Numerous cash-strapped Tennesseans have actually looked to pay day loans in tough times.
But a new item known as a flex loan is quickly becoming the industry norm.
It is an open-ended personal credit line with an impressive 279per cent yearly interest.
Tennessee is among the very very first states where you could have the new flex loans. Like pay day loans, these loans also provide high rates of interest.
Even though those who work within the industry say loans that are flex a lot better than conventional payday advances, both experts and customers we chatted to say you have got to be cautious because flex loans could be hard to pay back.
When you are brief on money, a flex loan may appear to be the clear answer.
But also for people like Malia Andrews, it absolutely was the answer that is wrong.
“we more or less had a whole meltdown within the vehicle, ” Andrews recalled, explaining as soon as she knew it can simply simply simply take years to cover down her flex loan. Continue reading “Experts Phone 279% Loan A ‘Debt Trap’”