Love watching courtTV and other true crime shows? Why not get paid for your entertainment?
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
Power bill-saving moves, all under $30
- Create a schedule for your appliances or an auto-off timer with a pair of these smart plugs, on sale for $14. Bonus: Enable the “Away mode” for that hall lamp to fool bad guys while you’re on vacation.
- These LED bulbs are super versatile and dimmable with five options for brightness. Get four for under $10.
- Install a door sweep if you have gaps between areas where you’re air conditioning and not. This one is a steal at $9.93.
- This rechargeable table fan can move around the house, keeping your cooling bill down. A few colors are available too, at $12.
- Blackout curtains can save you money by keeping that sunny room cooler. They come in tons of colors and are on sale for $18.
We may receive a commission when you buy through our links, but our reporting and recommendations are always independent and objective.
Free money waiting for you: You put money in and you should get money out. The National Registry of Unclaimed Retirement Benefits helps you find money being held from prior employers.
How to maximize your Airbnb profits
🚨 $400K MIA: A Silicon Valley woman nearly lost her down payment when a scammer infiltrated the email thread between her and her real estate broker. They convinced her to wire the money to a new account. It took banks five months to get it back. If you’re buying, talk through the wire instructions upfront with your broker, and when it’s time to send, call to confirm the details.
$15 billion investment
From Mercedes, with a chunk of that going toward “high-tech combustion technology.” Yep, gas cars. Audi, Porsche and Toyota are hitting the brakes (sorry) on EVs, too. They’re not stopping development, though — just pouring less money into it.
Is using a VPN unethical?
One of my readers was shocked I gave this as an idea to save some money renting a car abroad. What do you think?
💸 This isn’t tech, but it is free money: Chase and Wells Fargo want your business so badly, they’ll give you $300 to open a new checking account. At Bank of America, it’s $200. The catch: You have to set up direct deposit. Check with your local branch for all the details.
Stay far, far away: Scammers use crypto ATMs to defraud U.S. victims out of millions every year. They’re less regulated and let you send money overseas instantaneously. A 77-year-old woman just got scammed out of $9,000. Once her money left the country, she was SOL. Listen up: No legitimate entity will ever ask you to send money in crypto or from an ATM.
An 82-year-old woman almost lost $3 million in a gold bar scam: First, she was swindled out of nearly $1 million of her life savings. A pop-up ad on her PC scared her into calling a fake federal agent. The “agent” said her money was in danger and would only be safe if she converted it to gold. Good news: Just as she was ready to hand over another $2 million in gold bars, they caught the 19-year-old scum behind this.
Hot take: Compressed air isn’t worth the money. The cans run out so fast! I like this high-powered blower instead.
We may receive a commission when you buy through our links, but our reporting and recommendations are always independent and objective.
Don't fall for political donation fraud
As election day approaches, scammers are coming up with new ways to steal your money. Here’s what you need to watch out for.
Is Steam's Banana Game worth it?
There is a new simple game out there where you can make real money by just clicking on a banana, but I wouldn’t go bananas about it just yet.
What I'm watching this weekend
The movie ‘Thelma’ follows a 93-year-old on a mission to get back $10,000 from a phone scammer. The scam is 100% real. A crook used an AI voice clone to pose as Thelma’s grandson in jail. Luckily, the real Thelma was smart enough to call her kids, who stopped her from sending the money.
Want to make money podcasting?
Trying to start a podcast? Kim chats with the guy who started the very first podcast about podcasts. Now he’s helping creators grow their shows and make money.
Have a YouTube channel? Check out the awesome eraser tool. It uses AI to detect and remove copyrighted music without affecting dialogue or sound effects. It’s not perfect (the tool might struggle if the song is “hard” to remove), but it beats losing money because your video got flagged.
Want to grow your small biz on social? Instagram Reels and YouTube Shorts are now better than TikTok (paywall link) for growing your audience. In 2023, brands spent 700% more on YouTube Shorts creator partnerships than the year before. Gotta go where the money is!
The phony invoice scam
Think you’ve paid a trusted vendor? Make sure you haven’t handed over money to a scammer first. Here’s how to spot and avoid phony invoice scams.
Things NOT to buy on FB Marketplace
I love saving money as much as the next person, and buying big-ticket items used is a good way to do it. Facebook Marketplace is a super easy way to score deals near you … but there are certain things you should stay far away from.