Funding of working capital – Urabandai SS Mon, 04 Jul 2022 17:08:19 +0000 en-US hourly 1 Funding of working capital – Urabandai SS 32 32 Nearly a Quarter of US Investors Have Used Loans to Buy Crypto Mon, 04 Jul 2022 17:08:19 +0000

A large number of retail investors in the United States took out loans, often at exorbitant interest rates, to buy cryptocurrencies, and more than half of those investors ended up losing money, according to a recent investigation by DebtHammer.

DebtHammer surveyed over 1,500 people in the United States to learn about their crypto investing habits and how they affect the already indebted nation.

Loans for Crypto Investments

Over 21% of crypto investors said they used a loan to pay for their crypto investments, according to the survey.

Personal loans seem to be the most popular choice among investors, as more than 15% said they used one to fund their crypto purchases. Many have also used payday loans, title loans, mortgage refinances, home equity loans, and even leftover student loan funds to acquire crypto.

crypto investors loan
Chart showing the percentage of investors who have used loans to invest in cryptocurrencies (Source: DebtHammer)

About 1 in 10 investors who have used a payday loan have used it to purchase cryptocurrencies. Most borrowed between $500 and $1,000 to invest in crypto, the survey showed. However, DebtHammer researchers noted that these were risky purchases despite the low amount borrowed, as payday loans averaged around 400% APR.

Retail investors who have used loans to purchase crypto have said their purchases have not always been successful. Nearly 19% of respondents said they had trouble paying at least one bill due to their crypto investments, while around 15% said they were worried about eviction, foreclosure or destruction. a car repossession. Payday loan users appeared to have suffered slightly less, with only 12% saying they had trouble paying a bill or worried about evictions, foreclosures or foreclosures.

crypto investors loan
Chart showing the percentage of crypto investors at risk of seizure, eviction, or vehicle repossession due to loans used to purchase cryptocurrency (Source: DebtHammer)

Loans aren’t the only way investors used to buy cryptocurrencies when they ran out of money.

According to the survey, over 35% of respondents said they used a credit card to purchase crypto. While about 20% of them paid it off when the bill was due, 14% said they were paying it back gradually with an introductory offer at 0% APR or full interest.

All the borrowed money went to a handful of cryptocurrencies. The survey showed that more than half (54%) of respondents used borrowed money to buy Bitcoin (BTC). Dogecoin (DOGE) came in second, with nearly 35% of respondents saying they bought the token with loans, while just under 30% said they bought Ethereum (ETH).

crypto investors loan
Chart showing which cryptocurrencies retail investors bought with borrowed money (Source: DebtHammer)

Just under 23% of those who borrowed money to buy cryptocurrency said they did so because crypto prices had fallen sharply. About 15% said they consider cryptocurrencies a good long-term investment, while 17% said crypto prices are “historically low.”

A notable percentage of respondents (18.5%) said they borrowed money to buy cryptocurrency because their credit card company or bank offered them a promotional interest rate of 0%.

However, not everyone who plays wins.

Of those who borrowed money to invest in cryptocurrencies, around 60% lost money. And while more than a third of them lost $1,000 or less, 6% said they lost between $50,000 and $100,000 and 5.5% said they lost more than $100,000.

Investing in cryptocurrencies with borrowed money also does not result in significant gains. The majority, 27%, earned up to $1,000, while only 7.5% earned between $1,000 and $5,000.

crypto investors loan
Chart showing how much money investors have lost or gained investing in cryptocurrencies (Source: DebtHammer)
More UK households are turning to high-cost lenders, charity says | Borrowing & debt Sat, 02 Jul 2022 06:00:00 +0000

Struggling British households are increasingly turning to high-cost lenders as the cost of living crisis prevents them from paying their bills, anti-poverty charities have warned.

It comes as subprime lender Amigo, which agreed to pay compensation to customers sold unaffordable loans, revealed plans to launch using a new brand called RewardRate. She wants to offer a personal loan with an annual interest rate of 49.9% and a guarantor loan at 39.9%.

The high-cost credit industry, which includes home loans, guarantors, and payday loans, lends to people with poor credit ratings who might not be approved by traditional lenders.

The loans have high annual percentage rates, which means people end up paying back a lot more than they borrowed.

Charities expect more people to become dependent on this type of debt, with high-cost borrowers already more likely to be in arrears or struggling to pay essentials.

Rachelle Earwaker, senior economist at the anti-poverty charity Joseph Rowntree Foundation, said more than one in 10 low-income households – a figure of 1.3 million – had ever taken out credit in order to pay their bills” but what we’ve also seen is that 870,000 households are planning to do so in the coming months”.

