First, a disclosure: included in a course IвЂ™m using, IвЂ™m associated with Rhode Island Payday Lending Reform, the coalition whoever cause we discuss below.
Payday advances are an easy method for those who need money, and donвЂ™t have access to conventional banking resources, getting a loan quickly. Often, a debtor will bring in a paystub, and get a short-term advance loan that is said to be paid back because of the borrowerвЂ™s next payday. Interest levels on these loans usually are extraordinarily high. In Rhode Island, the maximum rate of interest is 260%.
RI Payday Lending Reform press seminar, RI State home (picture by writer)
A week ago, people in the RI Payday Lending Reform coalition held a press meeting into the State home to advocate for legislation presently into the RI home and Senate that could cap interest levels of these loans at 36%. The coalition includes neighborhood advocates, nonprofits, spiritual teams, and politicians.
The issue with payday advances is the fact that they frequently become financial obligation traps. Continue reading Why RI Needs Payday Lending Reform