Friday, April 5, 2013

dfree® Tip of the Week

Dear Friend,

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. 

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