Economist discusses the detriment of payday loans and title loans
TYLER, Texas (KLTV) — During the East Texas Human Needs Network’s Fair Lending luncheon, an economist spoke about the detrimental effects of payday loans and title loans on low-income people and Tyler’s economy.
The luncheon was held Thursday at the West Campus of Tyler Junior College.
“To get these loans you have to have a job or you have to have a car unfortunately what this process can do is if they get caught up in the cycle it pushes them into poverty so not only they don’t improve the situation, they push people into poverty,” said Dr Ray Perryman.
Perryman also explained how payday loans target low-income people.
“The advertising is very focused on these groups, it’s focused on trying to get these groups to use these services.”
Perryman, an expert economist with the Perryman Group, was a special speaker at the event. He talked about the ill effects of payday loans and land titles and how they bring down the economy. He also touched on the fact that these types of lenders target specific low-income groups.
The East Texas Community Lending Center helps those currently in debt and also offers alternatives to payday loans, such as credit solutions, loans, and financial counseling.
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