Rental America: Why the poor pay $4,150 for a $1,500 sofa

Tuesday, October 21, 2014

No credit, no cash, no bank account? There’s still a place to go shopping, but it comes at a price.

The love seat and sofa that Jamie Abbott can’t quite afford ended up in her double-wide trailer because of the day earlier this year when she and her family walked into a new store called Buddy’s. Abbott had no access to credit, no bank account and little cash, but here was a place that catered to exactly those kinds of customers. Anything could be hers. The possibilities — and the prices — were dizzying.

At Buddy’s, a used 32-gigabyte, early model iPad costs $1,439.28, paid over 72 weeks. An Acer laptop: $1,943.28, in 72 weekly installments. A Maytag washer and dryer: $1,999 over 100 weeks.

Source: The Washington Post (link opens in a new window)

Categories
Entrepreneurship, Impact Assessment
Tags
financial capability, financial inclusion, social development, social entrepreneur