The High Cost of Poverty

DeNeen L. Brown in the Washington Post…

Outside the ACE check-cashing office on Georgia Avenue in Petworth, Harrison Blakeney, 67, explains a hard financial lesson of poverty. He uses the check-cashing store to pay his telephone bill. The store charges 10 percent to take Blakeney’s money and send the payment to the phone company. That 10 percent becomes what it costs him to get his payment to the telephone company on time. Ten percent is more than the cost of a stamp. But, Blakeney says: “I don’t have time to mail it. You come here and get it done. Then you don’t get charged with the late fee.”

Blakeney, a retired auto mechanic who now lives on a fixed income, says: “We could send the payment ahead of time but sometimes you don’t have money ahead of time. That’s why you pay extra money to get them to send it.”

Via: @joguldi | Filed under: trickle down  deneen l. brown