Could you imagine being one of these athletes and still needing a side hustle to pay the bills?
The fresh face of payday loans: Cash-advance apps
You get paid next week, but your credit card bill is due this week, and, oops, so is that new car payment. You’re only a few hundred bucks short — you just need a way to bridge the gap.
Unfortunately for you, there’s an app for that. Actually, there are dozens. They’re called cash-advance apps. And most things about them tick me off.
Their names make it sound like you’re borrowing from a friend, like “Dave,” “Albert,” or “Brigit,” or like they’re giving you a leg up, like “Empower.” But trust me, there’s nothing empowering about them.
I dug up the dirt they don’t want you to know about and how to avoid getting caught up in their scheme.
What has two thumbs and owes 376% interest?
You, if you fall for this BS. These apps are just big yellow Payday Loan signs with a fresh coat of paint. They target folks living paycheck to paycheck, and once you’re in their clutches, it’s nearly impossible to get out.
Get this: The average APR on an advance from these apps is 376% — pretty much identical to a typical payday loan’s 400% markup. And that’s if you manage to repay it in one to two weeks.
And you probably won’t. Studies show that 75% of people take out another advance the same day or day after making a repayment. And if you’re using one, there’s a good chance you’ll get hooked into others, too.
On top of ludicrous fees …
They ask you to “tip” for the service. Some apps even try to guilt you, saying they’re helping “vulnerable people” with the money. Sure, they’re not gonna break your kneecaps or repo your car, but these companies are still laughing all the way to your bank.
One home health aide in Texas pays a day-and-a-half of work per month in fees. She didn’t know about the free option to transfer money immediately instead of one to three days — these apps make it hard to find on purpose.
My (free) tips to avoid the trap
Use the NewsBreak app? Delete it. Here’s why
My husband, Barry, is a total news junkie. He has all the major news apps on his phone. That’s why this story stopped me in my tracks. NewsBreak, the most downloaded news app in the U.S., with more than 50 million readers per month, has strong ties to Communist China.
Why cutting the cable was all BS
What started as a way to dodge high cable bills has turned into a tangled mess of streaming subscriptions, each with its own costs.
30 seconds is all it takes: If you’re struggling, stressed out or worried about money, this is your sign to do something about it today. Get a free debt analysis with a plan to pay down your credit cards, personal loans, collections or medical bills.
Do you know what you spend every year on your phone, TV and internet bills? If not, put on your guessing hat. How much does the average American spend annually on all three services combined? Is it … A.) $1,500, B.) $2,500, C.) $3,000 or D.) $4,000?
Easy way to see if someone is stealing your Wi-Fi
Having slow internet may occur more than you’d like. You may see a frozen screen when trying to binge-watch your favorite TV show. You might get booted out when paying bills. Tap or click here to get the fastest internet speeds in your area.
Money tip: 5 bills you should never put on autopay
It’s not always possible to buy something you need (or want) outright. If the price is high, you can pay in installments, which may or may not involve a down payment. This payment plan is typical for large purchases like houses and cars.
It twerks: People are turning to TikTok to pay off medical bills. Some creators can earn cash from videos over a minute long, and viewers only have to interact once. A mom turned a live dance party with her kids into $2,500 to pay off her 3-year-old’s medical bills. It works!
⛑️ Big Tech is fighting the Kids Online Safety Act: It passed the Senate with overwhelming bipartisan support in July but has stalled in the House. The bill holds tech companies (gifted paywall link, WSJ) accountable for algorithms and designs contributing to mental health issues, addiction, bullying and exploitation. Tech giants Meta and Alphabet have poured nearly $90 million into lobbying efforts. Funny, Zuck won’t let his kids have social media accounts.
🏠 Buying or selling property? Scammers are targeting you. A sharp title company owner just stopped a fraudulent sale. The first clue: The seller’s driver’s license was from West Virginia, but the property tax bills had been sent to the Bahamas since 1978. They asked the seller to video chat to confirm, and the seller, a woman who said she was deaf, turned out to be a looped AI video. Here’s what the faker looked like.
$351,178 raised
For a 90-year-old veteran caring for his wife with dementia. A woman started the GoFundMe campaign after she saw Air Force vet Donald attempting to pawn jewelry to catch up on bills. I just love stories like this.
1,600% increase
In power costs in Texas. Things are bigger in Texas, but that’s nuts. Hotter temperatures are sending energy prices soaring (paywall link). Here’s how to lower your bills.
Slap on the wrist: Verizon, AT&T and T‑Mobile will pay $10.22 million to a group of states to settle claims of false advertising. Their ads promised unlimited data plans and free phones, but guess what? Restrictions applied, conditions had to be met, and hidden fees lurked in the fine print. Check your bills.
Phone(y) bills: If you use Verizon, watch out for phony invoice emails from “33mail.com.” They link you to a fake Office 365 sign-in page that could allow them to hack your account. Don’t click that link. If you get an email that looks “phishy” or has mismatched sender names and addresses, mark it as spam ASAP.
Just days away: The House just passed the TikTok sell-or-ban bill again, but with a twist: It was bundled with urgent foreign aid bills supporting Ukraine and Israel, plus humanitarian support for Gaza. Next stop? The Senate, and, if it passes there, to President Biden’s desk for approval.
Stop writing checks
Still paying bills with checks? Here’s why you need to switch over to electronic payments, in one minute.
This woman's home was stolen right from under her - Don't let it happen to you
Your home is likely the largest purchase you’ll ever make. Homeownership is a lifelong commitment between mortgage payments, taxes, insurance, maintenance, renovations, repair, and decorating.
Think about how much email correspondence you get just for your home. Bills and other important documents can get lost in the clutter of your inbox. You can prevent this by creating an email address just for your home. Tap or click here to learn more.
Streaming insider money saving tricks
Want to lower your monthly streaming bills? Listen to this one-minute podcast for my top cheapskate secrets.
Learn more about your ad choices. Visit megaphone.fm/adchoices