What Is The High Cost Of Being Poor?
Poor people often pay more for things such as loans, and being turned away due to poor credit. In a journal titled “The High Cost of Being Poor” by Gorman, Peter states that “Unfortunately, many poor people, living paycheck to paycheck, are forced to make choices that create more debt. Welfare reforms instituted in 1996 are hitting home with a vengeance, housing programs are being cut back, and financial institutions--from banks to credit card companies--are finding new ways to add fees and jack up rates. Worse, an overhaul of bankruptcy laws that just was enacted into law makes even that extreme measure more difficult to use and considerably more expensive” (Gorman). This statement explains how program funding is being cut back, credit card and other financial institutions are finding ways to penalize and increase rates, and even bankruptcy has become a luxury that the poor cannot afford. The poor and those who have been raised in poverty such as myself, are rich in debt and poor in capital, cultural capital, and social