Roughly two-thirds of the 956 respondents to the company’s poll said they approved of limiting credit access to young adults. CardRatings founder Curtis Arnold nevertheless has doubts about the legislation.

Caption: dmuth

“I think legislators really ‘missed the boat’ on this one,” Arnold said in a press release. “We allow our sons and daughters to go off to Iraq and Afghanistan and fight at the age of 18, yet starting in February millions of students likely won’t be able to get a credit card until they are 21!”

Arnold’s passionate response is understandable; freedom to fail is a right Americans have enjoyed for decades. But there’s also no doubting the numbers. Twentysomethings suffer more from self-inflicted credit wounds than do their older peers.

Rising college costs could be partly to blame. According to an April study by Sallie Mae, college seniors with at least one credit card graduated with an average of $4,138 in credit card debt last year. Let’s put that number into context:

• The average U.S. worker took home $41,334.97 in gross annual pay during 2008, reports The Social Security Administration.
• According to The Federal Reserve, consumers held $899.4 billion in revolving credit as of August, or roughly $3,000 for every one of the 300 million or so Americans alive today.

Not only are college kids graduating with a higher level of indebtedness, they’re graduating with a big chunk of their annual incomes already spoken for by way of interest payments — and that’s assuming they’ve found jobs paying $40,000 or more a year.

So while Arnold’s response makes sense, so does the Obama administration’s nannying of young creditors. The statistics are too startling to ignore.

Meanwhile, parents like me are stuck between these competing forces. We’re the fortysomethings who hope to raise fiscally responsible children. What can we do to prepare them for their first credit cards? Here are three suggestions.

1. Establish a budget.
Credit cards are best used as checks, payment tools where the hoped-for result is to not carry debt but collect cash back or other rewards. We can help our children live this ideal by building a budget they’ll stick to. A simple spreadsheet or free online service should do the trick.

2. Create a BIG spending goal.
But a spreadsheet alone isn’t enough. Budgets fail when they operate in a vacuum. Our kids need goals to make their budgets actionable. What they’re saving for doesn’t matter. Be it a car, a PlayStation, or a weeklong vacation away from Mom and Dad, giving children reasons to save should increase their savings.

3. Be the banker.
And if they still don’t save? Allow them to borrow, at a rate they’d pay if they had a credit card. Let them experience the pain of watching interest and minimum payments turn a $200 PlayStation into a $500 PlayStation. Better that your child overpay for a video game console than a house. Eviction is a nasty way to learn about responsible credit.

As parents, we can and should take action early. What else would you do, and what are you doing now? Please use the comments section below to weigh in on these questions and tell us whether you favor the Obama administration’s credit activism.

Tim Beyers is a professional freelance writer who has been a regular contributor to The Motley Fool since 2003. He is also the co-creator of Editorchat and curator of The Freelance Writer’s Helper. Visit his Website or find him on Twitter, @MileHighFool.

The average age of retirement in the United States is 62 years old, with retirement typically lasting about 18 years. That’s a long time to be living on money that’s been squirreled away via savings, investments, and a 401K. Fortunately, if you’ve been smart with your money and planned ahead for retirement, you can live comfortably and enjoy your golden years by spending some of your savings on fun activities.

Below we highlight 8 things retirees can spend part of their savings on, and illustrate how much money would have to be put into a 401K to afford such luxuries. Each amount was based on a tax rate of 28% and stock market returns of 12%, with a 50% employer match program and 30 years until retirement.

If you need a refresher on how a 401K plan works and why it’s the most fiscally sound option when saving for retirement, check out this video to learn why it’s ideal for maximum savings potential.

Caribbean Cruise

What better way to enjoy retirement than to take a relaxing two week cruise through the Caribbean? There’s no better reward for decades of hard work than crystal blue waters, sandy beaches, warm temperatures and piña coladas.

Sample cost: $3,500
401K savings: $13/year, or about $1/month

European Vacation

A two-month trek through Europe would be quite the adventure. A retired couple could visit multiple cities, take in multiple historic attractions, sample great food and wine, and bask in the diverse European culture.

Sample cost: $10,000
401K savings: $38/year, or about $3/month

Time Share

Time shares are handy options for couples who enjoy traveling but don’t want to be bogged down with a vacation home in a set location. They can visit numerous cities without worrying about hotel rates or fluctuating fees.

