How Predatory Debt Traps Threaten Vulnerable Families

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Recently, Renee Bergeron—a mother that is single Duluth, Minnesota—was between paychecks and took away a tiny cash advance to simply help protect her lease. When her payday came around, Bergeron found—much to her dismay—that she had been not able to spend her fundamental bills and additionally make her loan payment. Because of this, Bergeron took away another cash advance so that you can fund the loan that is initial. Today, almost 10 years later on, Bergeron and her kiddies reside in a homeless shelter, and she continues to be saddled with increased than $4,000 in cash advance financial obligation.

Bergeron is merely one away from roughly 12 million borrowers whom sign up for such loans each 12 months, based on the Pew Charitable Trusts. More over, her experience is certainly not unique—a payday that is small routinely grows right into a financial obligation of hundreds and even 1000s of dollars. Continue Reading