Two weeks ago, the Center for Responsible Lending published a report that contained a startling statistic - one of every four payday borrowers is a senior citizen receiving Social Security!
Like many vulnerable borrowers, senior citizens are easily tricked into accepting short-term balloon loans from reputable banks. These payday loans, (often marketed under different names), carry average percentage rates of 225 to 300 percent! Seniors borrow to meet short-term needs such as emergency home repairs, assistance for their children, or immediate medical situations, and they become trapped in a long-term cycle of debt.
These predatory lenders bring to mind the moneychangers mentioned in the Bible (Matthew 12:21). Many state legislatures are working to “cast them out"; but until that occurs, you must become informed and knowledgeable about predatory lending, and you must be financially prepared for emergencies.
This weekend, read Matthew 25:1-13; ask God discernment and for strength to be prepared for the unexpected.
DeForest B. Soaries, Jr.