She said: “I think that gives you an indication of what’s to come. We are now seeing some of the impact of high prices, but much of that has yet to be felt, so I think the situation is absolutely going to get worse before it gets better.

Amigo, which nearly went bankrupt last year, stopped lending in 2020 to deal with mis-selling complaints. New loans require FCA approval before being made available. Borrowers can reduce the overall interest rate if they pay on time and can also freeze a payment once a year without penalty.

He argues that his loans should not be described as high cost, but rather that they cater to the mid-cost market. “Many vendors have exited the market in recent years, and there remains demand, which may increase due to cost of living challenges.

“As the Center for Social Justice reports, those unable to access legitimate lenders are turning to illegal lenders in greater numbers, making the role of companies like Amigo important to its customers,” the company said.

Some FCA-regulated short-term loan companies operating online offer loans with APRs of up to 500% and 1,200%.

A study by the Joseph Rowntree Foundation found that one-fifth of low-income households were indebted to an approved high-cost lender, and 84% of them were in arrears with at least one household bill.

A total of 90% of households with high-cost credit went without at least one essential item this year, or experienced food insecurity in the past 30 days, the data shows.

“I don’t think anyone chooses to loan out at this level unless they absolutely have to get out of it,” Earwaker said. “It’s a spiral: if you’re in a position where you have to take out that loan in the first place, chances are you won’t be able to meet the repayments attached to it.”

Debt charity StepChange said it expected to see a growing reliance on high-cost credit as rising prices stretched people’s financial resilience.

“Taking out high-cost credit is not a discretionary activity – it’s due to the lack of other options and is often taken out to pay for essentials,” said Sue Anderson, its media manager.

However, she added: “At a time when people are grappling with the cost of living crisis and many low-income households are struggling to make ends meet, further borrowing is unlikely to be forthcoming. the answer to the financial problems of many households”.

The FCA said it had made several reforms to the credit market since 2014, including capping the cost of payday loans and accessibility requirements for new loans.

“Where people are struggling financially, help is available,” a spokesperson said.

“Lenders need to provide tailored support, including ensuring repayment terms are sustainable. We recently reminded lenders of their responsibilities and that we will act if they fail to meet them.

Pricing transparency can end the crushing burden of medical debt – InsideSources Wed, 29 Jun 2022 00:38:54 +0000

The Kaiser Family Foundation has published a new analysis recently concluded that a staggering 100 million Americans have medical debt, or 41% of the nation’s adult population. This crushing debt burden exceeds previous estimates because it includes medical liabilities held through informal loans and credit cards that do not appear in other analyses.

This statement shocks the conscience whatever your political position. This is perhaps the best evidence of America’s predatory health care system and the need for immediate reform to help ordinary families avoid financial ruin. This indebtedness is particularly heavy in times of historic inflation when real wages and the standard of living decline.

Some policymakers point to the widespread financial devastation of health care overload to call for the socialization of health care in a Medicare for All system. Yet there is a much simpler solution to protecting patients against medical debt while expanding access, choice and competition: healthcare price transparency.

Real upfront prices allow consumers of health care, including patients, employers and unions, to avoid predatory pricing for the more than 90 percent health expenditures that are not intended for emergencies. Accurate pricing allows patients to choose quality and less expensive hospitals and health insurers, to have recourse in the event of over-billing, and to have the peace of mind that their care will not lead to personal bankruptcy.

Under the opaque health care status quo, hospitals and health insurers are blinding patients to prices, then blinding them with huge bills they would often never have accepted in the mail for weeks and months. after care. As a result of this dynamic, the costs of care and coverage have exploded, increasing to more than twice the inflation rate. Hospitals now charge on average Seven times their childcare costs.

Average annual premiums for employer-sponsored family health insurance are $22,221 per year, excluding deductibles. This health care overload suppresses employee salaries.

Imagine the outrage if another business, from your neighborhood dry cleaner to your auto mechanic, engaged in such egregious billing practices. Vanderbilt University health economist Larry Van Horn notes, “Even in the darker corners of the market, like payday loans, we don’t require consumers to pay indiscernible prices at ‘advance.

There’s a reason the only industry causing routine financial havoc is also the only one with hidden prices.

When the prices are known, the overcharges, overpricings, billing frauds and debts they cause will come to an end. Hospitals and health insurers that engage in such practices will be bypassed in favor of those that provide quality care at fair prices. Consumers can compare their employer’s plans to alternatives and dismiss outrageous negotiated rates. Competition will reverse exorbitant costs and make prices affordable, as it does in almost every other economic sector.

