Minority neighborhoods in Durham and elsewhere in North Carolina have three times the number of payday lenders as white neighborhoods of the same size — even taking into account income, age and gender, a Durham organization reported Tuesday.
The lenders, which give short-term, high-interest loans to cash-strapped borrowers, are widening the income gap between black and white families and pulling people into “debt traps,” Mark Pearce, president of the Center or Responsible Lending, said in a conference call explaining the study results. The center is a division of the Durham-based Self Help Credit Union, which makes loans to low-income borrowers. (more…)
In some respects, I am for these types of outfits as many of us do need that extra hand from time to time before payday. However, I would have to say that I am more against these types of businesses than for them as they make it easier to be habitual about borrowing money at high interest. What I totally don’t like is the fact that as the article mentions, these businesses are seen mostly in low-income areas. In short, it keeps the poor POOR.
A while ago, I was approached by someone to buy a “payday” business in Atlanta. I thought about it for about 3 seconds and turned it down. It just did not feel right to me at the time. My feelings have not changed since then.
I dunno, the thought of charging people in the low income bracket high interest just does not seem right to me.
Just my 2 cents (with no interest).
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