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It's Expensive to be Poor

If you have good credit and a good paying job, then you will be able to buy products and services at much lower prices then if you didn't have these resources. There are millions of American families that are at or near the poverty lines and are just barely making it from paycheck to paycheck.

Some of these people make too much money to receive government assistance, and too little money to provide for all the needs of their family. There are several businesses that cater to these individuals, but charge high prices for the financial products they provide.

There are a great deal of financial services that some people can take for granted because of the credit rating they might have. Although, for people who don't have good credit they have to pay a higher cost for the same services.  For them, it becomes a vicious cycle, of credit debt and working just to make minimum payments on their bills. Thus struggling for several years just to try to pay back the debt they have accumulated.

Below are a few examples
  • Furniture Rental Stores: These stores rent/sell you low-quality overpriced furniture.
  • Prepaid cellular and phone cards: The more minutes you buy will reduce the price that you pay, but these minutes can be expensive. Especially when you compare it to a regular cellular plan.
  • Check cashing and cash advanced services: Charge high finance fees, for cashing a paycheck.
  • Secured Credit Cards: Charge high credit card fees for making purchases against money that you pre-deposit into your account.
  • Easy/No Credit: Several businesses offer these services, but charge incredible high finance fees and interest.
2nd Class Citizens

If you don't have credit or a credit card, you are pretty much treated as a second class citizen in today's society.  For example, if you don't have a credit card you will have problems renting a hotel room or a car. If you don't have credit, you will have to pay higher interest rates for things that you want to buy.

Some of the problems are:
  • High health insurance costs (effects everyone even those with insurance).
  • Fewer tax breaks for single parents or people who are unmarried.
  • Low paying jobs, without health benefits.
  • Lotteries feeding off the hopes of desperation of people, looking for a quick fix to their problems.
  • Fraudulent credit repair services that make big promises they can't keep, and sometimes making the problems worse.