Borrowers of ‘payday’ financial loans are trapped in pattern of financial obligation

Borrowers of ‘payday' financial loans are trapped in pattern of financial obligation

Sunday

Christmas time 2001 troubled Anita Monti for pretty much 24 months.

The 60-year-old new york homeowner is behind on her electric statement and lacking cash to get presents on her grandkids that seasons, so she requested a temporary “payday” mortgage.

That error secured Monti into a period of twice-monthly borrowing from the bank that fundamentally cost the girl $1,780 to settle $700 in loans – because of a powerful annual interest exceeding 400 %. Continue reading