Culture of Consumption & Credit
"We live a world of immediacy—instant messaging, instant access, instant purchase power. American culture no longer values saving for a purchase until it can be paid for in cash. The ‘buy now, pay later’ philosophy is at the heart of the predatory lending crisis." – Nelson Merced, Director of NeighborWorks America
Lending practices that are deceptive, discriminatory, and unfavorable.
Often the targets are the working poor, elderly, veterans, minorities, single parents, and those desperate for help. Interest rates are often crippling and push people further in debt.
- Triple digit interest rates
- Short minimum loan term
- Single balloon payment
- Loan roll-overs
- Simultaneous borrowing
- No consideration of bower’s ability to pay back
- Deferred check mechanism
Sometimes it’s necessary to borrow for major purchases like an education , a car, a house, or maybe even to meet unexpected expenses. Be careful to keep your credit history strong.
- Pay credit card balance in full every month
- Pay credit card bill on time
- Keep track of charges
- Don’t charge what you can’t afford to pay off every month
Credit is important because it can affect your ability to take out a loan, interest rates, insurance, purchasing cars, cell phones, a house, rentals, and even future jobs. What is it?
- Numeric value applied to your credit history
- FICO score is most common (300-800)
- Reflects you credit worthiness
- Check your credit score free at annualcreditreports.com