Income from charging high interest rates will end up in the pocket of someone who is kind to the poor
“Payday lenders average interest on a loan to a low income person is 574 percent, we are the third highest in the nation.”
Example of the high interest rates for the poor:
Ramon Zayas was suffering from prostate cancer and facing mounting bills.
“I had to pay the electric bill, or have the lights turned off,” Zayas said.
So he and his wife got a $250 payday loan from an online lender 500 FASTCASH. It charged an annual interest rate of 476 percent. Zayas thought he was paying off the loan, but confusing fees, and the high interest eventually pushed the cost to $125 a month – on a $250 loan. Like a lot of people, he couldn’t keep up with the soaring costs.
“I borrowed $250, I thought I was going to pay $325,” Zayas said. “I actually paid $700, but it would have been $1,100 had I not gone to the bank and put a stop to this.”
Because of cases like this, 17 states have effectively banned payday lending. But Ramon Zayas’ lender is shielded from state laws because 500 FastCash is owned by an Indian tribe. Today, an estimated 30 online payday lenders partner with American Indian tribes.
I can’t even imagine paying this type of interest, I have heard of this but to see it in black and white is shocking. Yet our leaders are allowing this to go on. Even allowing loop holes for the pay day loan industry to get around the unfairness of charging such high interest rates to those who are already struggling. Yikes!!!
This goes on every day without fail and the poor are getting poorer!
Greedy people try to get rich quick but don’t realize they’re headed for poverty Pr. 28:22
Greed causes fighting; trusting the LORD leads to prosperity Pr. 28:26
Those who trust their own insight are foolish but anyone who walks in wisdom is safe Pr. 28:26
When there is moral rot within a nation, its government topples easily. But wise and knowledgeable leaders bring stability. Pr. 28:2
Memory Verse: Proverbs 28:20 “The trustworthy person will get a rich reward, but a person who wants quick riches will get into trouble.”