The New Financial Scam Driving Workers Deep Into Debt

I did this for AlterNet: The New Financial Scam Driving Workers Deep Into Debt,

If you can lure people into borrowing then you own them, sometimes literally—it’s a game as old as money itself.

Regular people don’t know much about money, loan terms or the trap of debt-slavery. This enables predators to dangle loans in front of desperate people and entrap them into various forms of financial and even actual servitude. Again and again schemes and scams pop up that trick people into borrowing. Of course, we all know how the credit-card trap has ensnared millions. Car loan terms have gone from two to three and now as long as five or even six years because people think a lower monthly payment is a good thing. In recent years we’ve seen “subprime” mortgages and payday lenders entrap borrowers. Now there is a new predatory lending scheme in operation called “workplace loans.” Keep an eye out for this, it is just one more way for the financial industry to lure workers into debt slavery.

But also keep an eye out for a different form of workplace loan that can actually help employees.

Read the rest at AlterNet.

Leave a Reply