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Alexandra’s Blog » 2007» March

Alexandra’s Blog

March 30, 2007

As I Went To Pay Off Two Payday Loans, I Thought About What I Was Doing on Payday A Year Ago….

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Uncategorized — Alexandra @ 7:22 pm

March 31, 2006: I was waiting on my paycheck to come knowing that the full 1000.00 was not going to be in there. I would sit in my office and examine my paystub, having direct deposit. Watching the clock go by steadly reaching 10AM, others in the office were busy paying bills and thinking about a good weekend they were to have with family or friends. Of course, they had debts, but they had money at the end of the day and a peace of mind. I, on the other hand, watched shamelessly as the bank statement rolled up on the computer and witnessed money just disappear before I had a moment to spend it. $90 to Cash Central; $60 to CashnetUSA; another $90 to One Step and another $90 to Ten Dollar Payday Loan. Again, I slumped down in my chair and rubbed my weary eyes.

March 30, 2007:  Today was a pleasant day. Upon waking, I saw the sun was shinning and the pollen was freshly splashed all over my vehicle. I immediately went to my computer and checked my checking account. The entire $1000 plus an additional $100 was in my account. I checked to see what else had come in or what had went out but nothing was present. The full $1100 was there and had not been touched. I smiled with amazement for one year before, I was miserable. What a difference a year makes.

March 31, 2006: It was going to be another long day. Robbing Peter to pay Mary, Paul, Britney, Marvin etc.  I had to make three important stops. The first stop being to the payday loan places where I would pay money to reborrow so that I can pay the bills. I am miserable as I glanced at three hundred dollars disappear so fast and wondering how was I going to pay the phone bill again. Disappointed, I glanced at the lady at the counter and gave her my check again. This was a vicious cycle and was enduring it.

March 30, 2007: After leaving from work, I made the fifteen minute trip to Wal-Mart. The traffic was fierced today considering it was the last day of the month for most and payday for many of us. With three hundred and fifty dollars sitting comfortably in my recently purchased purse, I remembered to check my calendar where I had placed the necessary information on a post it note. Gently, I glided through traffic and made my way toward Walmart, the low price leader and probably the worst place to be on a Friday afternoon.

March 31, 2006: I glanced at Wal-Mart and saw how packed it was. It was Thursday and there people there. Shopping, snacking, enjoying themselves. I was wondering if I had the money to buy at least a pair of knee highs but I didn’t have not one dollar on me. Having just been paid, I was looking at an empty wallet because the money, or what was left, in my checking account, was going to pay more loans and still trying to find money to pay the phone bill. I passed by without glancing anymore.

March 30, 2007: I entered Wal-Mart’s parking lot bracing myself for the flood of people that were going to be there. And there was. People everywhere. Long lines, not too many clerks and of course, I had to go to the customer service department. It was the only place that I knew that had a MoneyGram center. A long line of people bringing back things such as toys, shoes and cashing checks stood before me. I grabbed two of the express pay sheets and filled them out. Today, despite the issues that I had, was going to be a good day.

I had come to Wal-Mart and to Money Gram to make two payments, two final payments to two different companies. Two different payday loan companies that have been my addiction for almost two years. With pen in hand, I made sure to write correctly the information necessary to complete the transaction. I gave them each their pay, which was agreed upon via a settlement offer earlier in the week.

Then I waited in line for what felt like only a few minutes but was actually twenty. Finally, I approached the clerk with a smile on my face. She said that I was the only person who actually had smiled at her today. She held a conversation with me as she sent the payments to Cash Central and to CashnetUSA to their respective areas. Once I was done, I felt complete. Two hundred dollars was gone but it was gone to paying off two debts that a year ago, I would have never paid.

As I walked out of Wal-Mart, I looked down in my purse, looking for my keys. I saw a twenty dollar bill, a ten dollar bill, and a five dollar bill. One year ago, I didn’t have a dollar let alone $35. It is amazing what a difference a year makes. I am blessed. Blessed because I decided in August to reach out and find help. Blessed to have a dollar in my purse. Blessed to be happy.

Then I decided to go home. Upon coming home, I realized that I hadn’t paid the phone bill and prompty went to the internet to pay it in full. As I watched the payment go through via the channels of the world wide web, I leaned back in my chair and felt a sense of relief come through me.

Then I decided to write in my blog.

