Leonard Abbott of San Marcos had heard about the risks of pay day loans — the small-dollar, high-interest credit that will quickly trap borrowers in a morass of financial obligation. Nevertheless when unforeseen medical bills blew an opening in their month-to-month spending plan just last year, he felt he had nowhere else to show. He took away a $500 loan, hoping to repay it in complete in 2 months. As he could not, he desired more loans, until about a 3rd of their $1,700 month-to-month take-home pay ended up being going toward repaying interest and charges alone.

“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. “One thing it does not make a difference what number of payday advances you’ve got, you continue to be eligible for more. Continue reading →