From Payday Loans To Pawnshops: Fringe Banking, The Unbanked, And Health

Eisenberg‐Guyot, Jerzy; Firth, Caislin L.; Klawitter, Marieka; Hajat, Anjum

doi:10.1377/hlthaff.2017.1219

Cited by 29 publications

(26 citation statements)

References 23 publications

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“…Furthermore, our findings advance knowledge about how diverse forms of indebtedness are associated with health. While previous studies have demonstrated that unsecured debt is distinct from collateralized home loans as a risk factor for poor health ( Berger and Houle, 2016 , Drentea and Lavrakas, 2000 , Sweet et al, 2013 , Zurlo et al, 2014 ), our findings deepen that distinction by contributing to evidence that short-term loans are a specific type of unsecured debt with implications for health ( Eisenberg-Guyot et al, 2018 ).…”

Section: Discussioncontrasting

confidence: 48%

“…For many of these people, payday loans (or their equivalent) were an important part of their debt story; 32% of those we interviewed had taken out payday loans and experienced the “loan shark” repayment practices of short-term lenders as distinctly problematic and “drastic” (Anonymous, In Review). Despite the highly troublesome and potentially stressful nature of payday loans, to our knowledge, only one epidemiological study thus far has explored the health correlates of short-term loan debt ( Eisenberg-Guyot, Firth, Klawitter, & Hajat, 2018 ). In that study, short-term (“fringe”) loan borrowing was associated with higher prevalence of poor self-rated health.…”

Section: Introductionmentioning

confidence: 99%

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Short-term lending: Payday loans as risk factors for anxiety, inflammation and poor health

Sweet

Kuzawa

McDade

2018

SSM - Population Health

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While research now consistently links consumer financial debt with adverse emotional health outcomes, specific forms of debt and their impact on measures of physical health are underexplored. This gap in knowledge is significant because different forms of loans and debt may have different experiential qualities. In this paper, we focus on a type of unsecured debt - short-term/payday loan borrowing – that has risen dramatically in recent decades in the United States and is characterized by predatory, discriminatory, and poorly regulated lending practices. Using data from a study of debt and health among adults in Boston, MA (n=286), we test whether short-term borrowing is associated with a range of emotional and physical health indicators. We find that short-term loans are associated with higher body mass index, waist circumference, C-reactive protein levels, and self-reported symptoms of physical health, sexual health, and anxiety, after controlling for several socio-demographic covariates. We discuss these findings within the contexts of regulatory shortcomings, psychosocial stress, and racial and economic credit disparities. We suggest that within the broader context of financial debt and health, short-term loans should be considered a specific risk to population health.

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Section: Discussioncontrasting

confidence: 48%

Section: Introductionmentioning

confidence: 99%

Short-term lending: Payday loans as risk factors for anxiety, inflammation and poor health

Sweet

Kuzawa

McDade

2018

SSM - Population Health

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“…Variations in the local financial services environment matter because of the relationships between neighborhoods' brick-and-mortar financial services and their residents' participation in economic life, such as paying bills (Friedline, Despard, and West 2017a), receiving health care (Eisenberg-Guyot et al 2018;Melzer 2011), and accessing credit (Bertrand and Morse 2011;Bhutta 2014;Bhutta, Skiba, and Tobacman 2015;Friedline et al 2017b). For instance, having banks within closer proximity to or more highly concentrated in neighborhoods is associated with being more likely to use these financial services, have access to credit, and experience increased opportunities for entrepreneurship (Brown, Cookson, and Heimer 2016;Friedline et al 2017b;Kerr and Nanda 2009).…”

Section: The Local Financial Services Environmentmentioning

confidence: 99%

The Financial Services Environment and Schools' Savings Rates in the San Francisco Kindergarten to College Program

