“The Poverty Business”

The mentioned companies are making the opportunity divide worst because they target low income people or people who are working but still struggling. The reason why companies do this is the rich have the money to pay back with no problems, but the poor would take longer to pay back or even go into debt. When trying to get a loan, the banks do not tell them what the risks are.  When consumers sign the loan agreement, they don’t read the small print nor look at the interest rates because they need the money fast. The banks just give the consumers the basics. For example, in the “The Poverty Business”, Thomas was trying to get a computer from Blue Hippo. The company told him they would take $124 dollars out of his account by direct deposit and would owe 17 payments after that, which he thought was a good thing. A week later, he didn’t know he would have to pay over a thousand dollars over nine months to get the computer; he called and cancelled the order. The company told him it would take up to ten days to cancel. The company basically gave him the run around and tried to take his money.

I personally believe it is the people who go out and get these loans and/ or expenses because they need the money right then and there. When going to the bank and trying to get a loan, they don’t read the small print because of how bad they really need money. The consumers wonder why they owe so much money when it’s time to pay the money back. It is also the corporations fault because they don’t tell their clients about the interest rates and such things like that; greed is getting the best of them. In order to prevent this from getting exacerbating, the community needs to come together and brainstorm things they could do. Some welfare offices have things like this, such as, financial advisors, non-profit organizations, budget your money, having a savings or checking account, and only use your credit when you really have to.

-Shakila T.