3 ms·

I'm disappointed that this is the top rated comment. "than need to rely on payday loans, car title loans, or have no access to emergency money at all" You'll

I'm disappointed that this is the top rated comment. "than need to rely on payday loans, car title loans, or have no access to emergency money at all" You'll get no argument from anyone but the purveyors of such predatory products. But it's a false dichotomy argument along the lines of "you have to overlook all of the evil things Uber does because they're the only option for people going to poor neighborhoods." The reality is that both of these things are true - credit cards are the best option for emergencies, AND that consumers (not just the poor ones) are encouraged to outspend their means, often finding themselves falling into catastrophic debt spirals. I didn't bother reading the article, so I can't say whether or not its guilty of virtue signalling. But if it does in fact explain how they "Justified Piling Debt on Poor Customers", it's eminently reasonable to overlook any virtue signalling.

Aloha 7y ago
My suggestion was to change bankruptcy law so these products are less predatory - the fact that its very very hard for the poor to discharge excessive debt via bankruptcy is a huge issue and traps people in a cycle of poverty. Access to credit, real revolving credit, is a boon to the poor, if you can teach yourself the skills to use it wisely, it can provide that cushion that you otherwise wouldn't have. I literally started over again at 27, with my slate clean by waiting 7 years, then I started fresh with a secured card from C1, and built my credit from there - but at some point about a decade ago, I used one of my cards to put tires on my car, which ensured that I had a functional vehicle to continue to use to work - even though I was not of traditional credit worthiness, that purchase allowed me to keep that job, and gave me the skills to find a far better one later. Yes, some do fall into a perpetuity trap, but we need to fix the system to allow for an escape for that, not just change the system so you cant take any risk at all.

Aloha 7y ago

My suggestion was to change bankruptcy law so these products are less predatory - the fact that its very very hard for the poor to discharge excessive debt via bankruptcy is a huge issue and traps people in a cycle of poverty. Access to credit, real revolving credit, is a boon to the poor, if you can teach yourself the skills to use it wisely, it can provide that cushion that you otherwise wouldn't have. I literally started over again at 27, with my slate clean by waiting 7 years, then I started fresh with a secured card from C1, and built my credit from there - but at some point about a decade ago, I used one of my cards to put tires on my car, which ensured that I had a functional vehicle to continue to use to work - even though I was not of traditional credit worthiness, that purchase allowed me to keep that job, and gave me the skills to find a far better one later. Yes, some do fall into a perpetuity trap, but we need to fix the system to allow for an escape for that, not just change the system so you cant take any risk at all.