Payday loans don’t suggest this. Those are predatory businesses aimed at the poor and desperate.
When you’re one month from disaster and you break a leg, it’s a payday loan or your family doesn’t have a home/food when you work a job without paid leave. And good luck with the disability approval, because even if it eventually comes through, you are on the hook until it does.
Being poor has very little to do with budgeting. I’m sure a substantial portion, if not the majority of them, could figure out how to budget with a $100k income instead of a $30k income.
I agree. My point was that rich people don’t take payday loans, but i recognise that not being able to afford a safetly cushion doesn’t necessarily imply bad planning.
Some do, depending on their circumstances. But when you’ve got a big income it’s easier to get out from under the debt.
Most rich people just use credit cards, though. They’re arguably worse than payday lenders, since the credit limits are much higher. But they’re also very risk averse, so they don’t extend credit to the lower income groups.
Payday lenders and other loan sharks have to spend more on collections and run tighter margins as a result. Far easier to be a credit card company and simply wage a finger at someone’s credit rating to extort payment than to actually execute a repo.
Payday loans don’t suggest this. Those are predatory businesses aimed at the poor and desperate.
When you’re one month from disaster and you break a leg, it’s a payday loan or your family doesn’t have a home/food when you work a job without paid leave. And good luck with the disability approval, because even if it eventually comes through, you are on the hook until it does.
Being poor has very little to do with budgeting. I’m sure a substantial portion, if not the majority of them, could figure out how to budget with a $100k income instead of a $30k income.
I agree. My point was that rich people don’t take payday loans, but i recognise that not being able to afford a safetly cushion doesn’t necessarily imply bad planning.
Some do, depending on their circumstances. But when you’ve got a big income it’s easier to get out from under the debt.
Most rich people just use credit cards, though. They’re arguably worse than payday lenders, since the credit limits are much higher. But they’re also very risk averse, so they don’t extend credit to the lower income groups.
Payday lenders and other loan sharks have to spend more on collections and run tighter margins as a result. Far easier to be a credit card company and simply wage a finger at someone’s credit rating to extort payment than to actually execute a repo.
Seems like you agree