All these numbers add up to some alarming trends. Bretton Woods, Inc., a bank strategy firm, used these numbers to draw some generalities about overdraft fees and the effect they had on consumers. According to their report, the average American household accrues more than 12 overdraft transactions annually, resulting in $368 in fees on average.

The result of these fees is a $37 billion annual industry for U.S. banks and credit unions. An amount, says the firm, which is causing these institutions to become ever reliant on overdraft fees as sources of revenue. “We see no reason for this trend to change,” said report author G. Michael Flores. “Bounced check fees and overdraft protection will have a larger and larger financial impact on households.”

And, ultimately, it is the young, low-income and underbanked that are the ones that will reap these consequences.

To read the FDIC report in full, click here, or for the Bretton Woods report, please click here.

Click here for a short comparison between banking fees and other short-term loan options, such as online cash advance services, presented by the CFSA.

In two recently published reports, a pair of trusted financial institutions studied how American consumers are affected by bank overdraft and NSF fees and how banks are becoming increasingly reliant on this $37 billion industry.

An FDIC study of bank overdraft programs followed the trends associated with the use of overdraft and non-sufficient fund (NSF) fees in 39 accredited banks in the U.S. The numbers are astounding. According to the study, nearly 22.5 million overdraft transactions were recorded in the past year. The average fee associated with each incident was $27 per infraction.

While one overdraft incident won’t necessarily put a consumer in the poor house, multiple infractions can add up quickly. Nearly 12% of consumer accounts recorded one to four overdraft fees in the past year, costing the account owners an average of $64. Even more astounding are the 5% of consumers that recorded more than 20 fees, resulting in over $1,600 in fees annually.

These reoccurring fees cause consumers to fall into an overdraft cycle, whereby the more penalties that the customer incurs, the less likely he or she is to have sufficient funds available in their account, which results in even more and higher penalties.

The report found that young adults (ages 18 to 25) were the most likely to accrue overdraft penalties, nearly 50% of which recorded at least one overdraft transaction in the past year. Nearly 15% of these consumers accrued more than 10 penalties in the same time frame.

Customers in low-income areas were also more likely to accrue overdraft penalties and more of them. 38% of low-income accounts (those customers making less than $30,000 annually) incurred at least one overdraft transaction in the past year, compared to only 22% of upper-income accounts. These customers also receive more violations, with 7.5% recording 20 or more NSF fees, compared to only 3.8% of upper-income clients.

This article is part of a two-part series

A recent consumer reports poll finds that most Americans think that the Government bailout of top financial institutions is the wrong move to help the economy.

Of those polled, only 17% thought the government should do more to help the failing financial industry, whom many view as the cause for the quick economic downturn.

In addition, 56% of consumers polled thought that the government hasn???t done enough to help individuals in this time of economic downturn. When asked what steps the government should take to ensure financial stability for Americans, 88% cited protection of the Social Security System, 87% called for decreasing the national debt and 82% wanted affordable health care for all Americans.

For the full results of the survey, click here.

It comes as no great surprise amidst an economic downturn, but over three-quarters of consumers polled for a recent survey said that they were going to cut back on their holiday spending this year.

Most polled (59%) said they would buy few gifts, but surprisingly, nearly half said that they were cutting back on their seasonal travel plans.

The consumer reports study also showed that nearly 12 percent of Americans still have leftover debt from last year???s holiday spending, causing most consumers to be even more cautious about overspending this season.

Click here to read the report in full.

Looking for a fast cash solution? Rely on America’s trusted online lender – CashNetUSA.com. We serve over 30 payday loan states across the U.S. and are expanding to meet the needs of even more.

Join over 1 million customers that have found a convenient and fast solution to everyday money needs from over 30 payday loan states in the U.S. with CashNetUSA.

Apply online, get fast approval and receive your money directly into your checking account next day. From Alaska to Wyoming, CashNetUSA is serving payday loan states with fast, friendly and prompt financial services.

A recent report by the Federal Reserve Bank of New York has finally brought to light hard evidence to dispel the idea that payday loan providers are engaging in ‘predatory lending’ practices.

The report (available here) offers the results of a study of households in Georgia and North Carolina, two states which banned payday loans in 2004 and 2005, respectively. Compared with households in other states, those in both Georgia and North Carolina recorded more bounced checks, more complaints about lenders to the Federal Trade Commission and filed for Chapter 7 bankruptcy at a discernibly higher rate.

The report authors attribute this rise in credit risk and penalties to the decrease in responsible credit options available to sub-prime consumers. In the 2-3 years since payday loan lending was banned, consumers in these states have great financial challenges with far fewer options.

When these laws were enacted, the Center for Responsible Lending (CRL) estimated it would save consumers $154 million per year in loan fees and interest. What they neglected to take notice of, is that the fees for bounced checks, credit late fees and NSF charges outweighed the fees for responsible payday loans – leading GA and NC residents not to save hundreds of millions, but instead pay millions more in penalties.

Luckily, most states recognize the benefit of cash advances and payday loans for their citizens’ short-term money needs. While these cash advance options should not be used as long-term financial solutions, they are one responsible option for consumers to face immediate money needs without paying unnecessary late fees or overdraft penalties.

Click here for more information on online payday loans.

