The more short-term, small-dollar credit options, the better

The COVID-19 pandemic continues to damage many people’s personal finances and has compelled them to seek relief through any number of options, from home equity loans to skipping mortgage payments and more. As the incoming Biden administration makes plans to put America on a path to sustainable economic recovery, it’s critical that lawmakers carefully consider the long-term unintended consequences of measures that are designed to help. One worrisome example is the notion that we can help the underbanked by taking “unaffordable” alternative credit options away from them, which will do more harm than good and isolate millions of already struggling Americans.