March 31, 2006: As I took the drive home realizing that I still did not have money to pay the phone bill, I then began to realize that I hadn’t paid a bill that I promised I would pay the week before. Regretfully, I turned the car around and went to the loan company I had owed and gave them the money that I was going to use to pay for the phone bill. I then picked up the phone when I got home and asked MCI for an extension. I went to bed, crying asking God to get me out of this mess. And then I fell asleep knowing that the problems would still be there in the morning.

March 24, 2007

CashnetUSA Has Agreed To Settlement

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Uncategorized — Alexandra @ 7:37 pm

I had been having a rough week in my life but good things come to those who wait.

Today, I received the email from CashnetUSA indicating that they want to settle my account for the amount that I had agreed to. I am going to pay them off this week. Finally! Success. After that moment, I started to feel good about everything. One down and several more to go.

March 20, 2007

Everybody Wants Extra (Something For Nothing)

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Uncategorized — Alexandra @ 11:45 pm

Is it just me or does everyone want something extra for nothing?

Of course, we all want something for nothing. We would love to get extras on everything but we know that is not always the case considering we are not going always get everything we want and there are certain areas that are not going to give us something for nothing.

However, in the last few years, I have noticed that there are certain individuals, business owners, who are now wanting something extra. Something, I honestly don’t see needs to occur.

Take for example my “former” trainer. The more I thought about it, the more I found that I was being sent to the cleaners. He was always looking for some way to make some extra money. And like the kind considerate person I was, I would oblige. After giving him a check for a full week of work, I would also throw in something a little extra, maybe a few more dollars. Well, this person decided that they could go to the well a little bit more. One month, I decided to pay the trainer a fee at the end of the month. Being that it was the holidays, I wanted to do something nice for a person who had been nice enough to me. With the month’s check, I put in an additional forty dollars. 

You would think that the trainer would be pleased with this option. However, he gave me a bill whereby, get this, he had already given himself a raise! The more I think about it now, the more I had wished I would have saved that money to pay on a bill. He was expecting something for nothing. And now he is getting nothing. Life is so unfair.

This “extra” something led me to leave a hairstylist. When I first went to this stylist, I was impressed by her work and her reasonable prices. I had been going to her shop for a few months when I noticed that she had posted a sign in pink regarding her new policies in the shop. Of course, she had to raise the prices of her products. I can understand that considering that there was inflation and our economy is shot to hell. But then, when I saw that she was going to charge you $25 for failing to cancel an appointment at least one day prior to, I was floored. It was on that same day that she was giving me a relaxer. She was explaining to the lady that her relaxers no longer cost $35, they were now $60, which did not include the shampoo ($15) and a deep conditioner ($15). Was I going to a hair stylist in a small town or somewhere in New York?

What made matters even worse was the fact that after I had gotten the relaxer, my hair started coming out badly. Upon going to another stylist, she informed me that I had been the receipent of a expired perm!

Now, here comes the doctor. A doctor who had been going to for a while now has decided that he wants to be put up a sign as well. Anyone who does not call to cancel an appointment (did not specify a time limit) will have to pay an additional $25.

Have these individuals ever heard of emergencies? What happened to patient or client’s happiness? Why are we, as a society, trying to get something for nothing? Ever been to a loan company where they told you that you had to pay your bill on a certain date or otherwise they would charge you  fee for being late? Whatever happened to courtesy?

Sure  I know that there are some people who make appointments but don’t show intentionally. But should we have to suffer for their mishaps? Things come up, accidents happen, relatives pass, dogs die, but yet I am going to be punished for not showing up?

I guess you know what happened after that. The trainer slowly saw the clientele decreasing (probably because the trainer was trying to cheat the best clients). The hairstylist eventually started losing customers. Guess what’s going to happen to the doctor? Enforcing this type of policy is wrong because you feel as if an individual was wasting your time. I want all of three of these people to step into the consumer shoes for a moment and imagine if the cleaners told you have to come pick up your suit by 5 p.m. or get charged a holding fee?

What if your creditor said that you had to pay a bill by Wednesday or get charged extra for your services? What if these three individuals had something that had to be at a particular time or had an appointment that if they didn’t cancel they had to pay $25 or better yet $100? They wouldn’t want that either, so why do this to your clients and consumers?

March 15, 2007

Dump a Trainer, Pay A Bill

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Uncategorized — Alexandra @ 1:01 pm

Save a horse, ride a cowboy. I believe that is a song by Big and Rich.

