Read A Contract!

There are many people who are in poverty and are exploited by businesses who want to make a quick dollar. Businesses charge the poor higher tax rates on loans because of the fact that the profit on taxes alone would build capital faster than the rich paying off the loan.

“Federal Reserve data show that in relative terms, that debt is getting more expensive.  In 1989 households earning $30,000 or less a year paid an average annual interest rate on auto loans that was 16.8% higher than households earning more than $90,000 a year paid.”

Do you think that the fault of these interest rates and debts of poor people or the companies providing the services to the people?

I believe that it is the peoples fault because instead of the people reading the contract before they sign things they decide to listen to a salesman words. Of course they are going to tell you what you want to hear because salesmen get a commission of what they sale you. If they can’t read the contract then they should pay in full or just not get it at all. Companies stay on the poor side because they know that the poor won’t be able to pay in full for any expensive loans. So to capitalize on the market, they go to the poor areas giving loans to all of them just because they know they get residual income. Over the course of 5 years a company would make more money with a person taking out a loan than a person who pays off the item right then. Companies should be more benevolent because then they will get business from both sides of the opportunity divide, both the poor and the rich will benefit from companies being of goodwill. If profit margin is a problem for companies they should think of both rich and poor in my book.