Maria Galvan used to make about $25,000 a year. She didnвЂ™t qualify for welfare, but she still had trouble meeting her basic needs.
вЂњI would just be working just to be poor and broke,вЂќ she said. вЂњIt would be so frustrating.вЂќ
When things got bad, the single mother and Topeka resident took out a payday loan. That meant borrowing a small amount of money at a high interest rate, to be paid off as soon as she got her next check.
A few years later, Galvan found herself strapped for cash again. She was in debt, and garnishments were eating up a big chunk of her paychecks. She remembered how easy it was to get that earlier loan: walking into the store, being http://www.https://onlineloanslouisiana.net/ greeted with a friendly smile, getting money with no judgment about what she might use it for.
So she went back to payday loans. Again and again. It began to feel like a cycle she would never escape.
вЂњAll youвЂ™re doing is paying on interest,вЂќ Galvan said. вЂњItвЂ™s a really sick feeling to have, especially when youвЂ™re already strapped for cash to begin with.вЂќ
Like thousands of other Kansans, Galvan relied on payday loans to afford basic needs, pay off debt and cover unexpected expenses. In 2018, there were 685,000 of those loans, worth $267 million, according to the Office of the State Bank Commissioner.
But while the payday loan industry says it offers much-needed credit to people who have trouble getting it elsewhere, others disagree.
A group of nonprofits in Kansas argues the loans prey on people who can least afford triple-digit interest rates. Those people come from lower-income families, have maxed out their credit cards or donвЂ™t qualify for traditional bank loans. And those groups say that not only could Kansas do more to regulate the loans вЂ” itвЂ™s fallen behind other states whoвЂ™ve taken action.
Payday Loan Alternatives
Last year, Galvan finally finished paying back her loans. 继续阅读Payday Loans In Kansas Can Come With 391% Interest And Critics Say It’s Time To Change