Debt Warnings

The new iPhone is out and people are rushing, at a slower pace, yet again to get one. While they may be on the bleeding edge of technology, I wonder how many users of the iPhone can really justify the huge bills they can generate?

And you know what will come after this generation of iPhone? That’s right, the next one and that one will yet again be faster, smarter and have more storage.

Before you spring for the new iPhone and big bills that can come with it, ask yourself just one simple question, “Do I really need it?” The right answer to that question can save you a bundle of money.

My brother and sister squirrels in Sweeden with mobile phones are getting new types of SMS or text messages that are landing them in debt.

Apparently these loans by cell phone take about 15 minutes for approval and the deposit of €300 in your bank account.

Surprise, surprise, loads of those loans are in collections. It’s estimated that the debt collectors in Sweden are hunting down about 36% of the people that took out these SMS loans via their mobile phones.

The target group for these loans are potential borrowers between 18 to 25 and if the loan isn’t repaid in 30 days, it continues to rollover and grow interest like a squirrel tail when I spot a fox. Boing!

Let’s not get ahed of ourselves here. This isn’t anything but your run of the mill cash advance loan or payday loan technique, but through your phone.

No matter how much you bitch and complain about these types of loans, there can be no doubt at the speed that someone will push the # key on their phone to have €300 deposited into their bank account in 15 minutes so they can go enjoy the weekend.

From a consumer point of view, this sucks. From a lender point of view, it’s brilliant.

For more information, visit physorg.

For years banks have lied and hidden the reality of debit cards from you. What I’m about to tell you is going to sound counter-intuitive from everything you’ve been taught and believe. Here it is. Don’t use a debit card. It’s not smart financial management.

By now you’re probably thinking that I’ve lost my mind but before you judge me, do some homework. What you will find is that when using a debit card a thief has easier access to steal your money, there is a greater chance of you having your bank account drained, you have a much higher chance of incurring bank fees and overdraft charges due to point of sale mistakes, and extra money in your account can be placed off limits for days while a merchant releases or processes an authorization for a transaction.

Now, if getting smart about debit cards by reading this site doesn’t make you think, then explain away why the federal consumer protection laws are significantly different between credit and debit cards? A credit card gives you much more consumer protection and safety but the banks never tell you that. Nor does your bank tell you that they make far more on debit card transaction fees than on a credit card transaction.

People say they don’t want to use a credit card because they want to avoid debt. Well just pay the bill off in full each month or come home from shopping and send a payment off to the card. It’s the same result, you are using a financial transaction tool to make the purchase without any residual debt.

When a crook gets your credit card information you don’t have just a few days to spot the problem, the money does not come out of your checking account, you won’t incur overdraft fees from P.O.S. mistake, you’ll have many more legal protections and the credit card company staff will help you fight your battle.

Don’t laugh this off or call me crazy. Research this for yourself and see what you think.