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It’s expensive to be poor! True or False? Is life really expensive for America’s poor? I could never imagine it until I have read an article published on September 5, 2015 in “The Economist”, a journal published from United Kingdom. The title of the article is thought provoking too. It is as follows: Quote…Why low-income Americans often have to pay more…unquote. And according to the article, among others, it transpires that banking is too expensive for nearly one in three whose income is less than $15,000 a year. ‘More than half of this group says banking is too expensive for them. Many cannot maintain the minimum balance necessary to avoid monthly fees; for others, the risk of being walloped with unexpected fees looms too large.’ Is it really expensive to be poor in America?           |
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I am really surprised to read the report!
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Thanks for stopping by and for your response! I have no problem with this article as it is based on facts! Wonder, Why you have mentioned that being poor ain't easy or enviable......! Have a nice weekend,Mary Ann.
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Thanks for your detailed comments on the Post. I appreciate. I also take this opportunity to quote an extract from the article for your kind and ready reference! Quote…… Doing without banks makes life costlier, but in a routine way. Cashing a pay cheque at a credit union or similar outlet typically costs 2-5% of the cheque’s value. The unbanked often end up paying two sets of fees—one to turn their pay cheque into cash, another to turn their cash into a money order—says Joe Valenti of the Centre for American Progress, a left-leaning think-tank. In 2008 the Brookings Institution, another think-tank, estimated that such fees can accumulate to $40,000 over the career of a full-time worker. Pre-paid debit cards are growing in popularity as an alternative to bank accounts. The Mercator Advisory Group, a consultancy, estimates that deposits on such cards rose by 5% to $570 billion in 2014. Though receiving wages or benefits on pre-paid cards is cheaper than cashing cheques, such cards typically charge plenty of other fees.....Unquote I feel that it is now time to re examine the charges that are being realized from the clients by the banks---not only in your country---but everywhere throughout the world! Beast wishes. Have a pleasant weekend!
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I am inclined to accept your views about unseen economy but it is another subject that needs to be examined carefully! Thanks again.
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Agreed that credit card companies are assuming risk! But such risks are worth taking if you take into account the percentage of losses that are usually being sustained by these companies due to turning of such credits bad or unrecoverable!
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Delighted to read from you here on my blog after a considerable time. I appreciate. It seems that your bank and some other Canadian banks do not charge any fees from their clients when they turn Sixty! This seems a wonderful thing to me. Thanks again for your comments , Maggie. Have a nice Sunday.
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Poor people become prey for some who take advantage of their plight. Among the predators are "pay day" lenders, pawn shops, auto title loans among others. Attempts to regulate these predatory practices have been faught at every turn by conservative politicians...a fact conservatives are reluctant to admit. Republicans, unfortunately, care nothing about the poor. They are the handmaidens of the wealthy.
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Maisie, it is high time for all of us now to give attention to such problems without bothering about our party affiliations! We all should agree to save people from getting trapped "in the cycle of debt in pay day loans, higher Fees, and predatory lending" as pointed out by you at above! Thanks for participating. Your comments have enriched this blog of mine! Have a nice Sunday.
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At the Credit Union I deal with, for $25. you can open an account. That's far less than those pay day loan companies charge for their services, yet those cheque cashing sharks still seem to thrive!! Grrrrrr......
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At the Credit Union I deal with, for $25. you can open an account. That's far less than those pay day loan companies charge for their services, yet those cheque cashing sharks still seem to thrive!! Grrrrrr......
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