Millions of people look to family and friends for financial help
InvestigateTV – More than 25 million people relied on loans from loved ones to meet their spending needs, according to the latest Census Bureau Household Finance Survey. This figure is up from 19.1 million people at the same time last year.
Kaben Clauson, CEO of Pigeon Loans, said a big reason could be that a third of all Americans belong to a group called “invisible credit.” “Dark credits” don’t have a real credit history or have a damaged credit rating, and they can’t get a good rate.
“Americans come primarily from black and Hispanic communities,” Clauson said. “To be frank, this leaves them with few options because traditionally many of them have to go to payday lenders or take out loans at very high interest rates and which can be predatory.”
Clauson created the app and website, Pigeon Loans, to give families the ability to make a legal promissory note that takes care of the bookkeeping for them. The app automates payments and even lets users decide how much, if any, interest to charge.
If you are asked for financial help, Clauson advised you to make sure your own financial house is in order, so that you don’t get into money trouble yourself.
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