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Yep... Even car sales increase because people have money for the down-payment. A large population of Americans do not have much savings. Could be bad money man
by fma 8y ago
Yep... Even car sales increase because people have money for the down-payment.
A large population of Americans do not have much savings. Could be bad money management, low paying jobs, bad luck (health issues) etc.
- ianai 8y agoPhht, bad money management. When loan sharks are peddling 450% payday loans people are being taken advantage of by corporations. The government needs to practice better money management, not us private citizens. Close tax loopholes.
- xiphias2 8y agoActually both. It was crazy when I read from a person that he preferred paying his rent over eating, but it actually makes sense: if you get to the street, and not able to clean yourself, the chances of getting a job goes down dramatically.
- toast0 8y agoIf you get evicted, you're going to have a lot harder time getting into another apartment, too. It's also a lot easier to get help with food than to get help with a place to live.
- toasterlovin 8y agoAlso food is insanely inexpensive. Doesn’t come anywhere near cost of housing unless you have a large family.
- rootusrootus 8y agoI would definitely pay rent first, always. There are food banks to keep you from starving to death, but without a roof over your head your life is going to completely fall apart.
- deleted 8y ago[deleted]
- Spooky23 8y agoUsurious loans are unethical and disgusting. If people aren’t capable of effective money management, that just reinforces that the justifications used by that agency are bunk.
- apta 8y agoPractically all owns today are usurious, since interest is involved. If you look at the old testament and the Quran, this was prohibited for a reason, and we see the effects today very clearly.
- romski 8y agoWhy would anyone lend money without interest?
- colejohnson66 8y agoShould probably add: why would anyone lend money without interest to someone they don’t know?
- darkpuma 8y agoRight, lending money without interest is pretty common within families and trusted friendships. But obviously the amount of credit available loan free from friends or family is going to be significantly less than what a financial institution would give you.
- ianai 8y agoBecause there’s a very substantial system of laws and governance enforcing the terms of the loan.
- colejohnson66 8y agoBut if there’s no money to be made, why would a business bother?
- gmanley 8y agoYou'll find payday loans at upwards of ~1700 percent, depending on state regulations. It's pretty ridiculous.
- toasterlovin 8y agoI’m sure the default rate is also pretty ridiculous. That’s what the APR is paying for, after all.
- ianai 8y agoProbably not as much as you think. People often take out further loans to pay their payday loans. It becomes a self fulfilling system.
- toasterlovin 8y agoCan you seriously not see how tremendously high the default rate would be on a loan to someone who can’t wait the few days until their next payday? Or how high it would be if they’re using that loan to pay off another payday loan? If you could provide those loans for cheaper, there would be competitors hoovering up the free money.