Micro Credit II

In 2006 the Brookings Institution documented what they called the "ghetto tax," or higher cost of living in low-income urban neighborhoods. A few examples

 

Poor people are less likely to have bank accounts so they tend to cash their pay checks at check-cashing businesses which in cities surveyed charge $500 to $50 for a $500 check.

 

Low-income car buyers pay 2 percentage points more for a car loan than the more affluent buyers.

 

Low-income drivers pay more for car insurance. In New York , Baltimore , and Hartford , they pay an average $400 more a year to insure the exact same car and driver risk as wealthier drivers.

 

Poorer people pay an average of 1 percentage point more in mortgage interest.

Low-income folks are more likely to buy their furniture and appliances through pricey rent-to-own businesses. In Wisconsin , the study reports, a $200 rent-to-own TV set can cost $700 with interest included.

 

They are less likely to have access to large supermarkets and hence to rely on the more expensive and lower quality offerings of small grocery and convenience stores.

 

Without health insurance they use the emergency room which we all pay for.

 

Lacking the $1,000 for the first month's rent and security deposit for an apartment puts some in places like Days Inn for $40 a night.

 

Question:

 

Sevier County has plenty of working poor. Do you know if anyone has considered a subsidiary or stand alone office to provide Micro Credit type loans for them. I am sure everything is not rosy but there are success stories in poor countries.  Micro Credit could let families move from motels and shelters to apartments.