Payday Loans

While doing some research I came across a article about payday loans. A payday loan is basically a loan given to you, before you get paid, once you get paid you pay it back, with interest of course. Well a few states are saying "No" to these loans centers. Some of the loan centers have charged up to 500% interest. The D.C. Council is trying to pass a law that would reduce this to 24% across the board, which is more like what banks charge.

So why would I write about this issue, if it even is an issue. Well some are claiming that the loan centers prey on economically deprived neighborhoods, and that they are heavily staged in Black communities. These loan centers are a business. They give loans, to make a profit. The people that use these centers have a choice to use their service or not. One reason I can see for the large amount of loan centers and check cashing services is because a large portion of the Black community doesn't have a checking or saving account, which is our own fault. We can't contniue to blame others for our finacial situation. No one is forcing a person to take out a $500 loan at 20% interest. We have to educate ourselves and our children, so they can understand the value of a dollar.

Another problem people have, is what they spend their money on. We buy things we don't need and place ourselves deeper in debt. The difference between wealthy and poor people is the wealthy person understand the value of a dollar, and the wealthy person has to justify a purchase; for example Warren Buffet rents G5 jets, even though he can purchase one for around $30million dollars, but Warren Buffet can't justify the expenditure. Thats our problem, we will purchase a $50,000 SUV, and live in a apartment. Thats the wrong answer, but we dont seem to understand that.