The Bridgespan Group reposted this
Partner @ Bridgespan | Economic Mobility, Racial Justice Expert | Obama USA Leadership Fellow
Did you know? Despite having lower incomes than white households on average, Black and Latinx households pay more in interest and fees—both by percentage of income and in absolute terms. For many households of color, the inability to tap into emergency savings—for themselves or others—leaves them exposed and reliant on predatory lenders charging exploitive interest rates up to 600%. That is a vicious cycle where poverty is not just penalized with higher fees but also greater exposure to eviction and homelessness when people fall on hard times. Building on the momentum of "Boats for a Rising Tide: How Philanthropy Can Help Narrow the Racial Wealth Gap," we've released an editorial with Candid exploring the crucial but underexplored area of avoiding unnecessary debt, fines, and fees. In this piece, we highlight how Stable Home Fund and Esusu provide dignity and grace to people in need by pairing rental relief with alternative credit building. More than a leg up, they demonstrate that we can break the cycle of poverty by shifting our lens to wealth as the true signal of economic security and opportunity. What do you think about this approach? Let's continue this important conversation. #RacialEquity #Philanthropy #EconomicJustice #FinancialInclusion Année Kim, Zachary Slobig, The Bridgespan Group
Thank you for sharing your expertise and insight with us!