Archive for February 2006

Quick Cash joints are HORRIBLE RIP-OFFS!

I am VERY UNHAPPY with quick cash and title loan places. They offer quick cash … for a fee … for a VERY LARGE fee. Don’t believe me? Do what I did. Go to the web sites of these establishments.

One you can try is Type in $500 for the state of Indiana, SC, or TN and 30 days for the loan. What is the interest charge on this loan? $107.15!!!! That is a 21.43% return on that money – IN ONE MONTH! I do, however, credit the PayDayOK folks for putting a “How to get out of debt” link on their website.

At the fees are even higher! For $500 for 21 days, the fee is $139.65!!!! That is a 27.93% return on that money – IN ONLY 21 DAYS!!! By the way, to get to the fee schedule they require you to click a link named “Our low fees”. Outrageous! Here is the statement (word-for-word) under the “disclosures” section of the My Cash Now web site.

“LOAN AMOUNTS AND FEES. Mycashnow.comTM currently provides loans ranging from $100.00 to $1500.00. The finance charge for these loans is based on 485.450 percent APR and the number of days of the loan. See fees for a complete breakdown of amounts and charges for various length loans.”

Recently I was in South Carolina, and I saw a quick cash place with the name “CheckMate”. That is about right. Once you start utilizing this type of place for loans, they have you in checkmate. You will not be able to get out of it.

On that one street in a less than 3 mile section of town, I saw at least 10 quick cash establishments. Terrible. I did not see even ONE establishment dedicated to getting people out of that mess.

I could go on forever about this, but I will finish with this outrageous story from this link

CHECK INTO CASH, INC., with it Corporate Offices in Cleveland, TN, was asked by the Governor to participate in the issue and has a full page ad, plus a feature in the Tennessee Success Story. On April 27, Allan Jones , Founder, Chairman and CEO of Check into Cash, Inc. flew to Nashville for a luncheon hosted by FORTUNE and the State of Tennessee . He and other CEOS across Tennessee joined the Governor for lunch and received special recognition for their support of Tennessee ‘s economic development over the years. He joined other Tennessee CEOs representing such companies as Federal Express, Bridgestone, Toyota, Wilson Publishing, Hospital Corporation of America, Sea Ray Boats, A.O. Smith Water Products, University of Memphis, King Pharmaceutical, UnumProvident, Blue Cross-Blue Shield of Tennessee, to name only a few,

I can’t tell you how much I disagree with the statement that Check Into Cash has helped Tennessee’s economic development. It has helped to enable broke people to become even more poor, it has charged them incredible amounts of unfair interest and fees, and then it is proclaimed that they are “helping” people. Give me a break.

I am passionate about helping …

My life’s passion statement is to help people accomplish far more than they ever thought was possible. One key way that I am seeking to accomplish this is by teaching people about personal financial management. I have realized that if I can help people with their financial situation, then they will be better able to focus on achieving their life’s passion.

Example 1: I have this friend, Perry Noble, who is passionate about leading people to Jesus Christ. He is passionate about helping people to intensely focus on doing more than just sit on a church pew – to get up and DO SOMETHING! If he were worried about where the money for the next house payment was going to come from, would he be as effective at accomplishing his life’s passion?

Example 2: I have this other friend, Ken Wilson, who is passionate about technology, graphic design, and motion graphics. He is passionate about helping people learn about technology and utlizing it in a creative, mind-stimulating way. If he were constantly worried about the creditors calling, do you think he would be at his creative best?

Example 3: I have myself. I am passionate about helping others accomplish more than they ever thought was possible. If I were worried every single day about how I would pay the doctor bills, I believe that I would not be as effective at accomplishing my life’s passion!

What is your life’s passion? Is your financial situation stopping you from focusing 100% on it? What do you need help with most?

What will you say in 20 years?

Today, I mark 20 years since I learned about debt and its impact on my ability to achieve financial freedom. It was 20 years ago that I learned that if I had debt, it would enslave me to the lender. I learned that the interest I paid on debt would help the bank build a nice new building downtown. I learned that debt would lead to added stress in my life. Debt would cause tremendous strain on my marriage. It would also cause me to have my reputation stained when I lost my job and could no longer pay my debts. Debt would make me lose the ability to give to worthy causes or help the poor. Debt would limit my ability to assist my children through college. Debt would make me lose sleep at nights. Debt would force me to work extra hours and additional jobs just to keep current on payments. As a result of working the extra hours and additional jobs, debt would wrench the additional income from my family’s hands. I also learned that unexpected expenses would arrive and that if I had not saved money, debt would be available to handle the emergency. Debt would cost me the ability to do exactly what I am made to do since it would not produce a large enough income to service the debt. It was 20 years ago that I learned that debt is dumb. It was at that time that I learned that I needed a plan to become and stay debt-free.

Today, I am broke. I still have debt. Even after knowing the truths about debt FOR TWENTY YEARS!!! Even after seeing its awful consequences on friends and families. Even after knowing that I really should do something about this debt problem. If only I had taken the time to plan. If only I had gotten on the same page with my wife and budgeted. If only we would have told ourselves “NO!” to the gadgets that we paid top dollar for, but sold in a garage sale for $4 total last weekend.

Signed – The Average American

What you don’t know DOES harm you!

Budgeting is easy. Three years ago, I would never have written that statement, but today I can passionately state that budgeting is easy.

Here is a key fact to remember. Budgets do not require calculus, differential equations, geometry, physics, or trigonometry. Budgets do not even require division or multiplication. Budgets really only utilize addition and subtraction. Think about it. If you can punch numbers into a calculator, you can complete a real, workable budget. It is a simple equation:


It is just that easy. If you don’t know this equation, it WILL harm your finances. It can lead to devastating effects on your marriage. It can lead to strained family relationships. It can create worry and stress. I know. I have been there. I have seen it with my own eyes. I have stared poverty in the eyes. Poverty that was the direct result of not understanding this equation. Poverty that should not have happened. Poverty that is impacting the family in a horrible way. It is what they DID NOT KNOW that is harming them. They routinely spent more than they made. They were paying more money in late fees and overdraft charges than their house payment. What they DID NOT KNOW is harming them.

You might be saying, “I don’t need a budget.” I will tell you that “I was broke … Now, I’m not!” It was through the introduction of a monthly budget that we were able to make our family’s finances work. Now, we are able to give more than I ever thought possible, save more than I ever thought possible, and we are able to utilize our income to do something besides PAY BILLS!!!

I have a question. When you were growing up, was it your dream to owe Capital One? Target? Kohls? Belk? Disney? Countrywide? Wells Fargo? Put a stop to this madness. Get a budget.

It is my goal to get every person on this planet to PLAN their finances through the use of a monthly budget. If you want to know how to budget but can’t seem to get started, e-mail me at