For Us citizens struggling in this economy, an advance for a paycheck could be a lifeline. These advances – also called pay day loans – have bee a fast-growing online businesses, with almost $11 billion lent away final year.
The amount of money usually es with crippling rates of interest, as CBS Information chief investigative correspondent Armen Keteyian discovered because of this report together with the Center for Public Integrity.
Ramon Zayas had been struggling with prostate cancer tumors and dealing with mounting bills.
“I’d to pay for the bill that is electric or have the lights deterred,” Zayas stated.
So he and their spouse got a $250 cash advance from an online loan provider 500 FASTCASH. It charged an interest that is annual of 476 %. Zayas thought he had been paying down the loan, but confusing charges, therefore the interest that is high pressed the price to $125 30 days – on a $250 loan. Like lots of people, he could not continue because of the soaring costs.