability to afford balanced meals compared to households not receiving the credit.

Over the long term, reducing household hunger would likely bring measurable improvements in child development. A 2015 Center for American Progress article found that food insecurity significantly increases a child’s risk of long-term developmental delays. Reducing hunger through policies such as the CTC would lift millions of children out of situations in which their level of income would have a negative effect on their education and development.

WASHINGTON, DC – JULY 14: A view of the KU Kids Deanwood Childcare Center Kids Complete Mural to celebrate the launch of the Child Tax Credit on July 14, 2021 at the KU Kids Deanwood Childcare Center in Washington, DC.
Countess Jemal/Getty Images

The monthly CTC is important to me both as a researcher and as a mother. I spent the first few months of the pandemic bouncing a baby, quasi-joining Zoom meetings, homeschooling my preschooler, and doing real work after bedtime. . My patience was thin, my productivity nearly non-existent, and my functional ability rapidly diminishing in all areas of life. In a way, I was still one of the privileged few to get through the past two years with my family’s physical and financial health more or less intact.

Millions of mothers have left the workforce, either because they worked in sectors more vulnerable to layoffs (such as the service sector) or because of increased care responsibilities (ill family members, closure daycare, distance learning, etc.). The mental health of parents and children has declined and domestic violence has increased. For those struggling during the pandemic, the monthly child tax credit support was a lifeline.

Ninety-four percent of parents receiving monthly Child Tax Credit payments said they would work the same amount or more with the credit. More than half of those who said they worked less were parents of infants or toddlers. After the credit expired, about 1.4 million households experienced a decline in employment in one way or another. Multiple analyzes found no significant difference in the employment patterns of recipients and non-recipients over the six months of the credit. Contrary to the predictions of its detractors, the monthly child tax credit has been enable work, without providing an incentive to avoid earning a paycheck.

Nearly two-thirds of parents in our survey expressed a preference for monthly payments over CTC’s flat-rate annual iteration, and it’s not hard to see why. The costs on which parents used the credit demonstrate that the payments are much more useful to households as regular monthly support. Families don’t budget on a yearly basis – they budget according to the timelines set by their usual work income and the costs they need to cover to meet their basic needs.

As one father in Arizona explained, “We didn’t have to figure out how to stretch our tax return all year. Warning.”

While some families, like mine, are slowly regaining some sense of normalcy after two years of the pandemic, for many others the end of credit means a return to economic insecurity and having to choose between paying bills and to buy food. In just the first six months of the credit, child poverty fell by 30%, but rose again by 41% immediately after the last monthly payment in December. This policy has proven to be an effective means of reducing family difficulties and poverty. We have the tools to correct course. The only question that remains is whether we have the political will to do so.

Leah Hamilton is an associate professor at Appalachian State University and an affiliate professor at the Social Policy Institute at Washington University in St. Louis.

The opinions expressed in this article are those of the author.

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Comparison of States with Highest and Lowest Levels of Personal Debt and Income | News https://arizonaheli.com/comparison-of-states-with-highest-and-lowest-levels-of-personal-debt-and-income-news/ Tue, 26 Apr 2022 21:30:00 +0000 https://arizonaheli.com/comparison-of-states-with-highest-and-lowest-levels-of-personal-debt-and-income-news/ Americans collectively owe more than $15.3 trillion in personal debt, accumulated by financing homes and cars, taking out loans to attend college, or simply using credit cards. However, debt is not necessarily a sign that borrowers are living beyond their means or buying irresponsibly. It is often used as a tool to achieve financial goals […]]]>

Americans collectively owe more than $15.3 trillion in personal debt, accumulated by financing homes and cars, taking out loans to attend college, or simply using credit cards. However, debt is not necessarily a sign that borrowers are living beyond their means or buying irresponsibly. It is often used as a tool to achieve financial goals that can have long-term benefits, such as buying a home to build capital over many years. Each state’s debt and income profiles vary widely when factors such as housing prices, cost of living and economic opportunity are taken into account.

Although not a factor in credit scores, lenders consider an applicant’s balance of debt and personal income when deciding whether to approve credit applications and when they set account terms, such as interest rates. The more your income is used to pay off debt, the harder it can be to get approved.

Experian compared data from its consumer credit database with statistics from the Bureau of Economic Analysis (BEA) to calculate the states with the highest and lowest personal debt ratios. Average personal income figures are from BEA, while personal debt balances are derived from Experian’s consumer credit database as of the third quarter (Q3) of 2021, and wages are used to contextualize the debt profile of each State.

However, many factors come into play when examining debt profiles, and not all of them can be included in this analysis. For example, the ratio of personal debt to income levels fails to capture the full financial picture of the “credit invisibles” – 45 million Americans with poor or no credit – as well as systemic disparities in lending practices.

In addition to the pervasive influences on debt and income, the pandemic has highlighted the different financial realities of people across the country. While many have lost their jobs or suffered financial hardship, others have seen their situation improve. States including Idaho and Utah with booming economies and record housing growth are prime examples of the widening economic gap: as Americans in some states bought homes from dream and were driving a local economic boom, others were struggling to get by.

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