Comments on: Restricting Credit for Poor People http://www.showmedaily.org/2010/01/restricting-credit-for-poor.html Advancing liberty with responsibility by promoting market solutions for Missouri public policy Fri, 10 Feb 2012 02:56:48 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: John Payne http://www.showmedaily.org/2010/01/restricting-credit-for-poor.html/comment-page-1#comment-4957 John Payne Fri, 08 Jan 2010 05:52:46 +0000 http://www.showmedaily.org/?p=11500#comment-4957 People's financial literacy will not evolve unless they have some incentive to know more about what they are buying. Ergo, the more the government restricts people's economic choices, the less financially literate they will be. People’s financial literacy will not evolve unless they have some incentive to know more about what they are buying. Ergo, the more the government restricts people’s economic choices, the less financially literate they will be.

]]> By: Papillon http://www.showmedaily.org/2010/01/restricting-credit-for-poor.html/comment-page-1#comment-4917 Papillon Thu, 07 Jan 2010 15:46:39 +0000 http://www.showmedaily.org/?p=11500#comment-4917 My beef with the payday loans is not the interest rate, but the lack of transparency, so fees/charges etc. get expensive quickly. Agreed, that people should be more sophisticated about this, but people should be more a lot of things. Until our financial literacy as a culture evolves into a place where people really know what they are getting into, I don't have a problem with caps. As a reminder, some robbers carry fountain pens. In contrast, check cashing places have their rates clearly posted, so that you know how much you are giving up for the quick cash. It also allows for easy comparison shopping. My beef with the payday loans is not the interest rate, but the lack of transparency, so fees/charges etc. get expensive quickly. Agreed, that people should be more sophisticated about this, but people should be more a lot of things. Until our financial literacy as a culture evolves into a place where people really know what they are getting into, I don’t have a problem with caps. As a reminder, some robbers carry fountain pens.

In contrast, check cashing places have their rates clearly posted, so that you know how much you are giving up for the quick cash. It also allows for easy comparison shopping.

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