Research by the Center for Responsible Lending (CRL) shows important information regarding payday lending and borrowers who find themselves trapped in the payday debt cycle.
According to CRL, it's not just the demand for new payday loans that leads to trouble for borrowers. Rather, the study verified that approximately 75 percent of the payday industry's loan volume was generated in particular by customers who are opening payday loans to repay their first payday loan.
The report came to light just before the California Senate Judiciary Committee met to review AB 377, a payday lending bill that ignited controversy.
CRL reports payday lenders generally make loans due in full on a payday and charge close to $60 for an average $350 loan. Since low-income customers may experience a shortfall by their next payday, lenders anticipate their return for a new loan. CRL estimates that those types of customers account for 76 percent of total loan volume.
If you are caught in the payday loan cycle and a paying too much on credit card payments, debt settlement might be a viable option for you to live better debt free.
Monday, August 3, 2009
Subscribe to:
Post Comments (Atom)
Posts
0 comments:
Post a Comment