Mississippi’s legacy of poverty is prevalent throughout the state, particularly in communities of color. Predatory lenders – including payday lenders, check cashers, title loans companies, and others – find an environment ripe for preying on the working families and the elderly who find it financially difficult to pay for basic necessities. The impact of predatory lending is compounded by a policy environment that offers few consumer protections. Repeatedly, the fabric of low-income communities of color are torn apart because, while they own fewer homes in Mississippi, theirs are twice as likely to be foreclosed due to disparities of income and the lack of an inclusive financial infrastructure that allows for fair and competitive loan products.
Educational attainment does help change this landscape. Mississippians with college degrees are less likely to experience financial hardship than Mississippians who only have a high school diploma. However, there has also been a spike in problematic student loan debt stemming from expensive for profit colleges in Mississippi. In Mississippi, the fees associated with being poor adversely affect single mothers and communities of color, keeping them entrenched in a cycle of debt that has a negative effect on their children’s education, health and overall well- being. The need for reform has never been greater.
If you are in the market for a loan product and would like to make an informed decision, you can visit the Consumer Financial Protection Bureau website.