Sample cost: $20,000
401K savings: $77/year, or about $6/month

Cabin Cruiser Boat

Take to the seas in a roomy, comfortable cabin cruiser. The cost of a boat varies depending on its size, engine type, age and condition, but once you’re out on the water enjoying retirement, you’ll probably think the purchase was well worth it.

Sample cost: $50,000
401K savings: $192/year, or about $16/month

Luxury Car

A lot of people splurge on their dream car once they’ve retired. Whether they’re in the market for a flashy sports car or are looking to buy a luxury sedan, their purchase will probably cost significantly more than your standard Chevy Aveo.

Sample cost: $70,000
401K savings: $269/year, or about $22/month

Class-A RV

Many retired people buy RVs so they can take to the road and explore the US. There are several different types of RVs, with the class-A RV being the largest and most expensive, but we’re betting that most retirees would justify the cost so they can cruise from coast to coast in style and be comfortable.

Sample cost: $90,000
401K savings: $345/year, or about $29/month

Home Remodel

Many retirees finally have extra time for all of those home projects that have added up throughout the years. Some people may opt for a new kitchen, while others splurge for an addition to the house or a revamped master bedroom suite. Whatever the project, it’ll likely cost a pretty penny.

Sample cost: $100,000 for a new kitchen, bathroom and master suite
401K savings: $384/year, or about $32/month

Vacation Home

It’s common for retirees to purchase a vacation home in a warm locale, to be close to family, or simply because they like visiting a particular destination. Vacation homes obviously range depending on the size and type of home and its location, but for most retired people it’s a necessary cost that they’ll appreciate for the rest of their lives.

Sample cost: $300,000
401K savings: $1,151/year, or about $96/month

Sources
1. http://www.budgettravel.com/bt-dyn/content/article/2005/06/04/AR2005060400460.html
2. http://www.rvinsiderguide.com/html/rvinsiderguide/articles/average-prices-of-rv.html
3. http://www.costhelper.com/cost/leisure/caribbean-cruise.html
4. http://cgi.money.cnn.com/tools/renovation/renovation.html
5. http://answers.yahoo.com/question/index?qid=20081025105647AAQhdnU
6. http://www.washingtontimes.com/news/2009/apr/13/rising-costs-of-health-care-hamper-retirees/

Global Entrepreneurship Week tournament gives students around the world just eight days to develop innovative solutions and have impact

Credit: amagill

“Make Saving Money Fun.” That’s the task that thousands of students of all ages from at least 51 countries will tackle in the next week in response to a challenge unveiled yesterday by the Stanford Technology Ventures Program. And the students’ actions just may help people find a way through the global recession.

Free to interpret the challenge any way they want, students have just eight days to come up with innovative solutions and convey their results in a short video posted to YouTube. Called the Global Innovation Tournament 2009, the competition is organized by STVP at Stanford University for Global Entrepreneurship Week and run locally by over 100 universities, schools and other organizations. The global sponsor for the competition is Intuit Inc., a leading provider of financial management solutions for consumers and small businesses.

An official activity of the Week, the competition is designed to inspire students to work in teams, challenge assumptions, seize opportunities and be creative. Most of all, it gives them a taste of what it’s like to be entrepreneurial: students must deliver results while working with tight constraints, such as limited time and resources.  Great ideas are not enough – they actually need to implement their ideas. Local and then global judges will determine who has had the biggest impact during the eight days.

Past versions of this competition involved giving students a common object, such as Post-it® Notes, rubber bands, or water bottles, and challenging them to create as much value as possible from these objects in a few days. Teams invented products, raised and donated money, composed music, entertained, helped the disabled, made political statements, educated children, and much more.

Producer, Quincy Jones, III, and Grammy-Award winning hip-hop artist, Chamillionaire, helped launch the tournament live at Stanford yesterday afternoon in front of 1,700 people.  They shared their experiences as entrepreneurs who use the very skills that tournament participants must draw upon and talked about innovation in the changing music industry. The local winners in most locations will be announced during Global Entrepreneurship Week, Nov. 16-22, and global winners will be announced online on Thursday, Dec. 3, on www.unleashingideas.org.

Credit: livenature

“This competition is a condensed, entrepreneurship immersion experience,” said Jonathan Ortmans, president of Global Entrepreneurship Week. “It’s enormously empowering for the students to realize they can create value from virtually nothing. This is the fourth time STVP has run this competition, and the results are always astounding.”

