Yusra3
VIP Contributor
Payday loans are a way to get money when you need it, but they can also be a trap.
Many payday loan lenders target women of color because they believe that they are more likely to take out a loan than other people. In fact, they're right. women of color are more likely to end up in debt with a payday loan than women who aren't part of these groups.
But what's even more interesting is how these lenders go about targeting women of color. They do it by making the payday loans cheaper and more available, which means that the cost is just too low for them not to take one out. And if you're part of an underrepresented group, then there may be fewer resources available for you in your community or at school or simply in your home that could help you avoid taking out a cash advance.
The result? Women who are already struggling might end up borrowing money from strangers or getting behind on bills because they didn't know how much the loan would cost them until after the fact.
The average woman of color living in poverty has an annual income of just $12,000 and that's before taxes are taken out. When you add the cost of housing into the equation, it puts women at risk for being unable to pay back loans in full and then having to make up the difference by selling things like their car or taking out another loan.
Using a payday loan can be a good way to get through a rough patch if you're struggling with money but don't want to sacrifice your future savings or retirement funds. But make sure you understand how much interest will be charged on this type of loan before signing on the dotted line!
Many payday loan lenders target women of color because they believe that they are more likely to take out a loan than other people. In fact, they're right. women of color are more likely to end up in debt with a payday loan than women who aren't part of these groups.
But what's even more interesting is how these lenders go about targeting women of color. They do it by making the payday loans cheaper and more available, which means that the cost is just too low for them not to take one out. And if you're part of an underrepresented group, then there may be fewer resources available for you in your community or at school or simply in your home that could help you avoid taking out a cash advance.
The result? Women who are already struggling might end up borrowing money from strangers or getting behind on bills because they didn't know how much the loan would cost them until after the fact.
The average woman of color living in poverty has an annual income of just $12,000 and that's before taxes are taken out. When you add the cost of housing into the equation, it puts women at risk for being unable to pay back loans in full and then having to make up the difference by selling things like their car or taking out another loan.
Using a payday loan can be a good way to get through a rough patch if you're struggling with money but don't want to sacrifice your future savings or retirement funds. But make sure you understand how much interest will be charged on this type of loan before signing on the dotted line!
