Young Money

A special highlight today spotlighting the productive efforts of Young Money.



The youthful and creative bunch are well-known as efficient producers of hip-hop music: lots of it at a low cost. Young Money's founder, star artist Lil Wayne is ubiquitous in the mixtape industry, known for arguably the largest volume of published rap available in digital (or physical) form. Considering that YouTube can make you a rapper, that's a most impressive credential. Perhaps even more impressive is Wayne's contribution to the American English lexicon: bling-bling. It is heavily debated that while Wayne did not invent the word or the definition, he did help push its usage into the mainstram following his performance on the hook of B.G.'s 1999 single of the same name.

Not to be outdone, the Young Money crew continues to seek profits in other industries as well, namely cigars and debit cards (this link is not an application form for the card). Random? Perhaps, but not if you associate with Young Money's target demographic or familiarize yourself with their lofty lyrics. There's a market for any and everything perhaps (see 3/24/09 posting) The somewhat offbeat investments could shape up to be well-informed steps towards transforming Young Money into Mature Wealth.

The Young Money prepaid debit card only allows the user to spend - at most - what is in their account. So no "ballin' outta control" if you don't got it. A debit card, versus a credit card, urges more fundamental and practical money management; espeically for young hip hop fans. The Delasol Group credits artists that sing with the bling and support responsible economic growth in marginalized communities and beyond.

Another company that cater to fostering sound market transations with communities of color in (neighbor)'hood near you is Russell Simmons' Rush Card. Savvy ECONtrepreneurs would be wise to read the small print (it's your right!) and compare card fees. The chart below was obtained from Rush's site:



And for good measure:



Careful Spending.

DLS

We see you, Uncle Sam

Don't get it twisted, Uncle Sam. The People of the United States are watching You!

We check back in a few months after a previous blog post on the Credit Accountability, Responsibility & Disclosure Act of 2009. Is Uncle Same keeping his promise of protecting credit card holders? We survey news items obtained from Google on what's current in the personal credit card markets.


1. Early in June, credit card issuers were already cutting up, finding ways to circumvent the new legislation. Violators have been charging new customers processing fees of up to $95 before the card is even used. Fail. Others increased interest rates before the Act took hold and offer a partial rebate (in the future of course) at the lender's discretion. The net result is the same as rasing rates. Epic Fail.

2. July told much of the same story. An associate economist the the Federal Reserve Bank of Chicago is quoted in the Wall Street Journal saying "Card companies are figuring out how to replace old fees with new ones....It's a race between regulators writing ever-more-complex laws and credit-card companies setting up ever-more-complex fees." While the fee increases are legal, they were starting to get out of control. A coalition of consumer rights groups sent a letter on July 7 to the Office of the Comptroller of the Currency name-dropped several offenders. Banks can't charge interest or fees on days payments can't be processed - Sundays and holidays - but stand firm that they still "accept"payments on these days. Doublespeak.

How to fight back amid the minefield of self-interest card companies? First, if you use credit at all, pay your bills on time. Makes raising sand when and if your card company unlawfully raises your interest rate or shortens your billing cycle much more palatable.

Second, continue to education yourself on credit card legislation. You can read the 33-page Credit card Act here (PDF). Get a credit report and always, read the small print. It's in plain language and right in front of your face...by law!

We like this chart, obtained from the WSJ online, with data obtained from the Pew Charitable Trusts, the National Consumer Law Center and the Center for Responsible Lending. It summarizes some of the less scrupulous practices currently being reported: