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# High-cost short-term credit keeps people near...
> High-cost short-term credit keeps people near subsistence rather than lifting them out of it. Pawn loans, payday advances, and carried credit card balances can be useful in a true emergency, but relying on them month after month transfers a steady share of income to interest and fees, and building even a small cash reserve is one of the most practical ways to escape the cycle.
**Source:** [[livestreams/Beyond Hand-to-Mouth Exchange — Trust, Reciprocity, and Long-Horizon Value - Workbook|Beyond Hand-to-Mouth Exchange — Trust, Reciprocity, and Long-Horizon Value]]
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“High-cost short-term credit keeps people near subsistence rather than lifting them out of it. Pawn loans, payday advances, and carried credit card balances can be useful in a true emergency, but relying on them month after month transfers a steady share of income to interest and fees, and building even a small cash reserve is one of the most practical ways to escape the cycle.”
— Bryant McGill
https://bryantmcgill.com/quotes/quotes-high-cost-short-ways-escape-cycle
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