In particular, financial literacy education may help to prevent vulnerable consumers from becoming entangled in some types of financially devastating credit arrangements. One long-standing source of concern is abusive lending practices that target specific neighborhoods or vulnerable segments of the population and can result in unaffordable payments, equity stripping, and foreclosure.
With this issue in particular consumer and community advocates, bankers, and policymakers have all sought to raise consumer awareness about the dangers of such aberrant lending practices, and financial education is an important component of their efforts.