The US payday loans crisis: borrow $100 to make ends meet, owe 36 times that sum

The US payday loans crisis: borrow $100 to make ends meet, owe 36 times that sum

Thursday, May 28, 2015

You borrow $100 to keep your electricity on and if you can’t pay it back, your debt increases to $3,600. This is a true scenario for many families struggling to make ends meet financially that become dependent on payday loans. Payday loans are free from underwriting or interest regulation so interest rates are commonly 200% – 500%.  A vicious cycle of suffering.

To learn about the financial self-sufficiency of families in our region, visit GulfCoastIndicators.org/Financial-self-sufficiency