The REVOLVING doorPayday loan providers keep borrowers coming back
RICHMOND, Va. Elizabeth Lawson’s problems started by having an $800 electric bill, caused by a malfunctioning hot water heater. However it ended up being her move that is next that her funds spinning out of control.
Lawson, who lives when you look at the tiny city of Shawsville in southwest Virginia, went along to a payday financing store in nearby Christiansburg. She borrowed $200, agreeing to cover a $36 charge once she received her Social Security that is next check.
Then Lawson, 49, began juggling, borrowing from a single payday loan provider to simply help pay back one other. In 2004 and 2005, Lawson stated, she and her spouse had significantly more than five loans at different payday stores, accumulating charges along just how. She expects her monetary dilemmas to bring about bankruptcy.
