Dear Editor,

Credit dependence has fast become the economic norm for most Jamaican households these days, and it does not come cheap. The cost of credit in Jamaica is very high, but many of us have little choice given the high cost of goods and services compared to our ever-eroding disposable income.

In a Wednesday, September 2, 2015 Business Observer article, ‘Consumers stretch to meet school expenses’, the point was made clear. “Back-to-school shoppers have increased their dependence on book vouchers, credit cards and education loans for the upcoming 2015/2016 school year.” This, as the eve of the new school year revealed the reality of the credit dependence of which I speak. Add all the other expenses that people have to manage and you will see that the severity of the situation has forced consumers to resort to credit.

In a Wednesday, September 2, 2015 Business Observer article, ‘Consumers stretch to meet school expenses’, the point was made clear. “Back-to-school shoppers have increased their dependence on book vouchers, credit cards and education loans for the upcoming 2015/2016 school year.” This, as the eve of the new school year revealed the reality of the credit dependence of which I speak. Add all the other expenses that people have to manage and you will see that the severity of the situation has forced consumers to resort to credit.

The article also supported my point on the eroding disposable income of Jamaicans as there was a reported “70 per cent increase in the number of people using book vouchers to buffer the cost of purchasing textbooks”. I express gratitude on behalf of the many parents to those who provided those book vouchers. We must recognise and laud the companies, civic groups, churches, and other NGOs that have seen the need and taken the initiative to render assistance to parents seeking to equip their children for school.

When it comes to loans, although the Bank of Jamaica has lowered interest rates, consumers continue to be offered high interest rates from commercial banks on loans, and that only adds to the burden of taxation and inflation.

Education is the key to unlock the shackles of poverty and, although parents have no money, taking on the burden of debt and sacrificing life’s luxuries in order to secure a brighter future for our children are sacrifices worth taking. Let’s support our parents and children as they strive for excellence and the fulfilment of their aspirations. The toil and sacrifices will pay off one day. I appeal to our leaders to make wise decisions that will ensure the future of our children is secure, and that will create the opportunities they deserve.

Derville Lowe

Kingston 19

drvlllowe@yahoo.com

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