Yesterday, I decided that it was time to let my trainer go. I had been going to a trainer for two years now and only saw up and down results. I had been having this discussion with the Lord on ways to save money and be debt free. Finally, I began to see the light. I needed to let the trainer go.

I was paying a trainer almost three hundred dollars a month and wasn’t really getting anywhere. When I injured my ankle a few days ago, my doctor recommended that I hold out on training for a while. The doctor said I will end up having surgery for the injury.

My trainer appeared so unsympathetic. He told me that I can see work out on the other leg! I can work on other things while still paying him.  Plus, he said that I needed to pay him for the past week I was there. Didn’t ask me how I was doing. Didn’t ask me what specifically the doctor said. He asked about his check and seemed perturbed.  I am injured and all he wanted was the money.

So I decided to dump my trainer and used that money I was giving to him and paid off my debt today. It was amazing walking into the loan company and telling them that I was paying the loan off in full. At first, the lady didn’t want to take the money! And I after I had paid the debt, I asked me if I wanted to borrow more. Amazing huh?

The money I am using to pay this guy I can use it for a purpose to improve my credit and the money in my checking account.

Plus, I find that exercising with the programs on lifetime television in the morning has helped me out more. My trainer was becoming stale and incompetent as he wasn’t showing me the service that I deserved and was paying for. I decided to also dump the gym I was going to.  Nothing personal against the gym but that $55 a month can go toward getting rid of a payday loan.

March 11, 2007

Payday Loan Legislation Continues

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Uncategorized — Alexandra @ 8:50 pm

Every once in a while, I read on the internet a story about another state coming up with laws regarding payday loan legislation in the hopes that my state of Louisiana rid of us of these people once and for all. Here is another story I would like to share with you.

From the Associated Press:

Payday loans under pressure
Industry launches ad campaign as states, consumer groups get tough

Associated Press

COLUMBIA, S.C. – Soft music plays in the background of a new TV ad campaign as it urges viewers to only use payday loans for emergencies. One scene shows a broken-down car. Another depicts a young boy in a doctor’s office, his arm in a sling.

“Please borrow only what you feel comfortable paying back when it’s due,” says Darrin Andersen, president of the Community Financial Services Association. A new emblem will tell borrowers which lenders meet his trade group’s requirements, Andersen says in the ad.

The $10 million campaign, announced last month along with some industry policy changes, came as states from Virginia to New Mexico consider legislation to limit payday lending practices. But it’s not stopping consumer watchdogs and people already in debt from questioning the motives of an industry whose loans’ annual interest rates can exceed 400 percent.

“Payday lenders make it easy for consumers to get trapped in predatory debt,” said Teresa Arnold, legislative director for AARP in South Carolina.

Payday lenders offer quick cash advances – for a fee – secured by a postdated personal check from the borrower. Customers are supposed to repay the loan after they receive their next paycheck. Borrowers who can’t pay often “roll over” the loan repeatedly, leading to more charges that can quickly add up and lead to a cycle of debt. Customers are drawn to the lenders because, unlike banks and credit unions, they don’t run credit checks.

Rena McFadden and her husband have become trapped. Her husband has been dealing with lenders threatening court action unless the McFaddens quickly repay the $2,400 they owe.

“The time to repay is too short. He’s been trying to talk to them, but they won’t talk,” said McFadden, a 39-year-old who works in a dry cleaning shop. “They want the money by the next pay day. How are you supposed to pay your bills?”

There are more than 22,000 payday advance locations in the United States that garner $6 billion annually in revenues, according to Steven Schlein, a spokesman for the financial services association, which represents about two-thirds of payday lending companies.

The payday loan industry’s biggest change would give customers more time to pay back a loan with no financial penalty. This “extended payment plan” would be available at least once a year and provide borrowers between two and four extra months to pay off loans. It was paired with the ad campaign and a ban on ads that promote payday advances for “frivolous purposes” like vacations.

But lawmakers are still pushing changes. In South Carolina, home to Advance America, the nation’s largest payday lender, lawmakers are considering a measure that would cap at 36 percent the annual interest fee on the loans and limit the number of payday loans a consumer could have with a single payday loan company.

Eleven states already have similar interest-rate limits on payday lenders, according to consumer watchdogs, and the payday lending industry considers such rates too low to remain profitable. New proposals in 10 other states would impose similar limits, said Carol Hammerstein, a spokeswoman for the Durham, N.C.-based Center for Responsible Lending.

