We love to believe that all men are created equally. But that equality does not translate to any practical aspect of lived experience. In the US and other parts of the world, there is an economic divide along many fault lines. There is the racial divide, the regional divide, and the gender divide, also known as the gender gap.
There are numerous historical and cultural reasons that explain how these gaps were created and why they persist in the modern era of “wokeness.” Old prejudices die hard and become generational curses. That said, the real question is not how we got this way, but how we break the cycle and move toward a society where the theory of how we are created is less important than the reality of how we are treated.
Patriot Funding is a lender that is trying to reverse the effects of institutional, economic inequality one individual at a time. To better understand how Patriot Funding and similar companies are taking the problem of economic inequality head-on, we have to better understand the problem:
Interest Rates and Credit Scores
Filed under “the rich get richer,” people with lots of money get lower interest rates than people who are struggling. That means that someone doing well financially will ultimately pay a lot less for the same item than a person who is barely making ends meet.
Patriot Funding reduces some of that disadvantage by offering debt consolidation loans. That is the type of loan that combines all your high-interest loans into one consolidating loan payment and a lower interest rate. This isn’t a complete solution to the deeper problem that pushes people into debt in the first place. But it is one very important piece of the puzzle.
Credit score is another factor that can make the difference in whether or not you get an offer with reasonable terms. The benefits of a high credit score become readily apparent with something like a home mortgage. It might be even more apparent with vehicle purchases. Instead of paying the advertised $199 a month for a new car, a low credit score could have you paying twice that amount for something preowned and less reliable. Reducing your number of creditors and lowering your monthly bill can increase your credit score.
Inherited Wealth Vs. Earned Income
There is a big difference between wealth and income. You don’t inherit income and you don’t earn wealth. One is passed down to the next generation while the other is gained through sweat and tears. The vast majority of hard workers have little, if any net worth to their name.
As recently as 2016, the net worth of white families was seven times greater than families of color. The trend line of the disparity has gone up over the past 50 years. It is a condition that has remained durable against capitalism, market forces, and social unrest.
There is also a tremendous income disparity that fuels the wealth disparity. When a person makes more income,they can make bigger investments in markets and real estate. Those investments become wealth multipliers. A person getting by from paycheck to paycheck has little left over for savings and investments. That lower income leads to lower credit scores, lower credit worthiness, and higher bills than an affluent person. It is a vicious cycle that broadens the wealth gap each time it comes full-circle.
Forget About the Bigger Picture
Patriot Funding will not be the market force that overturns the institutionally entrenched financial inequality in America. That is too much to ask from any one company. So forget about the big picture and focus on your own micro economy. The question is not whether a consolidation lender can change the world, but rather if such a lender can turn the tide in your particular square-foot of it.
Reducing your debt frees up more of your resources for savings and investments. It helps you increase your credit score. Sometimes, a few points makes all the difference. Finally, it ends the downward spiral and gives you a boost in your upward climb. There is always a way up and a way out. And just like the journey of a thousand steps, it begins by taking the first one.