Just Say NO to PayDay Loans!
Kathy Gilbert has a good story about United Methodsit Bishop Minerva Carcaño and her fight again st payday loans. Here’s a taste:
The bishop spoke at a June 4 hearing to brief lawmakers on why all families should be covered by a 36 percent rate cap on consumer loans. Payday lenders charge as much as 400 percent interest on loans that usually average $500. For a $500 loan at 36 percent, fees are $180 over one year; at 391 percent, fees are $1,955 over one year.
The Dallas Morning News reports that in Texas alone payday lenders makes $2 billion in loans every year.
But I can’t help but wonder: what ought the church be doing more than merely lobbying for reform and regulation? As long as our society is so consumerist there is little chance people will drastically curtail their desire to acquire.
The solution to all the debates on payday loans is to educate the masses on living within their means. Budgetting is the only way to prevent over spending and then these loans will not be necessary