
COMMON
WEALTH
ATHENS

THE need FOR COMMON WEALTH atHENS
Here's a staggering statistic: In 2018, 34% of residents in Athens, Georgia were living below the poverty line. Thirty-seven percent of Georgians lacked significant access to mainstream banking products. Only 50% of Georgia households have emergency savings in the past year, which may necessitate the need to borrow in an emergency. Despite working a full-time job and/or multiple part-time jobs, many workers still find themselves earning below the poverty level and frequently find themselves trapped in a vicious cycle of poverty. To compound the difficulties, a very high percentage of our neighbors are unbanked due to the inability to meet minimum financial institution qualifications and/or prior negative experiences with financial institutions, promoting a cycle of distrust of banks.
As a result, our low-income neighbors are often in crisis mode. Many end up using high-fee, prepaid debit cards for all transactions, limiting the ability to save. Others are forced to turn to predatory lenders, check cashing services, tax refund advances and rent-to-own purchases. A typical borrower could pay $800 or more for a short-term loan of $350. The disproportionately high cost of these products lessens the opportunity for upward mobility for low-wage workers. Such expensive debt repayments can sap much-needed income from any family, and low-income families are especially impacted.
