Research: What does the Bible state about financing practices? So what does Scripture state about high rates of interest?

Research: What does the Bible state about financing practices? So what does Scripture state about high rates of interest?

By Amy Wiles, Special to your Baptist Standard

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The dramatic enhance of payday lender storefronts in Texas has kept some Christians wondering how exactly to respond. Can the church offer solutions?

“Payday loans perpetuate US poverty,” said Bill Tillman, T. B. Maston Professor of Christian Ethics at Logsdon School of Theology in Abilene. We are not in this world to make all we can, but we’re in this world to serve others“If we take Christianity seriously. The authenticity of y our relationship to Jesus is based on the way we treat other individuals.”

Payday advances are small-dollar loans with a high solution costs and interest rates that provide immediate cash without any credit check. These loans, frequently $300 to $500, are guaranteed having a checking that is personal and a site cost. Usually, borrowers spend $20 or higher for almost any $100 lent. In the event that loan is certainly not compensated in complete within 2 to 3 days, then your debtor will pay another solution charge and roll throughout the loan.

A current study carried out by Texas Appleseed, an advocacy team for low- earnings families, found most pay day loan borrowers roll over loans at least one time, and many individuals roll them over numerous times.