Intuit’s chief innovation officer, Kris Halvorsen, said that the challenge could yield new ways of thinking about personal finance.

“Entrepreneurial students collaborating to solve an important problem that has global impact is right in line with Intuit’s fast-paced, innovation-centric culture.  And, in this economic downturn, Intuit is more focused than ever on helping consumers and small businesses save and make money,” Halvorsen said. “As ardent supporters of the next generation of innovators, we applaud Stanford’s open approach to uncovering fresh ideas that will positively affect how people create value and make and manage their money.”

There is still time for students and organizations interested in participating in the Global Innovation Tournament to jump in.  Details are available at http://www.unleashingideas.org/tournament.

So how do you go about making this extra money? You could work more at your regular job. Odds are though, you’re a salaried employee. Working more will only mean more time away from your family, not more money. And even if you have a hourly job, extra hours are probably hard to come by in this economy.

You could ask for a raise. Not a bad idea in normal times. But we’re not exactly living in normal times. Many of us are worried about just keeping our jobs. So what’s the solution? For me, it’s been having my own blog and writing about personal finance. I’m able to make a quality secondary income from my efforts.

So, is blogging about finance the answer? For me it was. But it isn’t necessarily what’s going to bring you extra income. Here’s why:

I’m passionate about personal finance. It’s something I liked talking about prior to even blogging about the subject. Also, because I’m passionate about the subject, I meet other people who also like to talk and write about it. I learned from their successes and have since been able to find my own success to share. Lastly, because of my passion, I was able to develop a plan for a successful blog, as well as, put in the time to actually make it successful without it feeling like a huge hardship.

So what does all this mean for you? How do you take the lessons I’ve learned from my putting my passion project into action and use it to provide more income for you and your family? It’s your lucky day. I’ll do it for you. Here are my 5 tips for making extra money. Remember: It starts with passion.

Turn a Hobby into a Paying Gig – What are you hobbies? What are the things you like to do with your free time? That’s likely the thing that you should focus on to create some extra income. You’re already passionate and knowledgeable about your hobby. Find a way to turn it into extra money. Need specific ideas for hobbies that can bring in extra income? Download my ebook, 52 Ways to Make Extra Money…Revisited.

Credit: wka

Just Start, Perfect Later - You’ve heard it before, “the perfect is the enemy of the good.” This is so true when it comes to making extra money. A lot of time and money is wasted on putting together the perfect business plan. Some planning is good, but you’ll learn far more about your side business if you just start. You don’t need business cards or a website to get started. Just go make sales. Then get those other things going once you figure out how to make money with your side business.

Find Someone Already Having Success – Finding success with any business rarely happen to those who try to go it alone. Besides, most worthwhile money making ideas aren’t novel. Someone has already done it and is doing it better than you could ever imagine. Find those people, make friends, provide value to them, and then study how they do what they do. This is the quickest way to turning your struggling side income into a successful money maker.

Credit: perhapstoopink

Set Goals and Create a Plan – At some point, maybe after you’ve got some sales under your belt and have a feel for the business, you need to establish some goals. This goal plan will then become the guide for how you go about your side business over the next few weeks, months, and years. Revisit these goals on a routine basis and make adjustments as you learn more about the business and your expectations become more realistic.

Put in the Time and Discipline - My last tip is one you might not want to hear. It takes a lot of time and effort to produce something valuable enough to bring in a consistent extra income. I spend a lot of late nights and early mornings working on my side business. But because it’s a passion of mine, I can stick with it, even when it seems like success is a bit further down the road.

New VP and GM, Aaron Patzer

This week, Mint.com and Quicken will come together into one organization, the Personal Finance Group at Intuit, where I will be the new Vice President and General Manager.

In the past, you may have heard me say things like “Quicken isn’t quick enough”.  I stand by all the things I’ve said when Quicken was a competitor – there is much to improve in Quicken going forward. I like to think that the great improvement we’ve already seen in Quicken 2010 was at least in part inspired by the competition of the past few years.

What I couldn’t say in the past, as a rival, I’ll say now.  Quicken desktop is the best tool out there for handling your investments.  It does tax-lot accounting, time-weighted returns, and has unparalleled accuracy and depth in this area, making it a good fit for someone with many assets.  Quicken has great tax functionality, like the ability to export medical or business expenses to make calculating your deductions easy.  Even Quicken Online has a few features we’d love to add to Mint.com – the ability to track cash and outstanding checks more easily, and import historic data.

