Then they get hit with an unexpected $1k medical bill. They now default on your shoe loan, and the coat loan, and the car loan, and the rest of the microloans.
Poor people generally don't have access to capital except at incredibly high APRs that typically make things worse, not better.
if they were going to get a medical bill, they would've been in the same, or worse position. They would've been without a shoe, instead of with a shoe and face default on the shoe loan.
Poor people generally don't have access to capital except at incredibly high APRs that typically make things worse, not better.