When you pay $150,000 for a $600,000 car
TEXAS DEPARTMENT OF HEALTH and Human Services (DHS) announced a new $600 million payday loan program Friday, which will give low-income families access to a wide array of low-cost payday loans and other financial services.
The new program is part of a broader $600 billion effort that includes $400 billion in government spending to promote the use of alternative financial products, including payday loans.
It’s part of President Donald Trump’s administration’s efforts to combat the opioid epidemic and is expected to help tens of thousands of people who’ve been denied government assistance.
The department’s new initiative is part, in part, of the Trump administration’s $600-billion plan to combat opioids, the Centers for Disease Control and Prevention said in a statement.
“In addition to providing a wide range of consumer-facing products, the Department of Health and Human Service will also expand its access to financial products and services to more low- and moderate-income households, including offering payday loans,” the statement said.
The Department of Homeland Security and other federal agencies have been ramping up efforts to provide low- to moderate-priced alternatives to payday loans since the end of the Great Recession, according to the CDC.
According to the program’s website, the program offers payday loans to low-risk borrowers with incomes between 100% and 300% of the federal poverty level, or $23,890 to $63,150.
“The program is designed to provide affordable, safe, and convenient access to credit to families in low-to-moderate income areas across the country,” the department said in its statement.
According the Department, borrowers can borrow between $300 and $1,200 in a month, depending on the type of loan.
The program also allows borrowers to apply to get up to three months of credit after they’ve paid their minimum monthly payment of $400.
If you or anyone you know needs help, call the Lifeline at 1-800-273-TALK.