Traps that Keep You Poor

There are traps, both self-inflicted and designed by others, to keep you poor. While it may not be intentional in either case, it certainly works that way in actuality. It can be extremely difficult to release yourself from poverty, whether it was caused by your own mistakes, or circumstances out of your control.

In America, it is much easier to get out of poverty than in many other places in the world. Even if we're in a deep recession, Americans still have better opportunities than most. It's only a matter of finding those opportunities, and using them to your advantage.

But that is for a different article. Here I want to focus on the traps we get ourselves into that keep people in poverty.

These are just a few things that are designed to part you with your money, and keep you paying more and more and more, in a never ending cycle. These pray on people's weaknesses and some prey on a persons poverty and desire for a better life.

Rent to Own

Rent to Own types of stores prey on people who can't afford to pay for nice furniture, computers, TV's and other household items. They offer a low weekly price, but you need to sign a contract, and eventually, if you end up making all the payments(sometimes for up to two years or more, you will have eventually paid at least twice the regular price for the item, and sometimes even more.

These companies specifically target people who can't afford these things in the first place. This is obvious, or the buyer would choose to purchase their stuff at a normal price, with better selection if they could afford it in the first place. They also offer to finance people with poor or no credit. Then they will proceed to harass your friends and family(who you had to provide as references) relentlessly if you miss a payment.

The best way to deal with these vultures is to not deal with them at all. The solution? If you can't afford furniture, TV, computer or whatever, the work on ways to get them cheaper. save up your money until you have enough, look for items at used stores, yard sales, or wait for a really good sale if you want the item new. If you can't afford to buy something, wait until you can.

Pay day Loans

A pay day loan is a small loan that you can get from private companies, like a cash advance on your next paycheck. Except they charge fees of up to 30 percent in some cases, but usually at least 15 percent of the loan.

While this is legal in most places, it is still a trap that will keep you poor if you have to keep going back because a large chunk of your money is being eaten up in finance charges. This is again preying on poor people. People with money wouldn't need to do it. They prey on desperation.

Avoid pay day loans by any means possible. Try to work out financial difficulties by any other legal means possible. Getting caught in the pay day loan trap will only keep you broke, if you repeatedly go back, because it seems like the only way to get out of a financial difficulty quickly.

Try to raise cash in other ways. Maybe you can have a yard sale, or get a second part time job to tide you over, or try to cut expenses if you can.