Title: Cycle of poverty - Wikipedia
Headings: Cycle of poverty
Cycle of poverty
Contents
Causes of the cycle
Chronic general poverty
Non-circular causes of poverty
Factors maintaining personal poverty
Internal and external factors sustaining poverty
Systemic factors
Emotional factors – bias
Decision-making
Intergenerational
Medical factors – mental illnesses
Summary
Choices and culture
Discrimination and concentration
Generational poverty
Early childhood adversity and basic needs stressors contributing to the cycle of generational poverty
Family background
Lack of jobs due to deindustrialization
Effects of modern education
Culture of poverty
Life shocks
Tracking in education
Theories and strategies for breaking the cycle
General approaches
Two-generation poverty alleviation approach
Effects on children
Developing world
See also
References
External links

Content: People who have had previous credit problems, such as overdrafting an account, may not be eligible to open a checking or savings account. Major reasons for not opening a bank account include not trusting banks, being concerned about not making a payment due to a bank error or delay, not understanding how banks work, and not having enough money to qualify for a free account. Debt – People who have no net savings sometimes have to use high-interest credit cards or other loans to pay for emergency expenses or even daily needs. Interest must be paid on debt, and a lower credit score (which can result from a low income) typically results in a higher interest rate, such as for a subprime mortgage. Payday loans can have an extremely high interest rate, and other forms of debt not typically used by high-income consumers include refund anticipation loans, car title loans, and pawnshops. Overdue payments – People who cannot afford to pay all of their bills on time, or who accidentally make a late payment due to waiting until the last possible day can incur late fees not affecting people who can simple schedule automatic payments from savings. Furniture – If unable to afford a piece of furniture, a rent-to-own agreement can make it available without having savings, but at a higher long-term cost. Transportation – If unable to afford a car, taking public transportation can take longer, effectively an increased cost in the form of lost time. Many poor people must live further away from work in order to find housing they can afford. Health care – Though most industrialized countries have free universal health care, in the United States and many developing countries, people with little savings often postpone ex