February 12, 2008

Loans on rebate?

I was talking to some of my peers at work today as we waited for a meeting to start. The rebate/stimulus package was brought up and of course someone made the comment, "I could use that money now." I knew they should be getting $1,200.00 back and I made an offer to them. "I'll tell you what. I'll give you $900.00 tomorrow and you can give me the $1,200.00 check when you get it." We all had a chuckle, but then it made me think.

When is someone legitimately going to do something like this?

Think about it. All of the tax places offer an instant rebate or refund anticipation loan. Basically they give you the money for your anticipated refund right there, minus some fees, charges and interest. Plus you have payday advance loans, car title loans, etc. etc. etc. You have large financial companies that advertise that if you have a structured annuity, won the lottery, have payments from a court case coming to you, they will give you one large lump sum today, and keep the rest. If they can do all of that, when is someone going to legitimately say, "Getting a rebate? Need the money now? Come see us at Givenudashaft and we'll give you your money today*" (*in fine print: minus a 20% fee)

The sad thing is that I can actually see people doing this just so that can have their money NOW. What bothers me the most is that I know a lot of people that fall for all of the above. Okay some might justify the refund anticipation loans because it's only $50.00 out of $3,000.00 and they get the money today. Yea... but basically if you were patient and waited for the money you'd have an extra $50.00 or however much you might get. Remember, it's already your money, you just gave away $50.00 to get it back today instead of in three weeks. That's like paying your employer to get your paycheck.

There are people that work for me that use the payday loan places all the time. I could see them forking over 20% of the anticipated rebate just so they could get the money today. It just amazes me how many people can be that financially irresponsible with their money.

I wonder how long before someone does start this scam. Hell it may have started already.

Of course I still think this whole rebate is a really bad idea that we all going to be paying for over the next 25 years. Sure I'm going to take the money, only a fool would not. I'd just rather they not do it in general. I'd rather they save the money, decrease taxes, remove federal regulations and restrictions and let the free market fix itself. If they are that worried about it, start putting more tariffs on foreign products coming to the US so that products actually owned by American based companies have a fighting chance. It keeps the money in America, not in China.

Roughly forty percent of the money we are borrowing to make this rebate happen is coming from China so that the majority of people can go out and buy a big ticket electronic item made in China. Who's economy are we trying to stimulate?

Posted by Contagion in Rants and Raves at February 12, 2008 05:49 PM | TrackBack

Well for me I will be planning on keeping that hard earned monies local. I will throw all a party at Fritz's. Except for you, cause I know that you can drink over your weight in drink!

Posted by: Bruce at February 12, 2008 07:00 PM

The only problem with imposing tariffs on incoming goods, is that when we put tariffs on incoming goods, the countries those goods come from tariff American products. Often incoming agricultural products (grain, meat, cotton). It doesn't matter to those countries that there is a huge trade deficit.

I am going to use my rebate, along with my refund, for a new custom swamped barreled flintlock rifle.

Posted by: Petey at February 12, 2008 08:26 PM

I'm going to use my rebate for some hemp sandals...

Posted by: That 1 Guy at February 12, 2008 09:29 PM

Petey: Look at the tariff ratio. We pay tariffs when we ship to most, if not all, asian countries. They don't pay tariffs to us when they ship into the US. IF they are already extorting us to trade with them, then lets balance it out.

Posted by: Contagion at February 13, 2008 08:44 AM

Dude, you are so living under a rock.

Already seen the commercials on TV here for loans until rebate checks come.

Oh and those tax loan's, heard some senators grumbling that they target minorities and charge to much in interest and they shouldn' be allowed. Well damn senator, same as mortagages, nobody is forcing them to take them out.

We are actually getting a rebate check (ya, we were shocked too) but will just be handing it to our financial planner to be put into our retirement fund.

Posted by: Quality Weenie at February 13, 2008 09:11 AM

I agree with you. It needs to be balanced. It doesn't make sense for us to allow all this goods in cheaply, when our stuff gets tariffed right out of their market. It needs balance, but when we try to create balance the other countries just raise the stakes.

Why would they give up their sweetheart deal? From out perspective, it suck major monkey balls. From their perspective, they get to kick the major monkey balls.

Posted by: Petey at February 13, 2008 01:44 PM