Who We Are
The BlueCollarDollar was designed as personal finance center where you will find the complicated world of investing and financial planning explained. We take a common sense approach to the money you earn, your investments (mutual funds, bonds, mortgages), retirement planning (IRAs, 401(k)s, etc.), insurance, mortgages, and debt. We want you to have a financially stable retirement, that is both comfortable and healthy.

Money Focus
Mutual Funds

Equity

Bonds
Insurance

Guide

Life

Health

Auto

Home
Mortgages

Buyer's Guide
Taxes

Guide with Calculators
Step by Step
Hot Topics
Contact the Editor

---

Featured Site

TradersDigest
AfterHourTrades.com, Inc.
Featured Columnist:

Tax Mama

The Blue Money Report

---

 

---

---

All content is © copyright (1998-2004)
BonPaulProductions (all rights reserved)

---

Refund Loans
The vast majority of people who qualify for a refund this year are getting one not because of changes in the tax policy. They may be receiving more as a result, but they are still, with full knowledge, having too much deducted from their daily wage providing the erroneous illusion of a windfall come tax time.

And still more of these people are opting for a loan to get that money quicker. Think twice. This loans come with incredible interest rates that would make any loan shark envious. Companies like H&R Block offer these loans with the same straight faced logic as your local Mafioso might.

Finance charges for these refund loans range from $5 to $75 for short term refunds of $200 on up to $7,000. When calculated on an annual percentage basis, the true rate of the loan, not counting the finance charge of $25 or so, the borrower would pay upwards of 120% in interest.

To combat this temptation, get to your human resource office and make the appropriate changes in your deductions. It should reflect the exact amount you are estimated to owe, not more nor less. That money would be put to better use as part of a retirement plan or even keeping you from acquiring debt due to cash shortfalls. If you have a refund due this year, plan on investing it in your future not on a spending spree.