Springboard Advises Consumers to Beware Refund Anticipation Loans this Tax Season
It's that time of year for consumers to file their taxes and many may decide to go to a tax preparing company in order to do so.
However, Springboard Non-Profit Consumer Credit Management advises consumers to avoid the hard sell by tax preparing companies that try to persuade you to receive a Refund Anticipation Loan (RAL). RALs may seem like a fast refund ("Fast Cash Refunds" or "Instant Refunds"), but "RALs are similar to payday loans - they are very expensive short term loans with high fees that equate to astronomical interest rates," said Dianne Wilkman, President/CEO of Springboard.
Despite their low "default" rate, RALs are high cost loans that are repaid by your tax refund from the Internal Revenue Service (IRS).
For example, with a refund of $2,000, a RAL consumer might pay a $75 loan fee, a $40 electronic filing fee, a $100 tax preparation fee and possibly even a $42 check cashing fee.
The grand total is $257, which is approximately 13% of this refund.
The short term loans represent no risk to the issuer, since they are secured by the tax refund.
Some tax preparers target working families in low income neighborhoods that can claim the Earned Income Tax Credit (EITC).
The EITC is meant to increase working families' incomes.
To avoid applying for a RAL, Springboard encourages consumers to consider the following:?Electronic filing - File online and avoid the traditional paper filing through the mail.
If consumers "e-file" they can avoid unnecessary delays of their tax refunds in as little as 10 days versus the six weeks for returns filed by mail.-more-?Educate yourself - Take control of your taxes and get tax smart.
To help navigate new tax law changes and provide new information and resources to maximize savings, Springboard recommends that consumers clip tax tips from newspapers & magazines, obtain a tax preparation checklist and learn how to organize and file their taxes.
The internet has many excellent resources. ?Utilize tax software - Look into tax preparation software, such as TurboTax, to help identify deductions you may have not known you qualify for and the program does the calculations for you.
Tax preparation software can make doing your taxes faster, easier and more convenient.????
?Use your refund wisely - Once you get your refund put it to good use.
Pay off credit cards or build up an emergency stash. Do not give in to the impulse to pay for vacations, home entertainment systems or high priced appliances.?Best tip of all: don't get a refund! That's right, reduce your withholding and keep your money throughout the year, paying off more debt or putting it into savings. Don't let them get it in the first place.
Springboard offers low cost tax prep services and is an approved e-filer with the IRS. Call Springboard Nonprofit Consumer Credit Management at 1-800-WISE PLAN (1-800-974-3752) for more information regarding safe tax filing and also to safely prepare your taxes.About Springboard Nonprofit Consumer Credit ManagementSpringboard, a nonprofit credit counseling and education organization founded in 1974, offers assistance with money management and budgeting through confidential counseling, debt management and education programs for financially troubled consumers.
Springboard is accredited by the Council on Accreditation of Services for Families and Children, signifying high standards for agency governance, fiscal integrity, counselor certification and service delivery policies that ensure low-cost confidential services performed in an ethical manner. Springboard is a member of the National Foundation for Credit Counseling and the Association of Independent Consumer Credit Counseling Agencies. Springboard has counseling locations throughout Southern California offering face-to-face, online and nationwide phone counseling services. For more information on Springboard, call 1-800-947-3752 ext. 702 or visit their web site at www.credit.org..
Opt out of credit cards offers to protect your privacy
Your credit reports are being screened without your knowledge or permission.The purpose of this screening is to market products and services to you through mass mailings (junk mail)! If you have received offers for "preapproved" credit cards, loans, and accounts, it is likely that this preapproval was obtainedby screening your credit reports.You have the right to prohibit information contained in your credit report from being used in any transaction that is not initiated by you. You can protect your privacyand stem the flow of junk mail to your mailbox by opting out of these screenings. Call the automated opt-out number for the major credit reporting agencies (Experian, Equifax, Trans Union) 1-888-567-8688.You will be asked to provide certain identifying information that will be used to exclude you from this screening for preapproved credit offers. Opting out of these preapproved offers does not limit your ability to apply for credit should you choose to do so; it simply restricts dissemination...
Opt out of credit cards offers to protect your privacy
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Cheap Payday Loans are Available For Bad Credit Borrowers
Are you short of cash at the middle of the month?
Hesitating to think about payday loan due to your bad credit score?
Let me assure that your hesitation is completely pointless, as your bad credit score does not hinder you to avail a payday loan.
It's true that due to bad credit score borrowers generally face some harassing situation at the time of availing loans. But bad credit payday loans are available in loan market to solve bad credit borrowers' cash crisis.
Normally, the availability of bad credit payday loans is not so tough. One can get easy approval for these loans from almost all borrowers. At the time of providing payday loans, many loan lending companies do not check whether the borrower has bad credit score or not. But, there are some pre-requisite criteria that a borrower has to meet to avail a bad credit payday loan.
These are like; the borrower should be 18 year or above, he should be employed...
Cheap Payday Loans are Available For Bad Credit Borrowers
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Grameen Foundation Guarantee Engineers $1.5 Million in Financing For ProMujer Bolivia
Washington, D.C., May 18, 2006Grameen Foundation, a leading global microfinance organization, today announced two loan guarantees that secure US$1.5 million in funding for Pro Mujer Bolivia (Pro Mujer), a Grameen Foundation partner and one of the fastest growing microfinance institutions (MFIs) in Latin America. The deals with Banco de Credito de Bolivia and Banco Bisa, both Bolivian-based commercial banks, were facilitated by guarantees totaling US$750,000, and will fuel ProMujers plans to expand their unique model of one-stop financial and healthcare services.
Unlike most MFIs, ProMujer provides all of its services at one location.
In addition to providing credit and financial services to clients, it offers direct basic primary health care at its centers, as well as required vaccinations for children and Pap tests for early cancer detection. In Bolivia, which is considered one of the most advanced microfinance markets globally, almost 70 percent of microenterprises...
Loans > Grameen Foundation Guarantee Engineers $1.5 Million in Financing For ProMujer Bolivia
Financing a New or Used Car
If you decide to finance your new or used car, be aware that the financing obtained by the dealer, even if the dealer contacts lenders on your behalf, may not be the best deal you can get. Contact lenders directly. Compare the financing they offer you with the financing the dealer offers you. Because offers vary, shop around for the best deal, comparing the annual percentage rate (APR) and the length of the loan. When negotiating to finance a car, be wary of focusing only on the monthly payment.
The total amount you will pay depends on the price of the car you negotiate, the APR, and the length of the loan. Sometimes, dealers offer very low financing rates for specific cars or models, but may not be willing to negotiate on the price of these cars. To qualify for the special rates, you may be required to make a large down payment. With these conditions, you may find that it's sometimes more affordable to pay higher financing charges on a car that is lower in price or to buy a car...
Financing a New or Used Car
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