Unless you live in a cave somewhere, you’ve probably heard about the dire news coming off of Wall Street. Even if you’re not a big time investor or have stake in the quickly crumbling mortgage market, the effects of the US economy’s downturn can still be felt at the pump, the grocery store and your wallet.

Even as large banks are making it more difficult to qualify for personal loans, there is a reliable and trustworthy way to get the fast money you need to keep up with monthly bills and everyday expenses in the midst of a nationwide recession. Cash advance providers such as CashNetUSA can still supply you with the cash you need quickly and conveniently.

An online payday loan can be an easy way to the financial strains added by rising gas costs, increased grocery bills and increased utility fees.

Apply online in minutes, get instant approval and receive your cash fast, often by the next business day. A cash advance from CashNetUSA is just a small way you can hedge the bet in your favor when it comes to everyday expenses.

So far, this winter has been a roller coaster ride for consumers following the financial decisions coming out of Washington.

First, the IRS announced that the tax refunds of millions of Americans would be delayed by two months or more – cash that many Americans rely on to cover past debt, pay bills or use to repay the money they borrowed over the holidays.

Now, the government is working fast to enact a new Economic Stimulus package that would send checks of between $300 – $1,200 to the majority of American taxpayers. The act is designed to stimulate the sluggish economy by encouraging consumers to spend the money that they would not have otherwise had. Many financial experts are suggesting that consumers take a smarter approach and use at least a portion to pay down high-rate credit card balances or other outstanding debts.

While the financial future for many taxpayers may be bright, these decisions coming out of Washington do not face one important factor – the immediate need of consumers in the short-term. Like many Americans, you may feel the pressure of delayed tax refunds at the very time that holiday bills and increased winter expenses are coming due.

Luckily, there is a responsible short-term financial solution to hold you over until your refund comes. A next-day cash advance can help you find the money you need for monthly bills or emergency expenses without adding to your credit card debit or risking overdrawn bank penalties. Best of all, they are simple and fast – you can apply for a payday loan online in minutes and get the money in your account by the next business day. These no-fax cash advances⁴ are available to all consumers, even to people with poor credit³.

Financial decisions that come out of Washington affect us all, whether we have a say in them or not. But with fast online cash advances and payday loans from CashNetUSA, you have the power to Make Anyday Payday.

The holiday season may be a distant memory of shiny gifts, turkey dinners and the infamous fruitcake – but if you are like most Americans, the seasonal expenses that you collected during the holidays are still coming on strong.

To add to the financial frustration, the IRS has just announced that as many as 13 million Americans will see a significant delay in their tax return refunds – money that many people earmark to pay off those holiday expenses. Due to a last minute change to the tax code, the IRS estimates that as much as $45 billion in tax refunds could be delayed by seven weeks or more! Learn more.

Luckily, there is a fast and secure financial solution to keep your head above water during this trying time of year. A next-day cash advance from CashNetUSA can help you get the money you need to pay off those immediate seasonal expenses while you wait for your income tax refund. With a fast and simple online application, instant approval² and money wired directly to your banking account, a payday loan from CashNetUSA is the hassle-free online option.

Feel confident borrowing from one of the leading licensed online lenders – CashNetUSA is approved for lending by the states in which it does business and is a proud member of the CFSA and Better Business Bureau.

If holiday bills have left you anything but merry and you were counting on a fast income tax refund, consider a next-day cash advance¹ from CashNetUSA as a sensible and hassle-free short-term solution.

P.S. Don’t forget to file your taxes as quickly as possible to minimize this unfortunate tax delay. File online now with our premier tax affiliate, Complete Tax, and get your refund faster. Simply click here to get started.

The reality is that most Americans don’t have enough saved away for that rainy day. Most of us spend our paycheck within a week of receiving it – and then rely on other more costly ways to make up the rest. But, with a little information and foresight, anyone can work towards saving money and get out of the paycheck to paycheck cycle. Here are five easy ways to change your life:

1. Budget – Most Americans spend above their means by using credit credit cards. Learn how to cut out these expensive debt pits by making a budget of essential spending and sticking to it. Pay for everything in cash – that way you won’t be tempted to break your budget with the swipe of some plastic.

2. Save More – Dedicate a percentage of your paycheck – no matter how small – to a savings account. Shop around for the best deal – while your bank may only offer a 1 or 2% interest rate, new online banking institutions can offer as much as 5%, meaning your money will work harder for you.

3. Invest in Education – Have you ever thought about going back to school? Sure, you may incur extra debt in the form of student loans, but these are usually low interest loans designed to be paid off over an extended period of time. The education you gain, and the monetary successes that will result from that, will reap much higher rewards in the long run.

4. Borrow Smarter – It’s true that sometimes your paycheck just doesn’t quite cut it. In these circumstances, rely on smarter lending options such as a short-term payday loan. Provided that you take out only as much as you can pay back, the interest rate for these emergency cash advances are far lower than bounced check fees, NSF fees or high-rate credit cards.

5. Ask for Help – There are a multitude of resources for those who need help with credit and money issues. Look online for tips on how to save, check out a personal finance book from the library, talk to a credit counselor or discuss your situation with trusted friends or family that have been through the same ordeal.

Americans across all income brackets have the chance to turn their financial lives around and save more money. It’s just knowing how to begin and sticking to your plan that will help lead you to the end of the rainbow.