Microloans For Third World Countries?

Taylor and his wife support kids in third world countries. He has heard about the practice of microloans to help aspiring entrepreneurs in those countries and wonders what Dave thinks of those.

QUESTION: Taylor and his wife support kids in third world countries. He has heard about the practice of microloans to help aspiring entrepreneurs in those countries and wonders what Dave thinks of those.

ANSWER: The question you have to ask yourself is, “If I truly don’t believe debt is a good idea, why would it be a good idea in a poverty-stricken situation?” What I would want to do in those situations is help someone get an entrepreneurial endeavor started. It’s not a handout. It’s a hand up. Teach the process of paying it forward. Most of us who become successful become big givers. If they become successful, they will by their nature pay it forward—assuming they’ve been taught a proper value system as a part of this process, which is the only way a microloan would work anyway.

I think it sounds like a miniature credit card. It scares me to death for that reason.