When I was writing my earlier post on financial literacy I was going to comment of the payday loan industry and the obscene interest rates (which can easily exceed 1,000%) they charge people who are short of cash and have to live from payday to payday.
I understand no security is taken but, as is the case with micro-lending in the the developing countries of Asia, my guess is the default rate is incredibly low. I’d love to see some comparative default stats between these types of debtors and “wealthy” borrowers.
Anyway, I was pleased to see Google taking a stand on this – note the photo below was dated October 2015 but the reference was May 2016 in the Washington Post. Once again, I believe those of us who understand this stuff have a responsibility to alert our clients, their families and their friends to these usury practices.
In the long run this will be good for your business, it is certainly good for your network of contacts and your community, and it is good for the profession, oh and it’s good for you! Click here if you’re interested in how I was lucky enough to marry community financial literacy training with a practice growth strategy in a post I called worthy cause marketing.