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Weekend read: Wonga is the symptom, not the problem

This weekend, I recommend spending some time reading this article, which Tim Harford originally wrote for the Financial Times. Almost all of Tim’s FT articles are brilliant, but this one particularly stuck in my mind for the clarity of its argument on a complex subject.

I was particularly struck by this passage:

A payday loan can do real good, as a cash injection that helps avoid far more serious financial consequences, such as the loss of a job because the car broke down or penalty charges for failing to pay a bill on time. A randomised trial conducted in South Africa showed that this was not just a theoretical possibility. The experiment randomly approved or rejected applications for loans at an annual percentage rate of 200 per cent. Those who received one ended up better off than those rejected.

This is an aspect of this particular debate that’s all-too-often overlooked.

This 2,085th post was filed under: Weekend Reads, , , .

More posts worth reading

What I’ve been reading this month (published 5th March 2018)

What I’ve been reading this month (published 6th February 2018)

TV I’ve been watching lately (published 9th January 2018)

The medium is not the message (published 23rd April 2007)

Medical emergencies at 40,000 feet (published 3rd May 2013)

John Spencer has died (published 17th December 2005)

Funeral music revisited (published 1st June 2007)

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