Now here’s proof! Lower income groups pay more for services than rich
While payday loans are bad in general, they are especially disastrous in the case of lower-income families. A recent report by the Brookings Institution concludes that low-income families generally pay more than upper-income families for the same consumer item or service, largely because they rely on alternative providers like check-cashers, pawnshops and rent-to-own stores. Buffalonews.com reports:
The report said reducing these extra costs of living for lower-income families by just 1 percent would give them more than $6.5 billion they could use to buy a home, save for retirement or pay for education and health care for their children.
Read more: Report urges curbing abuses against poor