Can You Lose Money With A 50% Interest Rate?

    October 25th, 2014

    The answer is yes. I was recently writing an article on merchant cash advances and stumbled across a surprising piece of information. A company which loans money to small businesses at an interest rate of more than 50% was losing money. A number of companies have entered the alternative lending space. Banks have been decreasing their lending to small business for several decades providing an opportunity for new players to fill a vital need for capital.

    This article will deal with the question of how a company charging interest rates that are far beyond the maximum interest rates on consumer credit cards can lose money.

    What could potentially cause a company to lose money on these...

    Student debt avoidence strategies

    October 25th, 2014

    BY CHRISTI KHALAF, Tyler Area Business Education Council

     

    With all the recent hype about how college students are paying more, taking on more debt and accepting lower paying jobs upon graduation, how can it possibly be true that college is more important than ever? Considering the statistics that I have shared in previous columns — that by 2025, 65 percent of US jobs will require some type of post secondary credential — the members of the Business Education Council, at a recent meeting, suggested that I focus a column on student debt and the return on investment of a college education.

    I did some research and consulted experts at two of our local...

    Finance Minister Mathias Cormann defends calling Bill Shorten an ‘economic …

    October 24th, 2014

    Finance Minister Mathias Cormann has defended himself for calling Opposition Leader Bill Shorten an economic girlie-man, after receiving widespread criticism for the sexist nature of the comment.

    Senator Cormann used the term, first used by former California governor Arnold Schwarzenegger, when rejecting Mr Shortens claim that Labor was more likely to deliver a budget surplus than the Coalition.

    The problem that the Labor Party has today is that Bill Shorten is an economic girlie man, he said in an interview with Sky News on Saturday.

    He doesnt have what it takes to repair the budget mess that they have left behind.

    On Sunday the Finance Minister defended himself,...

    5 surprising times your credit matters

    October 24th, 2014

    I DONT CARE what my lsquo;credit score is, one of our readers wrote in a recent comment on the Credit.com blog. I am debt free except for my house. I use credit cards for everything possible and pay them off in full every month.

    Is good credit really that important? Some people obviously dont think so. But maybe it should be. Even if you dont plan to borrow, there are times when good credit can be a time-saver, money-saver or even a life-saver. Here are five surprising times when your credit matters.

    1. Getting Cable Hooked Up

    Planning on switching cable providers? Or getting service for the first time? In most cases you can expect a credit check when you get cable. Similarly,...

    Your Car Won’t Start. Did You Make The Loan Payment?

    October 24th, 2014

    For borrowers in default, the repo man is no longer the one to fear — its Big Brother. Growing numbers of lenders are getting tech savvy, remotely disabling debtors cars and tracking customer data to ensure timely payment of subprime auto loans. The practice has created problems for consumers and raises privacy concerns.

    Lenders use the starter interrupt device, which has been installed in about 2 million vehicles, according to The New York Times, to deactivate car ignitions remotely if borrowers are late on payments. Lenders can also track cars movements using the GPS on the device, and the device emits beeps when a payment due date is approaching.

    The use of the devices...

    Ron Wise trial is Wednesday; arson charge dropped

    October 24th, 2014

    Charges of first-degree arson and two counts of fraud in obtaining credit were dropped against Ronald Wise, 50, Baxter. A jury trial is scheduled for Wednesday, Oct. 22 in Aitkin County court for the remaining 10 counts – fraud in obtaining credit and eight counts of filing false or fraudulent tax returns. 

    Wise, owner of the former Carlsona Beach Supper Club on Mille Lacs Lake, was charged June 23, 2010 with felony first-degree arson of the supper club, four counts of felony fraud in obtaining credit and four counts of felony filing a false tax return. 

    Price positions self as middle choice in District 27A race

    October 23rd, 2014

    Protecting senior citizens and educating youth.

    Tom Price

    Those are the top priorities for Tom Price, the Independence Party candidate for the District 27A House of Representatives seat.

    Price, 56, lives between Alden and Freeborn in Carlston Township, and will face off against incumbent Rep. Shannon Savick, DFL-Wells, and Peggy Bennett, R-Albert Lea, in the Nov. 4 general election.

    A refrigeration mechanic for the Minnesota Department of Administration, Price presently works at the Minnesota Capitol.

    He is a licensed elementary and middle school...

    Black Money Study Reports Yet to be Accepted: Finance Ministry

    October 23rd, 2014

    NEW DELHI: The Finance Ministry is yet to accept two of the three reports submitted to it on the assessment of black money in India and abroad which were commissioned by the UPA government three years ago.        

    The studies were conducted by the Delhi-based National Institute of Public Finance and Policy (NIPFP) and National Council of Applied Economic Research (NCAER), and National Institute of Financial Management (NIFM) at Faridabad.          

    Report from one institute has been received and accepted and reports from the remaining two institutes have been received but yet to be accepted by the government so far, the Finance Ministry said in reply to an RTI query....

    Morning News and Stuff

    October 23rd, 2014

    So, I skipped writing the morning news yesterday to hang out at City Council half the day. I know, you’re jealous. Let’s catch up.

    The city should declare Mahogany’s, the former restaurant at The Banks, in default on its $300,000 loan, Councilman Kevin Flynn said during the Budget and Finance Committee meeting yesterday. After coming to The Banks two years ago, restaurant owner Liz Rogers fell behind on rent, loan payments and state sales taxes, eventually shuttering Mahogany’s last month. Rogers has tried to convince the city to reduce the amount she owes, and even threatened to sue, but the terms of her loan mean she may be on the hook for more than just the $300,000....

    Funding your dreams

    October 23rd, 2014

    Former President APJ.Abdul Kalam famously said, A dream is not that which you see while sleeping, it is something that does not let you sleep. Everyone has dreams. But how does one bear the cost of the education that will help him/her realise their dreams? Several students aspire to study abroad or pursue specialised courses but hold themselves back because of financial constraints. This is where an education loan can help. Taking a loan would ensure that you do not put the entire financial burden on your parents or depend on getting a scholarship.

    The process

    The cost of education has risen substantially over the years. The college fee, which usually runs into lakhs, depends on the course...