Friedline¹,

Dunham²,

O’Brien³

2019

Journal of Consumer Affairs

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Children's savings accounts (CSAs) have emerged as a promising intervention to improve educational outcomes, curtail rising student loan debt, and promote equality of opportunity. Numerous localized CSA programs have emerged in the last decade, and many are embedded within school systems. This study leverages novel data to investigate participation in one of the oldest and most well‐known CSA programs in the country: the San Francisco Kindergarten to College (K2C) Program in the San Francisco Unified School District. Spatial analysis of 21,617 accounts at 74 elementary schools reveals statistically significant differences in the rates of elementary schools' K2C account participation based on the concentrations of banks, credit unions, and alternative financial service providers—net controls for neighborhood demographics. Unless explicitly addressed, substantial variations in the financial service environment across neighborhoods could undermine participation in school‐based CSA programs for the very children these programs intend to support.

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“…These factors impacted wealth, home ownership, and Black Americans' ability to conduct common financial transactions like obtaining a mortgage or bank account (Rothstein, 2017). As a result, banking status, which is correlated with health outcomes and wealth, is an area of potential impact for Black Americans today (Hernandez, 2009;Eisenberg-Guyot, 2018). Later, we will discuss the impact of the previously mentioned policies and their influence on banking status and wealth for Black Americans.…”

Section: Poverty and Neighborhoodmentioning

confidence: 99%

“…As such, the impact of racism in policy and its effect on banking practices and socioeconomic status remains largely unexplored. The first public health study to approach the subject of banking status and health came in March 2018 (Eisenberg-Guyot, Firth, Klawitter & Hajat, 2018). Although the subject of racial inequity was discussed, the impact of race on thoughts and beliefs about the banking system and practices was not directly addressed.…”

Section: Public Health Impactmentioning

confidence: 99%

“Pissing in the wind”: racially discriminatory economic policies’ impact on today’s banking status, use of alternative financial services and health outcomes.

Jr¹

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increased while income differences have narrowed (Keister, 2000). As a result, in the U.S., wealth is often a means of passing along advantage, or disadvantage in the case of those without wealth (Keister, 2000). Shapiro et al. (2006) write that wealth allows generational access to the "good life," often described as human capital development in the form of business opportunities, home ownership, community location, health, travel, comfort, and security. Consideration of the differences between wealth and income may prompt inquiry into the relationship between the two. One may assume that although wealth and income are different, they are highly correlated. However, studies of this subject suggest the relationship between the two is "minimal at best" (Keister, 2000). The poor correlative relationship between income and wealth suggests that factors beyond income are impacting not only the wealth of those at the bottom of the wealth gap, but the ability of those populations to convert income to wealth (Asante-Muhammad, 2017). Subsequently, wealth differences may be a vehicle through which discrimination and injustice operate over time. To explain further, it is critical to explore the impact of not having wealth as well as policies and practices that have historically contributed to this occurrence. Inequity in Wealth and Health The distribution of wealth and trends in poor health outcomes in the U.S. are highly predictable. Consider that given a person's race and net worth, one can predict where that person lives, what diseases they are likely to have, and perhaps most importantly, when they will die (Bond Huie, 2003). Intuitively, one may conclude that independent of other factors, more wealth effectively equals longer life. Not surprisingly, in general this is true. In the U.S., wealth is a fundamental determinant of health because disease, cancer, and violence. Specifically, this study seeks to answer the following questions: Research Question 1: To what extent does the density of community banks in a census tract relate to prevalence of heart disease, prevalence cancer, and homicide in that census tract? Research Question 2: What alternative banking methods are utilized by Black West Louisville residents and for what purposes? Research Question 3: What factors influence the Black community's banking and financial practices?

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From Payday Loans To Pawnshops: Fringe Banking, The Unbanked, And Health

Cited by 29 publications

References 23 publications

Short-term lending: Payday loans as risk factors for anxiety, inflammation and poor health

Short-term lending: Payday loans as risk factors for anxiety, inflammation and poor health

The Financial Services Environment and Schools' Savings Rates in the San Francisco Kindergarten to College Program

“Pissing in the wind”: racially discriminatory economic policies’ impact on today’s banking status, use of alternative financial services and health outcomes.

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