Being poor is difficult. Having to live life from paycheck to paycheck with an unsteady job. especially in today’s economy where the unemployment rate is in an obscenely high state. The working poor have been targeted as a business by people whose intent is to become wealthy at the expense of those less fortunate. With the invention of the payday loan, rent to own and other clever hidden taxes. It has become very expensive to stay broke.
Corporations created poverty taxes in which thousands of dollars can be made in extra fees. There are about twenty million Americans without bank accounts today, to cash their checks, they are force to attend small businesses and pay eight to three percent of their paycheck in the exchange. These people have ruined their credit by writing checks without funds. As a result, banks denied them checking accounts or loans. This created an opportunity for small businesses to increase their revenue by taking advantage of the lower class. It is like stealing from the poor.
Another way corporations steal from the poor is rent to own. Rent to own is an advertise scam that claims to be a great opportunity to buy commodities above your social status. It works by allowing people to take home big flat screen TV’s or Lazy Boy furniture as you pay it in small amounts over a few months. However, you end up paying $1,800 in weekly installments for the same television you could have bought for $900 if only you had a credit card. Cant afforded a TV? No problem, the rent to own store has many types from wide to flat screen, but you will end up paying an extra $900 for it.
A small solution is to persuading people to save a small amount of money every week and wait until they saved enough to pay for the item they want in full. In this manner, they would save hundreds of dollars from interest. But ours is a fast-paced society that wants everything in a hurry and is unwilling to weight for it. That is great news for the rent to own businesses and for the payday lenders.
The payday lenders is a large business that is into making large and expensive loans against a person’s next social security check, unemployment check, and if employed paycheck. According to the LA Times people in Tennessee and Kentucky are charge “400 percent interest, but lenders in Missouri are allowed to charge a rate of 652 percent interest on the money they loan out. “ Currently there are not laws setting limits to the amount of interest they are allowed to charge. If a single mother of two kids takes out a loan of $1,000 she will be required to pay $5,000 back, four times more amount she borrowed.
When our founding fathers imagined this country, they did not imagine big corporations designing scams to rob money from the less fortunately. They imagined fairness and equality for all Americans. Payday loan, rent to own, and hidden taxes, are tools corporation used to rob money from poor people, who are not fully awarded they are being robed. On the other hand, they believed these options are convenient and helpful.
good story
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