In the future, everything that’s good about Mint.com will be incorporated into Quicken desktop, and vice versa.  Over the next year we’ll be incorporating better categorization technology in Quicken, so that you see exactly where you money is going, with less effort.  We’ll be adding a new “savings engine” in Quicken that looks at all of your financial accounts, and finds products with better interest rates and fewer fees.  With this savings engine, you’ll have a software “advisor” that lets you know when it’s time to refinance your mortgage, or switch to a different savings account that yields more interest. We’ll pull cash and check tracking and the ability to import past transactions into Mint.com.

Both the online and desktop experience will improve dramatically – creating a continuum of products for people as their financial lives and needs change.  The new, combined Intuit Personal Finance team can help even more people save and do more with their money.

Credit: rebelcan

Maybe you want to spend that much, but with the holiday almost here, there’s no time left to get fancy. The good news: making your own costume is both cheap and easy. Here are five ideas that should run you no more than $5 a pop.

1. Your favorite TV character
Most Americans watch TV and chances are you have a favorite show. Why not steal your favorite character’s look for this year’s shindig? Reader Jacob Roche plans to dress up as Doctor Who in honor of the 1960s science fiction hero imported from British television. But he also has a cheap idea for those more interested in a modern look.

“House,” Jacob says. “Mess your hair up, get a cheap cane and gray sportcoat from a thrift store, and [buy] a bottle of Vitamin C to pop all night.” Think that will cost more than $5? Don’t be too sure; all manner of dress can be had off the rack at your local Goodwill store for $1 or less.

2. An ancient archetype
Longing to put your hours watching The History Channel to work? How about using your knowledge for costume ideas? Reader Kat Powers keeps her ideas simple. “I have a Roman senator’s costume made from a blue bedsheet and gold blanket trim. Add sandals, you’re set,” Kat says.

Not bad. Trade the blue bedsheet in for a white bedsheet and dust off that old copy of your Philosophy 101 textbook and you’re a Greek scholar, or Aristotle if you can pull off the white beard.

3. An everyday product
Look around your kitchen and bathroom cabinets. You’ll find costume ideas everywhere! All you need is a little imagination mixed with a dash of daring.

For example, one of my wife’s friends recently went to a party dressed as Pepto Bismol. The get-up? A pure hot-pink outfit. Raid your closet for an all-green ensemble and you’ve got Simple Green for a costume idea. All white and you’ve got Ivory Soap. See the pattern here?

4. A play on words
Just as simple is the costume that befits wordplay. For example, to make the costume “Starry Night,” reader Anna Tabakh glues glow-in-the-dark stars over an all-black outfit.

Her other favorites include “Multiple Personality Disorder,” a neutrally-colored outfit covered in tags with different names and personalities, and “Nudist On Strike,” which is as you’d expect — regular clothes accompanied by a cardboard sign that reads “Nudist On Strike.”

5. Your old costume
And if you’re out of ideas? What about the costume that worked last year, or two years ago? You might face some ridicule from your closest friends and neighbors, but everyone else will be blind to your recycling.

Of course, these are only five ideas. They’re not for everyone. Mostly, they’re for those of us who waited till now to figure out what to wear, and who fret about the cost of not being a Halloween party pooper.

If you’re among the more prepared, do the rest of us a favor and leave a comment in the box below. We’d love to hear your cheap and easy last-minute costume ideas.

Tim Beyers is a professional freelance writer who has been a regular contributor to The Motley Fool since 2003. He is also the co-creator of Editorchat and curator of The Freelance Writer’s Helper. Visit his Website or find him on Twitter, @MileHighFool.

Check out the advice at minute 3:30 in the clip below:

It’s great advice but life as a mustached American isn’t a bed of roses. Despite earning more than their bearded and bare-faced brethren, mustached Americans tend to spend 11 percent more and save 3 percent less than their collective counterparts. Here are some additional stats on spending by facial hair:

· Mustached Americans’ disposable income was spent on toiletries; alcoholic beverages; 1970s and ‘80s-era music memorabilia, clothing apparel; and DVD movies most commonly starring Billy Dee Williams, Chuck Norris, Richard Roundtree, and Burt Reynolds.

· Bearded Americans, according to the study, spend the majority of their income on breakfast pastries, beard combs, lice removal kits, overalls, and hunting paraphernalia.

