America’s poor are taking out multiple high-interest loans each year just to keep the lights on and put food on the table, according to a new report from the Pew Charitable Trusts – 7 out of 10 borrowers use payday loans to make bill, rent and mortgage payments. Further, other high cost borrowing methods such as credit cards are also being used on a regular basis to pay for things as well.
The report surveyed 33,000 adults, with the typical borrower between 25 to 49 with a household income below $40,000, with those making between $15-$25,000 most likely to use payday loans. On average, a $375 loan would cost borrowers about $900 after interest, fees and principal are paid, particularly because ” . . . many borrowers renew a single loan multiple times — and that can lead to five months of debt on average” according to the report.
Currently, the Consumer Financial Protection Bureau plans on creating a national policy for the payday loan industry, which is regulated on a state by state basis.
Story is HERE.
Essentially, the central banks have turned our money into such a farce that dealing with your megabank mortgage lender is dealing with a payday loan establishment, with the only difference being the kind of victim in a banking scam.
We all know that when the banks break and are too big to fail, they get bailed out. We have reached a point where we refuse to do that now, so it means we either sink with the ship or bail the people out like they did in Iceland, as the people realized that the bankers and government were conning them.
The working poor have had their backs broken, and have taken so many blows to the chin that even nature calls for a change. They’re fueling a bunch of financial fraudsters because quite honestly, what opportunities are given to them in this society of lies and economic abuse? What’s especially infuriating is that the politicians like to play with this constituency and throw them an occasional dime to buy a vote – hey, they’ll take care of you with universal health care and mercury laced vaccines while you eat your government dictated list of GMO foods via food stamps.
If we come together and expose the corruption of these figureheads along with their financial criminal partners that we call bankers for all the world to see, then the working poor won’t be subject to con games like payday loans, because there will be increased transparency in our financial and political systems, preventing such bilking of the citizen for the sake of profit. It’s becoming increasingly apparent that our government has failed us, which means we have to step in and begin ruling ourselves. This issue will not be resolved with new regulation, but a call for a new way of life where it won’t be just about survival and just about debt slavery. If people didn’t work and live just to pay off debt we would be significantly happier, more productive, healthier and contributing to society. That is the paradigm we fight for, and the payday loan consumers deserve that too.