This pro-consumer, transparent pricing healthcare revolution has already begun. As of January 1, 2021, price transparency for federal hospitals to reign went into effect, requiring hospitals to post their discounted cash prices and all negotiated rates by insurance plan. As of July 1, transparency of health insurance prices to reign comes into force requiring insurers to publish their historical claims data and secretly negotiated rates so that consumers can access actual and up-front prices wherever they receive care.

Unfortunately, the hospital’s rule has been marred by widespread non-compliance. According to a recent study by, only 14.3% of hospitals in the country follow it. Hospitals deliberately break the law to maintain profit by keeping consumers in the dark. Fortunately, the Department of Health and Social Services has finally started impose fines on non-compliant hospitals a year and a half after the rule takes effect. Rigorous enforcement of this rule and the insurance order can make this consumer-friendly vision and price transparency a reality.

When all the prices for health care and coverage are known, patients and employers will not tolerate paying 10 times more for the same care as the person in the bed next to them. An active and competitive healthcare marketplace will emerge, based on choice and financial certainty. Patients can proactively avoid most cases of medical debt and take control of their health and wealth, ending this national embarrassment.

Nexo responds to accusations of stealing donations and embezzling charity funds Mon, 27 Jun 2022 06:45:32 +0000

Cryptocurrency lending platform Nexo hit back at what it called ‘fake news’ and rumors that its founders were part of a charity embezzlement scandal, saying the allegations were false and defamatory. It issued a public cease and desist notice to the author of the allegations.

In a blog post about the claims, Nexo said:

“Several anonymous Twitter accounts are using lies and distortions in yet another smear campaign against Nexo and profiting from short positions in a struggling market.”

The pseudonymous Twitter account otteroooo, which calls itself “Otter”, posted a series of tweet on June 25, claiming that the co-founders of Nexo stole funds from the Bulgarian charity HelpKarma to buy real estate and finance “lavish personal trips”.

The thread garnered a large following on Twitter, with Otter sharing a screenshot that it had received over 9 million impressions, prompting Nexo to answer to what they say are “ridiculous allegations” and issue the cease and desist to remark.

Otter’s central allegation is that HelpKarma founder and Nexo co-founder “Konsta Kanchev” used funds from donations to help build a palace instead of using the money for the children’s medical treatment.

In a response from Nexo, he points out that a “Konsta Kanchev” does not exist and Otter deliberately created the name “to mimic a typo as an excuse for fact checkers” by confusing two separate people, the founder of HelpKarma, Constantine Krastev and Nexo co. -founder Kosta Kantchev, as the same person.

Speaking to Cointelegraph regarding the confusion of the two, Otter shared a delisted article from Bulgarian outlet Fakti saying the two are cousins ​​and that Constantin in Bulgarian is written “Konstantin” but has since provided no further comment.

Another major allegation from Otter is that as donations from HelpKarma grew, payday loan company Credissimo began reporting sizable capital increases, citing a November 2020 report. report by Fakti, implying that the donations were used to fund Credissimo.

On how this scandal relates to Nexo, Otter points out that the Nexo white paper said it is “powered by Credissimo”. Credissimo was founded by Kantchev, and Nexo co-founders Georgi Shulev and Antoni Trenchev were the business development and business innovation managers respectively.

In response to the claims, Nexo said that it and HelpKarma “do not and have never had any common operations, common beneficial owners or common management“, adding:

“Why should a company with hundreds of millions in revenue and billions in assets under management, approved by Fidelity, Mastercard and dozens of regulators, resort to petty theft, let alone children with medical needs?” is the logical but overlooked question.

Cointelegraph has contacted Nexo to comment on the allegations and has yet to receive a response.

Related: Don’t Click Links: Crypto Community Responds to Telegram’s Alleged ‘Exposition’

The main motive stated by Nexo for why Otter published the allegations is so that Otter could gain a large audience and sell the account.

Nexo shared footage of an individual who tried to buy Otter’s account, to which Otter replies that he wants a minimum of $50,000 in coins (USDC).

But in a Twitter thread posted by Otter on June 26, they claim they suspected the posts were a “set up” to buy the account so Nexo could silence them. Instead, they “devised a troll plan” to sell the Otter account to collect Nexo’s “silence money” and create another account to “continue exposing them”.

Nexo says this isn’t the first time they’ve been involved in what they call a ‘coordinated attack’, citing accusations in 2020 that it was behind Zeus Capital, an asset management firm that wanted to run -circuit Chainlink (LINK).