· Clean-shaven Americans said they most commonly spend their income on items such as Levi’s Dockers brand apparel, signet rings, fitness water and other sports-related beverages, vitamin supplements, strip-mall haircuts, and Zima brand adult beverage.

Need more ‘Stache exposure? Check out American Mustache Institute’s ‘Stache Bash 2009 — a charitable benefit for Challenger Baseball featuring legendary mustache and music legend John Oates, sponsored by Quicken happening on October 30th in St. Louis.

Times are tough, money is tight, and the holidays are fast approaching. Many shoppers need to keep a tight rein on their spending, but don’t want to feel like the Grinch when it comes to giving gifts to friends and family. How can you save money while giving thoughtful gifts? Believe it or not, it can be done! Here are 9 affordable – and in most cases, free –gift ideas to make holiday gift-giving easier, more fun and a lot cheaper.

Give the Gift of Charity

With all great gifts, it’s the thought that counts. Consider donating to a charity in the name of the person you are gifting. No one has to know how much you donated, either, so you can easily keep this gift affordable. With so many charities to choose from, you can customize the type of donation to the person’s personality. If you’ve got a friend who’s an animal lover, for example, you can adopt a tiger at ChangingThePresent.org in his or her name. You can choose the cause, the amount you want to donate and a personalized greeting card for your friend, all while earning a tax deduction in the process.

Re-gift with Care

For a close friend or relative, gift something personal that you and this person have in common or have shared. If you share a favorite book, give your friend your copy with a handwritten note on the inside jacket. Play on nostalgia and give items associated with an inside joke or a fond memory (a childhood toy, your favorite CD, ticket stubs of movies you saw together paired with a DVD, etc). This gift idea is inexpensive, but the sentimental value is priceless.

Be a Tour Guide for a Day

Invite your out-of-town family or friends to a weekend in your city and offer them the gift of an afternoon tour followed by dinner at a favorite local joint. Surprise them at dinner with a pop quiz on all the facts you shared about the city during the day and offer inexpensive prizes as gifts (a $5 iTunes gift card, a key chain or coffee mug with the name of your city, etc). Take pictures of the day’s events and turn them into postcards to capture the memories and fun time you had together.

Turn Points into Presents

If you have a credit or debit card that rewards you with points to use towards shopping, use them to purchase gift cards or gift certificates for your loved ones. With an American Express Blue Card, for example, you can redeem 500 points towards a gift certificate to Pottery Barn for your mother. If you can’t find a suitable store for your recipient, many cards allow you to buy Visa/Mastercard/American Express gift cards with the points that can be used wherever the card is accepted.

Give the Gift of Time

For your friends who never have time for themselves because they’re busy taking care of everyone else or are bogged down with work, give them a well-deserved break. Offer to baby sit kids or a pet. Help run some errands or tidy your friend’s place so he can have a breather. The gift of your time will always be appreciated.

Wrap Up Your Skills

Gift your skills in a thoughtful way. Are you an interior designer? Offer to redecorate a room in your friend’s house for free. A web developer? Build a website for your friend or sketch out a plan for their new blog. Skilled in the kitchen? Cook a delicious meal for friends and family. A photographer? Offer a photography lesson or take some portraits of your friends for free.

Shop Early & Often

Start hunting for bargains early in the year, before the holiday rush, and pay attention to summer deals and back to school savings. You can buy lots of great stuff for a fraction of the cost when you shop in the off-season. Put aside the gifts until the holidays roll around, then hand them out and pat yourself on the back for money well-saved.

Peruse Online Deal Aggregators and Bargain Websites

Sites like fatwallet.com, slickdeals.net, bensbargains.net and dealspl.us can give you a daily rundown on deals and steals. Other sites like eBay and Etsy allow you to name your price, ensuring you never go over budget when shopping for gifts. Check deal websites regularly to see what pops up, and stick to a pre-planned budget to ensure that you won’t go overboard with your spending.

Use the Internet to Compile Thoughtful Gifts

The Internet is a vast resource of information and can be utilized to create a personalized gift for your friend. If your buddy is a cook and loves Mexican food in particular, compile the best Mexican recipes you’ve found on the web, print them out and assemble them in a simple cookbook. For a musician friend, find sheet music of his favorite songs. Create web albums of your friends’ favorite music videos/jokes/resources/etc. and compile them. Most of this information will be free to access, and by putting it all together you’re taking time to show how much you care.

