Numerous tennesseans that are cash-strapped looked to pay day loans in a down economy.
But a brand new product called a flex loan is quickly becoming the industry norm.
It is an open-ended personal credit line with an astonishing 279per cent yearly rate of interest.
Tennessee is amongst the very first states where you could have the brand new flex loans. These loans also have high interest rates like payday loans.
And even though those who work in the industry say loans that are flex much better than old-fashioned payday advances, both experts and customers we chatted to say you need to be cautious because flex loans could be tough to pay back.
If you are quick on money, a flex loan may appear to be the solution.
However for people like Malia Andrews, it had been the incorrect solution.
“we almost had a whole meltdown within the automobile,” Andrews recalled, explaining the minute she recognized it could just just take years to cover her flex loan off.
She explained, “and just like $20 of my re re payment would definitely the key in addition to sleep ended up being, like $300, ended up being going to the rate of interest.”
The mother that is single that, if she’d known how much the mortgage would wind up costing her, she never ever will have taken it away.
Then there is Fort Campbell veteran Joshua Hause.
“Everybody had been relocated in to a flex loan account — there is no option,” Hause stated. Continue reading