Hammerstein said the push for new interest rate limits comes in the wake of caps imposed last fall by Congress. Legislators put a 36 percent annual cap on loans to military service members following disclosures that thousands of troops were in debt to payday lenders.

State Rep. Alan Clemmons, a Republican who introduced the South Carolina legislation, said it’s needed because neighboring states have either banned or sharply restricted payday loans. In response, lenders have increased business in South Carolina, and the state has become “payday lender Mecca,” Clemmons said.

Jamie Fulmer, director of investor relations for Spartanburg, S.C.-based Advance America, said the loans are paid back on time by the vast majority of customers and that penalties for bouncing checks or making late credit-card payments are more severe than payday loan rates.

He said the industry was willing to consider “reasonable” change, but that Clemmons’ proposal to cap the loans was a backdoor attempt to end them. It would amount to the industry earning only $1.38 per $100 for a two-week loan – far too little to cover overhead, he said.

“It costs more money to go to a bank and withdraw my own money from an ATM,” Fulmer said. “The market is pretty efficient. If there were someone out there who could offer this product to consumers less expensively, they would do it.”

AARP in South Carolina is not content with the industry program announced last week. Arnold said the number of payday lenders in the state has more than doubled over the last five years. AARP’s 2005 survey of credit counselors found that one in four clients had payday loans – usually multiple loans – and that the loans were a major part of their credit problems.

“It’s not unusual (for counselors) to see clients paying $1,600 for a $500 loan,” Arnold added.

At Fort Jackson near Columbia, the head of the installation’s consumer advocacy and financial advising programs said she knows soldiers who had been paying up to 900 percent interest on their loans.

“We’ve seen some pretty ugly cases,” Madelyn Mercado said.

Lately, she’s seen a drop in the number of soldiers seeking help because of payday loan problems. Although Mercado said she can’t be certain of the reason, she thinks the drop is because of the interest limits passed by Congress and signed into law by President Bush in October.

“We used to see two, three, four soldiers a week with this problem,” Mercado said. “We haven’t seen a soldier come in with a new payday lending problem since the end of December.”

Also, Mercado said the Army has been making a big push to educate soldiers about their credit, and has speeded the process through which $1,000 loans can be made to soldiers through government-sponsored non-profit organizations.

“It’s a very embarrassing situation to be in, to admit you are in debt,” she said.

Their debt forced Rena McFadden and her husband, Mitchell, who works at a shipping warehouse, from their plans to buy a house. They started with one $100 loan to make some improvements to a home they wanted to buy.

“He paid some of that one back, but then he got another loan for $200, then $300,” Rena McFadden said.

She said the situation snowballed and now the couple owes $2,400 in five loans to different lenders. Saving money became impossible, and they couldn’t buy the house, she said.

In a bid to save money, McFadden said she gave away her two dogs, Shaky and Lucky.

“I loved them dogs. That really hurt me,” McFadden said. “We had plans. Now we got nothing.”


 

March 9, 2007

Ending the Credit Card Hell

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Uncategorized — Alexandra @ 5:54 pm

I have had five credit cards since I filed bankruptcy in 2000. The sad tragedy is the fact that I found myself back in the world of debt again but this time I am determined to get out.

As of this past Monday, I am no longer in hell with Ten Dollar Payday Loan. So I am taking the money that I have paid them each month and using it to eliminate the credit card debt have incurred for the past year.

When I got a credit card, I knew that I was going to do the right thing and not act a fool.

. I made the mistake of realizing that I had a problem before it spiraled out of control. Suddenly, I had five credit cards with high interest rates and no way of paying them off. So I have done what I have done with the PDL’s and place them in Town and Country Acceptance. But I am determined to be rid of them once I am through with both Cash Central and Cashnetusa next month.

 

Can you believe I will be through with two more PDL’s by next month? It has been such a blessing to be done with PDLs. I will be done with those two by the next month and be done with the ones in a few months. I can’t believe that time has flown by so fast and I am no longer in debt as I once was.

 

I am able to buy shoes and clothes. I am able to buy purses and groceries. I am able to work hard on my weight loss without having to worry about the bills everyday. So I placed my credit cards in the consolidation program and I plan on paying them as much as I can each month until they are paid in full.

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