FRANKFORT, Ky. (AP) - Poor people in Kentucky actually pay more for everyday expenses than their wealthier counterparts, according to a new study.
Low-income families are likely to have more expensive mortgages, higher interest rates on their car loans and costlier auto insurance, according to a study from the Washington-based Brookings Institution. The report also found that poor people often pay more for their groceries, furniture and appliances.
"Some of the highest prices for basic necessities in Kentucky are in its poorest areas, including the Appalachian region, where everything from mortgages to insurance is comparably more expensive than in most other areas of the state," the report said.
Terry Brooks, executive director of the Kentucky Youth Advocates, said companies across the state could help by finding "innovative ways" to offer poor people loans with lower interest rates.
Those who have low incomes make strategic decisions, but have limited options in what they can do, Brooks said.
"It's clearly not a quick fix," Brooks said.
(Copyright 2007 by The Associated Press. All Rights Reserved.)
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