The Changing Landscape of Black Kansas City Finance and The Decline of Loan Sharks and Payday Loan Businesses in Black Communities Throughout America.
Introduction:
“Leave those loan sharks and payday loans alone! You are voluntarily making yourself a slave to them. I needed them. I know how it is. Kansas City…Missouri has some of the loosest regulations and highest payday loan rates in AMERICA! Average APRs are around 455% to 1,950%! And most people load $50 to $500! At least ‘try’ a black bank or financial institution, like WeDevelopment Federal…” –Kareem Jackson, Publisher Black Kansas City Magazine, Host Buy Black KC Show
This article sheds light on the reasons why you –everyone- should avoid payday loan businesses, loan sharks, and high-interest check cashing establishments, highlighting the positive impact of alternative financial institutions on the community.
Exorbitant Interest Rates: Payday loan businesses and loan sharks are notorious for charging exorbitant, outright outrageous, sometimes illegal, interest rates, trapping you in a cycle of debt. Some payday loan managers we talked to said that “…some of my borrowers, would be paying off as little as $500 to 1,000 for up to 10 years…”
The rates are often purposely, so high that borrowers end up paying off their loans for extended periods, even for small amounts borrowed.
Long-term Financial Burden: crazy high, exorbitant interest rates imposed by loan sharks and payday loan businesses can burden you for years. You may find yourself struggling to meet their basic needs while trying to repay these loans, perpetuating a cycle of financial instability.
Lack of Financial Education: Money is their product, so why would they educate you to improve your financial situation –really?
Loan sharks and payday loan businesses seldom prioritize financial education for their clients. In contrast, banks and credit unions are committed to empowering their customers with knowledge and resources to make sound financial decisions.
Predatory Practices: Why do you think they are called ‘sharks’? Makes you their prey doesn’t it? Loan sharks and some payday loan businesses have been known to employ predatory practices, taking advantage of individuals in dire financial circumstances. They often target vulnerable populations with deceptive advertising and unfair loan terms.
Absence of Credit Building: We understand, things happen, and in crisis or for the short-term these sharks can be ok.
But, using loan sharks or payday loan businesses DOES NOT contribute to building your credit history. In fact, on the contrary, banks and credit unions offer opportunities for individuals to establish creditworthiness, leading to better financial prospects in the future.
Limited Financial Services: Loan sharks and payday loan businesses primarily focus on providing short-term loans and check cashing services. This limited range of services fails to address your broader financial needs, nor the needs of the community as a whole.
Community Empowerment: With the emergence of banks and credit unions specifically targeting the black community, residents now have access to financial institutions that prioritize community empowerment. These institutions often offer financial literacy programs, community outreach initiatives, and investments in local businesses.
Enhanced Economic Stability: By diverting your financial activities away from loan sharks and payday loan businesses, you contribute to the overall economic stability of the black community. This shift allows funds to circulate within the community, fostering growth and development.
Alternative Loan Options: Banks and credit unions offer a range of alternative loan options, such as personal loans, small business loans, and mortgage loans, with more favorable terms and interest rates. These alternatives provide you with the opportunity to achieve your financial goals without falling victim to exploitative practices.
Building a Financially Resilient Community: By choosing banks and credit unions over loan sharks and payday loan businesses, the (entire) black community in Kansas City can finally work toward building financial resilience (not just for a select few).
Community-wide access to fair and transparent financial services encourages savings, investment, and long-term economic security.
Conclusion:
Black Kansas City is leveling-up, up, and moving away from the sharks.
“These are just a few of the loan sharks and payday loan businesses just along one road in Kansas City’s Eastside.”
Open your account and gain access to loans at WeDevelopment Federal Credit Union: www.WeDevelopmentFCU.com
The shift in Urban Finance within Black Kansas City’s eastside is now evident.
We know the truth now.
We are all aware of the detrimental impact of loan sharks, payday loan businesses, and high-fee check cashing places.
This knowledge has paved the way for the rise of ‘black’ banks and credit unions, such as WeDevelopment Federal Credit Union (www.WeDevelopmentFCU.com).
WeDevelopment Federal Credit Union (WDFCU)
Branch: 3123 Prospect Ave, Kansas City, Missouri 64128
Build your legacy with your WeDevelopment Wealth Partner.
Hours of Operation
Mon–Fri: 9 a.m.-5 p.m. CT
Except on Holidays
Call us at 816-266-1003
Llinkedin.com/company/wedevfcu/
Email: branch@wedevelopmentfcu.com
Through education, community outreach, and access to a broader range of financial services, you are empowered to make informed decisions, ultimately fostering financial stability and growth within the community.
Wanna Read More?
Starland News: A new credit union on Prospect aims to be the pebble that causes a ripple effect east of Troost (https://www.startlandnews.com/2023/02/wedevelopment/?fbclid=IwAR0iO7rkpxy_lluMtWJ4g9z-JPGDoiussrzwHE33gSD7I-AygLha9Xiw-3A )
See more on Black Kansas City Shark Attack and picture credits: www.cco.org Facebook.com/WeAreCCO/videos/257809091589310
