In Debt We Trust Summary
In Debt We Trust
1. Discuss the high cost of being poor.
The black gentleman at the beginning of the video showed the cost well. He claimed he could not get a bank account, because the banks give him the run around saying he should have three hundred dollars to get a bank account. When you do not have a bank account and you get a check then you have to find other ways. Being poor means you are not only judged, but you end up paying more for the same goods. Poor people are targeted by Rent-A-Center and no credit places.
2. How do poor people end up paying a lot of money just to get their money?-
When poor people are targeted by “no credit” and “get your money today” places. These places make the poor person indebted to them. For example Rent-A-Center furniture will cost two times or more than the retail price. If you miss payments then they …show more content…
repossess your furniture. To cash a check they must go to places that are shady and claim “get your cash today”. These places have an interest rate of 40% to 700%.
3.
How do corporations arguably profit more from poor customers than from middle income or wealthy consumers?
They have found that the poor are more honest and try harder to pay off debts. They target these poor communities by sticking Rent-A-Center right in the middle of them. People with a middle income or wealthy consumer can easily buy furniture and with less of a cost to them. They save up and pay the full retail price instead of paying hundreds of dollars more like the poor.
4. What obstacles prevent lower income people from getting out of debt?
Places such as Rent-A-Center drawing them in and once they owe the money then they must pay them and not save. Everywhere lower income people go they end up paying more. They cannot save because once they put a small payment down on their debt then the interest is what really gets them. After they pay for their essentials and probably are paying more to rent to own a home, then they have no money left to save. This means they have no advantage to pay their debt off faster so their interest grows.
5. What systematic changes might help low income people improve their economic
status?
If the lower income individuals were not pressured by the allure of lower prices when in all actuality they would be paying hundreds of dollars more for the same services and products as higher income people. The banks treat them differently than people of a higher income. If places and services would just treat them like regular people and give them the same advantages, then the problem would slowly solve itself with the help of less government assistance.
1. Discuss the high cost of being poor.
The black gentleman at the beginning of the video showed the cost well. He claimed he could not get a bank account, because the banks give him the run around saying he should have three hundred dollars to get a bank account. When you do not have a bank account and you get a check then you have to find other ways. Being poor means you are not only judged, but you end up paying more for the same goods. Poor people are targeted by Rent-A-Center and no credit places.
2. How do poor people end up paying a lot of money just to get their money?-
When poor people are targeted by “no credit” and “get your money today” places. These places make the poor person indebted to them. For example Rent-A-Center furniture will cost two times or more than the retail price. If you miss payments then they …show more content…
repossess your furniture. To cash a check they must go to places that are shady and claim “get your cash today”. These places have an interest rate of 40% to 700%.
3.
How do corporations arguably profit more from poor customers than from middle income or wealthy consumers?
They have found that the poor are more honest and try harder to pay off debts. They target these poor communities by sticking Rent-A-Center right in the middle of them. People with a middle income or wealthy consumer can easily buy furniture and with less of a cost to them. They save up and pay the full retail price instead of paying hundreds of dollars more like the poor.
4. What obstacles prevent lower income people from getting out of debt?
Places such as Rent-A-Center drawing them in and once they owe the money then they must pay them and not save. Everywhere lower income people go they end up paying more. They cannot save because once they put a small payment down on their debt then the interest is what really gets them. After they pay for their essentials and probably are paying more to rent to own a home, then they have no money left to save. This means they have no advantage to pay their debt off faster so their interest grows.
5. What systematic changes might help low income people improve their economic
status?
If the lower income individuals were not pressured by the allure of lower prices when in all actuality they would be paying hundreds of dollars more for the same services and products as higher income people. The banks treat them differently than people of a higher income. If places and services would just treat them like regular people and give them the same advantages, then the problem would slowly solve itself with the help of less government assistance.