Some do, depending on their circumstances. But when you’ve got a big income it’s easier to get out from under the debt.
Most rich people just use credit cards, though. They’re arguably worse than payday lenders, since the credit limits are much higher. But they’re also very risk averse, so they don’t extend credit to the lower income groups.
Payday lenders and other loan sharks have to spend more on collections and run tighter margins as a result. Far easier to be a credit card company and simply wage a finger at someone’s credit rating to extort payment than to actually execute a repo.
Some do, depending on their circumstances. But when you’ve got a big income it’s easier to get out from under the debt.
Most rich people just use credit cards, though. They’re arguably worse than payday lenders, since the credit limits are much higher. But they’re also very risk averse, so they don’t extend credit to the lower income groups.
Payday lenders and other loan sharks have to spend more on collections and run tighter margins as a result. Far easier to be a credit card company and simply wage a finger at someone’s credit rating to extort payment than to actually execute a repo.