America's Poor and Finance

A study was done found that some 17 million adults were "unbanked." This means that they lack a current checking or savings account. Also, it found that 1 of every 5 adults they are "underbanked." This means that they have a checking account but rely on other financial services as well. They say the problem is that credit companies are hurting the poor and something needs to be done. These mostly include payday companies. This is where they get quick cash loans on credit or their car loan. They also found out that the average payday lender takes out about 11 loans per year that could result in them paying 400%+ in interest! Alot of politicians are trying to take care of the problem. One of the solutions is that banks are going to pre-paid cards to help the poor. I think this a great idea for the banks to do. The poor need to be given help not let credit companies pray on them.