If you need to borrow money to cover emergency expenses or make a major purchase, it’s important to choose your lender carefully. A loan offer may sound like it’s just what you need while concealing hidden costs, outrageous interest rates or unreasonable terms for repayment. Unfair or deceptive lending practices are known as predatory lending, and the consequences of accepting a predatory loan can be severe.
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By: Rick Galen
What are the two primary economic inequities facing people of color? We know the list is long, but two things stand out above the rest: access to bank capital and high interest rates on personal loans. Continue reading →
Just four years ago, the median wealth of African American families was $17,600, compared to $171,000 for white families, a problem known as the racial wealth gap. This gap is driven by racial discrimination in legal, financial and educational institutions, commonly referred to as systemic racism. While systemic racism has existed in the US for decades, it’s only relatively recent that researchers have started trying to calculate the losses it has caused.
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In the US, the median Black household has just 10% of the wealth of the median White household, a problem known as the racial wealth gap. A number of solutions have been proposed over the years, including financial literacy courses for Black teenagers and adults to help them learn the skills needed to build wealth. But would these classes alone be enough to close the gap? Let’s review some of the research.
In 1968, President Lyndon B. Johnson signed the Fair Housing Act into law. This act was intended to end the practice of redlining, a term that dates back to the 1930s. At that time, federal agencies denoted certain neighborhoods as “unfit” for investment by marking them on maps with red ink. Residents of these neighborhoods, who were predominantly racial or religious minorities, were unable to secure loans to buy houses or start small businesses.
In 2013, medical debt affected almost 2 million people, making it the top cause of bankruptcy in the US. Even outside of bankruptcy situations, nearly 56 million adults will continue to battle medical debt. That is more than 20% of the population between the ages of 19 and 64. Even with health insurance, Americans cannot always avoid this common cause of serious debt.
After you have been through a financial crisis and worked hard to repair the damage, the silver lining starts to glimmer again. Debt consolidation tools can help move your finances in a stronger direction. Debt consolidation not only can help lower your monthly payments to pay off your bills, but it can help bring your credit score back up, which improves your credit score and can help build confidence.