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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
The art of the upsell
Did you hear United Airlines is going all-in on a new, premium, expensive business class? Private check-in, a fancy lounge with sit-down dining, nice pajamas and a mattress pad, extra food on the plane, and (my favorite) press a button and someone will whiz over with champagne. Cha‑ching.
Charges you forgot about: Amazon Subscribe & Save is handy when it’s stuff you want and annoying when it’s stuff you just forgot to cancel. From Your Account, select Memberships & Subscriptions or Subscribe & Save Items to see a list of your subscriptions, costs and renewal dates.
💸 Duh, it works: A money-saving strategy is all over TikTok, promising to save you over $5,000 in less than four months. Take 100 envelopes and number them from 1 to 100. Each day, deposit an amount matching the envelope number. Envelope No. 1 gets $1, the one labeled “2” gets $2 and so on. Maybe next, someone will go viral talking about savings accounts! You know, where you put money away with interest.
$300 more revenue
Per month, if you offer extras with your Airbnb. Owners are tacking on things like airport transfers and local tours to boost their Airbnb incomes with almost no overhead. Oh, and be smart with your pricing; folks expect to pay a little more during peak seasons.
5 legit ways to make extra cash on your schedule
If you’re sitting on a pile of cash sipping mai tais in Bora Bora right now, congratulations (and where’s my invite?). For the rest of us, making a little extra money never hurts.
People ask me all the time for an easy way to rake in the dough. Do those exist? Yes and no.
Sick of QuickBooks? There’s a better way!
Stop fighting with spreadsheets and trying to figure out what the heck you did with last year’s inventory list. I have the solution — my sponsor, NetSuite by Oracle.
You get visibility and control of your financials, inventory, HR, planning, budgeting, and more — all from one easy dashboard. Don’t just take my word for it — over 37,000 businesses already use NetSuite.
Get your resume past the bots
Having a hard time finding a job? It might not be your experience level or education. It may be because ATS bots don’t like the words in your resume.
A buck is a buck: If you stream music on Spotify, you’re most likely on the $11.99-a-month plan that includes 15 hours of audiobooks a month, too. Don’t use ‘em? Go into your account and downgrade to “Basic” ($10.99 per month). Hey, it all adds up!
Fake your location to get the lowest prices: A friend of mine in Phoenix booked a rental car in the U.K. It was $955. I told her to try this trick. She used her VPN to change her location to the U.K. and the same car for the same dates was $322. Just another reason why you need ExpressVPN on all your devices. Use this link to get three months free.
Side hustles for 2024
Need some extra cash? I put together a list of online side hustles that actually get you paid.
Getting cash is annoying: Split the check for drinks, a concert, vacation — whatever — through Venmo. Open the Venmo app and add your pals as contacts. Choose Pay/Request at the bottom of the screen. Tap the names of the people you want to split the check with. Enter the amount and click Split. You can customize the amount for each person.
Make bank: Vintage rugs in good condition are big sellers online. Pro tips: List the dimensions, call out imperfections like fraying and staining, and state upfront whether the rug comes from a smoke- or pet-free home. These are key phrases!
Plan for the future: AARP has you covered with its retirement calculator. Answer a few questions to find out how much money you need to live to retire comfortably.
$161 million in bitcoin
Purchased by the state of Wisconsin. It’s the first state to invest in the newly approved bitcoin EFTs. I always say you shouldn’t invest in crypto unless you can afford to lose it. Hope that’s true for the Wisconsin state pension fund.
Amazon’s secret 25% discount: Send your old tech to Amazon through its Trade-in Program, and get a gift card for the value. Bonus: You’ll get an extra 20% off if you’re upgrading to a new Amazon device, like an Echo or Kindle.
If your business accepted Visa and Mastercard between Jan. 1, 2004, and Jan. 25, 2019, you might be eligible for part of a $5.5 billion settlement. It stems from excessive transaction fees, and businesses that have since closed or gone bankrupt can still qualify. File your claim here before May 31. I did.
$16K for a car battery? Only if you drive an EV …
Here’s a shocker you need to know: Replacing the battery in an electric vehicle can set you back up to $50,000. For those of you keeping track at home, that’s more than a brand-new Tesla Model 3. I’m not beating up Tesla. All EV carmakers hope you don’t figure this out.