Leonard Abbott of San Marcos had heard about the hazards of pay day loans — the small-dollar, high-interest credit that will quickly trap borrowers in a morass of financial obligation.
Leonard Abbott of San Marcos had heard about the potential risks of pay day loans — the small-dollar, high-interest credit that will quickly trap borrowers in a morass of financial obligation. However when unforeseen medical bills blew an opening inside the month-to-month spending plan this past year, he felt he’d nowhere else to show. He took down a $500 loan, hoping to repay it in complete in 2 months. He sought more loans, until about a third of his $1,700 monthly take-home pay was going toward paying interest and fees alone when he couldn’t.
“The 2nd loan it kind of just snowballed,” said Abbott, a 53-year-old Department of Public Safety security officer at the state Capitol that I got was to help pay the first one, and. Read More …