Remember, it is the thought that counts. And with a little time and even less money, you can give great holiday gifts your friends and family will appreciate without breaking the bank.

We heard a lot of great ideas. One gentleman said he’d buy a year’s worth of clothes for his son and another would use the money to pay off a credit card bill after proposing to his girlfriend!

Credit: mmechtley

The most popular answer we heard was to use the money for traveling – including trips to New Zealand, New York City, or even Afghanistan. Given that the average rent of a 1-bedroom apartment in San Francisco is $2,172 , we weren’t surprised that a few people said they would put their savings towards next month’s rent.

Here’s a short video of some of our interviews:

We’d love to hear what you’d do if you had free rent this December – tell us in a comment below or ping @Quicken on Twitter!

A few others sent us tweets about how they’d spend a month’s worth of free rent. Here are some examples:

this would be great to get extra Christmas presents!! thanks @quicken #quickenfreerent – @oceanmuzik

@Quicken I would buy a new fall wardrobe. #quickenfreerent – @joelbrewer

@Quicken Santa will be coming if we get free rent-my son won’t be bumming and sleepin in a tent! #quickenfreerent – @jennsp97

#quickenfreerent I would buy a convection oven. – @t42vek20

The sweepstakes doesn’t end until November 13th so there’s still time to enter! In two steps, you can be on your way to free rent – just in time for the holiday season.

1. Follow @Quicken on Twitter
2. Send a tweet including the #quickenfreerent hash tag

One winner will have their December 2009 rent paid up to a maximum of $2,500! The sweepstakes is underway at http://www.quickenfreerent.com. Full contest rules, terms and conditions, and entry methods are available there. Good luck! Follow @Quicken for the latest updates on how to win FREE RENT.

Profits could be huge. All three banks will charge $10 for every $100 borrowed, a 120% interest rate for those who pay off their loans in a month. By contrast, the average variable-rate credit card charges 11.42% annually, according to Bankrate.com.

But if the banks are making out, payday lenders are doing even better. The average payday loan costs $15 to $30 for every $100 borrowed, at least a 50% premium to what the big banks charge and as much as 400% annually. Why the gulf in the interest rate? Payday lenders typically require borrowers to repay every two weeks. Many don’t, and suffer fees and compounding interest payments as a result.

“When many people get into a financial bind, they go to a payday lending store and borrow a few hundred dollars,” says Ethan Ewing of consumer advocacy and information site, Bills.com. “They plan to repay the loan in a week or two, when they have the money. But they pay a huge price. Payday loans can become a dangerous addiction that can cost hundreds or thousands of dollars a year.”

Credit: aresauburnphotos

If at this point you’re wondering how anyone ever pays off a payday loan, you aren’t the only one. Several states have taken action against the industry in recent years. Virginia just extracted an $85,000 settlement from payday lender Advance America, which it accused of 119 violations of its consumer-finance laws, reports the Richmond Times-Dispatch.

Payday lending’s usurious rates and dubious reputation has inspired advocacy groups and sites such as Bills.com to pitch alternatives for the cash-strapped. Ewing, in particular, sent me eight tips in a press release recently. Here are what I believe are his best two, with my comments below.

1. Talk to your creditor

Creditors want to get paid, and they’d rather get paid at full price. But they lose more if you don’t pay at all, or if your account gets referred to a collection agency. Negotiate first; borrow second. You may be surprised by how willing your doctor will be to establish payments for an uncovered procedure, or what your credit card vendor will do to keep you around.

2. Borrow from a friend or relative

Unlike a payday lender — or, for that matter, a big bank acting like a payday lender — your family and friends care about your well-being, and may be able to help you out on terms that you’ll get nowhere else. But you’re also putting your relationship at risk.

“Don’t use this option unless you know you can pay it back, and borrow only on a rare occasion,” Ewing says. He also advises that the agreement be stipulated in writing, including the repayment terms.

The Great Recession has put millions out of work, and too many are making do with payday loans. Many more could join their ranks now that big banks want a cut of the action. Either way, consumers lose — but only if we accept payday loans as an option. We don’t need to.

Tim Beyers is a professional freelance writer who has been a regular contributor to The Motley Fool since 2003. He is also the co-creator of Editorchat and curator of The Freelance Writer’s Helper. Visit his Website or find him on Twitter, @MileHighFool.